RAWALPINDI, March 20: The government has decided to establish a coal port with complete infrastructure for handling and transportation of imported coal at a green-field site in the coastal area of the country.

Official sources told Dawn that Pakistan Industrial Development Corporation (PIDC) has been assigned the task of arranging the feasibility study for establishing the coal port. Pakistan has a growing need for energy to support its high economic growth rate, which has averaged more than 7 per cent over the last 5 years.

To meet the shortfall in energy projected at more than 5,000 mw by 2010, the government is promoting the use of coal for power generation and intends to develop local coal deposits and set up infrastructure for the import of coal.

The establishment of a coal port or terminal will facilitate setting up coal-based industries such as power plants, cement and steel manufacturing units in an adjoining industrial zone and will ensure supply to other major users of imported coal in the country, sources added.

The objective of the feasibility study is to ascertain potential local demand for imported coal by power, cement, steel plants and other major users; develop a master plan and design of the coal port/ terminal along with infrastructure and its allied facilities for handling of imported coal in bulk quantity to cater to the local demand.

The study will identify suitable green-field locations in the coastal area for setting up the port; examine technical, financial and economic viability of the project; propose an action plan and strategy to develop and operate the port; and develop a master plan of an adjoining industrial estate to house coal based industry.

The study will be carried out in two phases. Under the first phase, an assessment of the annual demand for imported coal over the next fifteen years will be carried out.

It will take into consideration all relevant aspects, including the existing demand and supply position of coal; coal imports and its handling facilities; local coal deposits and projected local supply; and the government plans and policies for the development of coal reserves.

The feasibility study will also determine and recommend size and capacity of the coal port and identify major components like requirement of land, utilities and major support facilities and for adjoining industrial estate of 5,000 acres for setting up coal-based industries.

The green-field locations identified are Keti Bandar, Khalifa Point and other potential sites in the coastal area for setting up the coal port. The study will recommend the best two options based on relevant factors, including suitable water depth and other hydrological conditions, availability of land and infrastructure facilities and connectivity to the outside transport network, scope for future expansion and closeness to national electric grid station and nearness to urban industrial areas.

Moreover, the study will also cover low capital, operating and management costs of the port and cost effective handling, storage and transportation of imported coal.

The second phase of the feasibility study will develop a master plan and design of the coal port and adjoining industrial zones and its infra-structural facilities.