KARACHI, May 1: A South Korean company has taken up work for construction of the collapsed berths and three jetties at the Karachi Port.

Construction of the collapsed berths (No 10 and 14) and three jetties at the East Wharf has been initiated by M/s Ssangyong at an estimated cost of Rs5.5 billion, official sources said on Thursday.

As these berths outlived their design life, the port authorities engaged the design consultants, M/s Scott Wilson, in association with M/s Zaheeruddin, in 2006 for a detailed design, with a deeper depth of 16 metres and also to prepare tender documents.The KPT had originally invited international tenders for construction of five berths (14 to 17A), including a ship repair berth, from reputable marine contractors.

M/s Ssangyong, with their local partners, Usmani Associates (JV), were found to be the lowest bidder at Rs5.5 billion while Chinese contractors, M/s China Harbour Engineering Co., had made a bid of Rs6.785 billion.

While the process of tending for reconstruction of berth 14 to 17A and SRB was going on, berth No 10 and 14 collapsed in August last owing to heavy rains, after which the port authorities changed their strategy. Instead of taking up berths 14 to 17A and SRB, the KPT took up the reconstruction of the collapsed berths and three other adjoining berths in the first phase.

The completion period of five berths (10 to 14) is two years, and the contractors would have to hand over berths in March 2009.

The contractors would have to construct an approximate length of 760 metres of continuous concrete king piles quay wall, including an anchor wall, tie backs and back fill.

In order to supervise the massive construction work of the berths, the services M/s Lyon Associates, were hired, with their local partners among others nominated for carrying out top and site supervision services for reconstruction of berths 10 to 14 at East Wharf.

Sources said work for reconstruction of berths Nos 10 to 14 started after a formal execution of the contract agreement in the first week of last month.

Moreover, design and tenders for reconstruction of berths 15 to 17A and SRBs 1 and 2 are almost ready for invitation of bids from pre-qualifying contractors, sources added.

As the capping beams and structure of the collapsed berths (10 and 14) had fallen into the channel, it also needed to be removed. M/s Ssangyong and Usmani demanded Rs400 million for an additional work of removal of debris. As cost was too high, the KPT tendered work separately and awarded it to Indus Divers at Rs75.5m, sources said.

The delay in awarding and start of reconstruction work at berths (10 to 14) was caused by a complaint received by the PPRA, which started an inquiry, but the matter was finally resolved in February wherein the complaint was withdrawn.