ISLAMABAD, Feb 25: Prime Minister Shaukat Aziz on Saturday approved a proposal to initiate negotiations with the Dubai Port World (DP World) for appointment as operators for the Gwadar port.

Presiding over a meeting of Gwadar Port Policy Board (GPPB), the prime minister constituted a team from ministries of finance, law, planning and development division and the ministry of ports and shipping to negotiate the terms with the DP World.

The DP World is an international experienced management team, which was maintaining 17 terminals in different countries since 1972.

The meeting was attended by Chief Minister of Balochistan Jam Mohammad Yousuf, Senior Minister of Defence Rao Sikandar Iqbal, Minister for Ports and Shipping Babar Khan Ghouri and other senior officials will attend the meeting.

A list of several international companies was worked out by the GPPB to entrust it to independently operate the Gwadar port. Of these Mr Aziz approved the DP World for the purpose.

The meeting was informed that the Gwadar port will be functional by the middle of this year mostly in June after the completion of additional dredging of the channel to 14.5 meters making it the deepest port of the country and the trans-shipment port for the region.

An official announcement said that the dredging of Gwadar port channel to 14.5 meter, which has been undertaken by a Chinese company would make it a regional hub. It would enable it to receive the mother vessels. The cargo dropped by the mother vessels would be taken to Karachi and other regional ports by the feeder vessels or trucks.

Mr Aziz also reviewed the future planning of Gwadar port, master plan of Gwadar port and its related infrastructure, East Bay Express Way, Gwadar Port Civil Centre.

He asked the chairman Gwadar Port Authority and Ministry of Communications, Ministry of Ports and Shipping to ensure timely implementation of projects.

Mr Aziz said the completion of Gwadar port would generate substantial economic opportunities for Balochistan and usher in a new era of development and prosperity for the people there.

He said it would also contribute to the mineral development of Balochistan and the province would use the port to fully utilise its mineral development potential.

An official said the port will generate foreign exchange earnings as the vessels registered under foreign flags are required to pay some portion of charges in foreign exchange through their local agents for cargoes.

Gwadar has an edge over Port Salalah of Oman and Iran’s proposed upgradation of Port Chah Bahar. However, Gwadar will have to compete with both the foreign ports.

Gwadar was expected to serve as Mother Port at the strategic location opposite to Straits of Hormuz and on the mouth of Persian Gulf and provide port, warehousing, trans-shipment and industrial facilities for trade with over 20 countries including Gulf states, Central Asian Republics, Iran, East Africa, Red-Sea countries and North West parts of the Peoples Republic of China and India.

A special industrial development zone with an area of 4,000 hectare has been proposed for setting up various industries. The export processing zone has also been planned for assembling plant and other industries. Oil storage yard and refinery has also been proposed in the north of Gwadar town.