KARACHI, Aug 27: The Gwadar Port Authority (GPA) and Gwadar Port Implementation Authority (GPIA) are shifting the responsibility for signing the novation agreement with Port of Singapore Authority International and AKD thereby causing delay in its operation, official sources said.

Another factor, which was also causing delay in functioning of the strategically located port close to the Strait of Hormuz from where 60 per cent of world oil moves out, was the slow pace of investment by the port operators.

Sources said that despite the fact that the document of novation agreement was ready and it had also been vetted by legal experts, chiefs of both GPA and GPIA are putting the responsibility of signing the agreement on each other.

After the concession agreement was singed with PSAI on February 6, President Musharraf inaugurated the Gwadar Port on March 20, 2007.

However, ever since there had been no investment in Gwadar Port these sources said and confirmed that the PSAI was presently working on a plan for refurbishing one of the old gantry cranes lying at their port for installation at Gwadar Port.

The novation agreement is normally signed to handover the facility (concession) to a substitute entity formed later to meet the ground realities. At the Gwadar Port 80 per cent of development work of the land earmarked for free economic zone is with AKD and responsibility of port operations and marine services lies with PSAI.

Sources said that the National Logistic Cell (NLC) was also being involved in port operations and marine services along with the AKD and for this a novation agreement was necessary.

The Gwadar Port presently has two berths with a quay wall of 600 meter at Eastern Bay of the hammerhead shaped port, which is located about 460km west of Karachi.