Gwadar port dredging to cost five times more

Published
0
The Gwadar Port’s infrastructural work has been completed by the China Port Holding Company at a cost of around $300 million and all four berths are fully operational. — AFP/File
The Gwadar Port’s infrastructural work has been completed by the China Port Holding Company at a cost of around $300 million and all four berths are fully operational. — AFP/File

ISLAMABAD: The government has approved the maintenance dredging of a navigational channel of Gwadar Port with an escalated cost of Rs4.7 billion – a drastic increase from Rs1bn estimated in June 2022 – to avoid any mishap to cargo ships or imposition of penalties from Chinese port operators for business loss.

The navigation channel of the port was last cleared in 2014-15 but had since developed sedimentation of clay, sand and mud and gravelly coarse sand at most of the places. This was resulting in the diversion of bigger ships as the port could handle around 30,000 dead weight tonnage (DWT) ships rather than the designed capacity of allowing 50,000 DWT.

Official sources said the key factor behind the cost escalation was that the Gwadar Port Authority (GPA) and the Ministry of Maritime Affairs had developed the dredging project in June last year at Rs1bn on guesstimates in emergency circumstances when a couple of 50,000DWT cargo ships had to be diverted due to navigational challenges. However, the costs had to be increased based on a proper study conducted by Pakistan Navy followed by competitive bidding. The project is to take off immediately.

The project approved by the government envisaged maintenance dredging of a 4.7-km-long navigational channel, basin and berthing area of Gwadar port. Its internal navigational channel and turning basin design depth is 13.8 meters for safe navigation of deep draft vessels and the berthing area and outer channel is dredged to 14.5 meters to permit safe berthing and sufficient clearance from the bottom in low tides. The channel is designed for the navigation of 50,000 DWT ships during all weather.

Under the fundamental law of the International Maritime Organisation (IMO), it is mandatory to keep safe navigation of vessels in ports. The Gwadar Port Authority (GPA) is required to accomplish the international contractual obligation under relevant clauses of the concession agreement China Overseas Ports Holding Company Ltd (COPHC) to keep Gwadar Port Channel in a safe zone, prevent claims and loss in Gwadar Port business and to meet the requirements of international shipping market which demands safety of navigation and safe port operations.

The maintenance dredging had already been delayed for a few years which “could have serious repercussions in terms of penalties and damages” that might have been imposed on GPA by the Concession Holder due to loss in business or grounding of ships. The project, after completion, is targeted at enhancing port efficiency by facilitating safe and quick inward and outward vessel traffic, without having to wait for the tide or face berthing difficulties due to inadequate depth of water.

It may also enhance revenues of the port in the shape of an increased share from port charges.

Published in Dawn, February 8th, 2023

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Danger ahead
Updated 08 Aug, 2026

Danger ahead

PAKISTAN has already paid a heavy human price this monsoon, even as another dangerous spell approaches. NDMA figures...
Israeli impunity
08 Aug, 2026

Israeli impunity

ANY hope that Hamas’s decision to disarm would lead to a breakthrough has been dashed for one simple reason:...
Flawed investigations
Updated 08 Aug, 2026

Flawed investigations

An inaccurate record of a victim’s wounds hinders the dispensation of justice. Medical examiners in such a critical area cannot cut corners.
Terrorist havens
07 Aug, 2026

Terrorist havens

DESPITE the use of both carrots and sticks by the international community, the Afghan Taliban refuse to cut their...
Mineral wealth
Updated 07 Aug, 2026

Mineral wealth

Any future agreements involving critical minerals must be subjected to rigorous legal, financial and technical scrutiny.
Growth denied
07 Aug, 2026

Growth denied

THE Sindh government’s agreement with the World Bank to combine health, nutrition, sanitation, social protection...