ISLAMABAD, Aug 17: While terming the agreement between Dubai Port World and the Port Qasim Authority for establishment of second container terminal at Port Qasim 'historic', Prime Minister Shaukat Aziz said Pakistan being a growing economy needed better means of communication and good infrastructure to support its domestic, external and transit trade activities.

Dubai Port World (DP-World) will invest $211 million for setting up 2nd container terminal at Port Qasim on built operate and transfer (BOT) basis. DP-World CEO Mohammad Sharaf and Port Qasim Authority chairman Vice-Admiral M. Asad Qureshi signed the agreement here on Thursday in presence of Prime Minister Shaukat Aziz and Ports and Shipping Minister Babar Khan Ghauri.

The prime minister said Pakistan being at the cross-roads of South Asia, Central Asia and the Middle East offered greater trade and investment opportunities, including transit trade. He said with two seaports already functioning and completion of Gwadar Deep Sea Port by the end of this year, Pakistan would truly serve as transit trade corridor for the region.

Mr Aziz said Pakistan and the United Arab Emirates enjoyed close trade and cultural relations with common faith and today's agreement was manifestation to the fact of growing interest and investment by Arab and Gulf Cooperation Council (GCC) countries.

The prime minister said the government would welcome investment in all fields of trade and economy with a level-playing field for local and foreign investors.

Mr Aziz, however, stressed on quality and standard saying "we are keen for competitiveness and productivity at the global level."

The prime minister hailed the ministry of ports and shipping, the Board of Investment and other officials concerned for finalizing the agreement with DP-World and said it would not only yield benefits for Port Qasim but would attract more investment.

The DP-World CEO said his company was encouraged by a visit of the ruler of Dubai to Pakistan and decided to establish the 2nd container terminal. “The government of Pakistan has given us full backing and support in this project.”

Mr Sharaf also appreciated the quick process of the agreement and said: "We have negotiated with various countries, but this was one of fastest negotiations." He said DP-World would also make investment in the development of an industrial zone near Gwadar.

The project, which is the highest ever foreign direct investment in the port sector, and to be completed in three phases with an overall capacity of 1.15 million TEUs, will enhance the total TEUs capacity of the port to about 1.75 million.

Apart from doubling the container handling capacity, the 2nd container terminal will bring Rs60 billion earning in direct revenue for the port in 30 years.

Under the agreement, the first container terminal has also been converted into BOT from BOO, besides the rate of per move of royalty enhanced to $9.2 from the previous $4. In addition to $211m in 2nd container terminal, DP-World has an investment of $100 million for first container terminal. Further investment of $60 to $100 million is also expected for channel dredging. — Online