ISLAMABAD, Jan 5: Pakistan Railways (PR), Qasim International Container Terminal (QICT) and Premier Mercantile Services (PMS) would sign an MoU here on January 7.

According to a spokesman of the Ministry of Railways, all the three parties will jointly work on the four new dry ports projects being planned in the country.

He said that the Prem Nagar project is the first one which will be functioning by December 2008.

Four Dry Ports at Peshawar, Islamabad, Lahore and Karachi are operating on railway system whereas additional three are functioning in private sector at Faisalabad, Sialkot and Multan.

This is a joint venture programme at the cost of Rs1729 million out of which Railway share is Rs494 million and the rest will be invested by two parties Qasim International Container Terminal, (QICT), a subsidiary of multinational business firms known as Dubai Port World and Premier Mercantile Services (PMS). The parties will sign a 35-year contract to run the project.

The spokesperson said that 100 acres of land has been acquired for the terminal. The federal government has approved the project and PR has paid Rs202 million for land.

PR will provide rail infrastructure whereas allied facilities including building, machinery and office equipment will be arranged by the private parties.

PR will earn additionally Rs911 million for first year which will increase to Rs17118 million by the end of 25th year of commercial operation.

This Dry Port will also contribute significantly to the industries being established in “Sundar Industrial Estate”, which is the biggest industrial estate in the Punjab.

The Dry Port will also cater for the needs of the industry in Sahiwal, Okara, Kasur, Lahore, Sheikhupura and Gujranwala districts.

Caretaker Minister for Railways Mansoor Tariq will be the chief guest of the ceremony.

—APP