KARACHI, Dec 27: The International Finance Corporation (IFC) will provide more than $15 million for the third phase of the Pakistan International Container Terminal (PICT). The total cost of increasing the terminal’s cargo handling capacity is about $24 million.

A signing ceremony was held here on Tuesday in which IFC’s acting director Middle East and North Africa, Michael Essex and PICT’s chairman Capt Haleem Siddiquie represented their respective organizations.

This is in addition to the previous funding provided by the IFC in PICT. The corporation had previously provided $9.25 million in 2003 for the first phase of the terminal the Karachi Port.

The new funding from the IFC would be used by the PICT for acquiring additional container handling equipment and increasing the capacity of the stacking yard.

PICT’s expansion is expected to be completed by December 2006.

In 2005, the terminal handled a cargo volume of more than 280,000TEUs, showing a growth of over 200 per cent over 2004.

Appreciating PICT’s performance during the past four years, Mr Essex said that the IFC was interested to invest in local infrastructure projects and increase its cooperation with institutions which were well-managed and transparent.

He further said that the IFC would continue to support private participation in infrastructure projects in Pakistan.

Chairman KPT Vice-Admiral Ahmad Hayat, who witnessed the signing ceremony, said: “PICT is a jewel in KPT’s crown. The port authority will extend its full support as the Karachi Port’s growth is directly linked with the growth of PICT.”

He said that the KPT’s management was committed to modernize the Karachi Port, enabling it to keep its growth in line with the fast growing economy of the country to meet future challenges.

Mr Hayat dispelled the impression that the KPT was competing with other ports of the country and said: “My team is working hard to update the port’s capacity and operations in line with other modern ports of the world and it is wrong to say that it is doing this at the cost of Gwadar or any other port.”

The KPT chief said that the port had become more efficient, adding previously berth occupancy was 200 per cent and annual cargo handing was at around 10 million tons. Currently, the occupancy had declined to 50 per cent with cargo handling capacity rising to more than 25 million tons, he said.

He said the port had undergone tremendous changes in all its segments of operations by mechanising and computerizing its departments and by removing bottlenecks at every stage.

Capt Haleem Siddiqui, chairman PICT, and Francisco Tourreilles, director of the IFC’s infrastructure department, also spoke on the occasion.