KARACHI, Jan 29: The Karachi Port Trust and Karachi International Container Terminal have entered into an agreement for developing KICT's phase III project at West Wharf of the Karachi Port.

KPT Chairman Vice-Admiral Ahmad Hayat and KCIT CEO Khurram S. Abbas signed the agreement at a simple ceremony chaired by Ports and Shipping Minister Senator Babar Khan Ghouri here on Saturday.

Speaking on the occasion, the minister said that it was a big occasion that the country's oldest port was being upgraded to an international level with such container terminals as KICT.

Mr Ghouri said the phase III development project of the KCIT would bring in $55 million direct investment in the country. He said that consistency in government policies during the last four years built confidence in foreign investors.

The minister stressed the need to expand cargo handling and storage facility, as the country's trade was also expanding fast. He said the phase III project would help cater the growing needs of cargo movement. The minister also appreciated the efforts and dedication of KPT teams for quickly responding to private sector activities.

The minister said that quick response and fast working of the KPT could be judged from the fact that on January 26, 2005, the KPT Board of Trustees gave its approval for the project and after only three days "we are holding a singing ceremony for the project".

He urged upon the KCIT management to complete the project ahead of the stipulated period of 36 months, which would help contribute towards economic growth of the country.

The KPT chairman said the trust had already undertaken the dredging work for these berths to improve the draught up to 14 metres. He said the ultimate goal of the KPT was to hand over all the activities to the private sector and play a role of regulator only.

The KCIT CEO informed the participants that the phase III project would create 150 new jobs. He said the terminal's present capacity of handling 350,000 TEU containers would be enhanced to 750,000 TEUs.

"The funding for the project will be through 50 per cent equity and 50 per cent loans, which will be handled by a consortium of banks," he said, adding that presently the KPT was getting around $8 million in royalty from KICT.

In reply to a question, Babar Khan Ghouri said the ministry had formed a committee to find out ways and means for reducing charges of ports. He informed reporters that groundbreaking of the phase III would be held in the first week of March.

The KCIT CEO said that with KICT's expansion plans in place, the company would operate a total of seven quay cranes, 20 rubber-tyred gantry cranes (RTGs), eight reachstackers, six empty container handlers, 48 terminal tractors, 64 chassis, six forklifts and numerous radio data terminals (RDTs).

The profile included equipment procured in addition to the mandated equipment under the agreement with the KPT, he added.

The container transport industry in Pakistan, he said, was growing at a remarkable pace. "The KICT's phase III development is timely." Furthermore, he said with Pakistan crossing the one million TEU throughput level last year, there was a need for a national strategy to create a necessary infrastructure to handle the country's growing trade.

"This will enable the port to further strengthen its role as the region's premier centre of trade."