ISLAMABAD, April 2: Pakistan and Chinese authorities have agreed to establish a company under the Pak-China Sost Port Authority for transportation of cargo between the two countries.

An understanding in this regard was reached at the fourth board meeting of the Pakistan Sost Port (Pvt) Ltd, presided over by the secretary of Kashmir Affairs and Northern Areas, Rasool Bakhsh Baloch, on Monday.

The proposed transport company would carry goods from Pakistan to china and vice versa, with a fleet of 500 trucks.

An official announcement issued here said both the sides reached an understanding on some thorny issues, including replacement of directors and appointment of deputy managing directors, besides finalising procedures for an amicable handling of all affairs pertaining to business and management of Sost Dry Port.

The meeting was a follow up of the MoU signed between the Pakistani and Chinese sides, respectively, of the dry port.

The Chinese side also changed two of their old directors and brought in new directors for a period of three years -- namely Yuan Jian Min, Chen Ming Xing, Wang Ping and Hu Enzu.

The Pakistani side introduced one new director Raja Shabaz Khan, and now Pakistani side comprises a total of three directors -- Prince Salim Khan, vice-chairman of the board, Raja Shabaz Khan and Barkat ullah. Mr Barkatullah was selected by the Sost land owners and elected in the board unanimously.

The meeting also appointed Emman Shah who has been nominated deputy MD from the Pakistan side and Hu Enzu from the Chinese side.

It was agreed in the meeting that banking procedures will be practiced with co-signatures from both the Pakistani and Chinese sides; and management responsibilities will be done with the concurrence of the MD and deputy MD and all high level decisions will be made with the consent of the chairman and vice chairman.

The meeting was informed that audit of accounts has been conducted for 2005-2006 and will be disbursed to shareholders.

It was decided that legal action would be taken against any former employee involved in disturbances at the port. Moreover, rules and regulations were agreed upon and signed for daily procedures and bank practice.

Master plan for extension of Sost Port and making it a model economic city was presented by the chairman.