ISLAMABAD, Sept 3: A memorandum of understanding (MoU) was inked here on Monday between Port Qasim Authority (PQA) and a consortium of Fauji Foundation, Akbar Group and Portia Management Services of UK for construction of Pakistan’s first dedicated modern grain and fertiliser terminal at Port Qasim.

Speaking at the signing of the MoU, the prime minister said the terminal was strictly a private sector project and that Pakistan’s private entrepreneurs should work in tandem with the government in all fields, particularly in infrastructure development.

He said that the addition of a state-of-the-art grain and fertiliser terminal would reduce freight charges while facilitating the storage, export and import of grain.

He said the government is building industrial zones, cold storages and warehouses alongside spreading network of roads to expedite industrialisation.

The PQA chairman apprised the prime minister that during the last five years, nine private sector projects, with a total invested amount of over $1.3 billion, have either been completed or are at various stages of implementation at Port Qasim.

While in comparison, he said, during the preceding 24 years, only three such projects were undertaken.

Mr Aziz said these projects would make the port more efficient.

The premier was told that the terminal would be built on BOT basis and all its assets would be transferred to the Port Qasim Authority on the completion of 30 years agreement period.

The terminal having an annual handling capacity of four million tons will be built at a cost of $100 million.

During the 30-year period, the PQA would earn an estimated $123 million.

Federal Minister for Ports and Shipping, Babar Khan Ghauri, secretary of ports and shipping and senior officials attended the meeting.