ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) late Wednesday night approved the outsourcing of the Bulk and General Terminal at Karachi Port, East Wharf, to Abu Dhabi Ports (ADP) for 15 years.

Federal Minister for Finance and Revenue Ishaq Dar chaired the meeting. Maritime Affairs Minister Syed Faisal Ali Subzwari, Commerce Minister Syed Naveed Qamar, Power Minister Khurram Dastgir Khan, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pahsa, Secretary Maritime Affairs, Secretary Law & Justice, Chairman KPT and team and other senior officers attended the meeting.

The CCoIGCT reviewed the recommendations of the negotiation committee which held its deliberation in two sessions on Aug 8, for the development of the bulk and general cargo terminal.

The committee approved the recommendations of the negotiating committee subject to conditions that the concessioner will pay $25 million non-refundable/non-adjustable upfront as goodwill.

The UAE government-owned firm will pay another $25m upfront adjustable against revenue sharing in the next seven years with $3m per annum for the first five years and $5m in the next two years.

For modernising the terminal, the concessioner will start development work in September. It was also decided that all liabilities regarding the Karachi Dock Labour Board will be the responsibility of ADP.

The committee recommended the commercial agreement as amended to the federal cabinet for its approval.

Published in Dawn, August 10th, 2023