Karachi Port Offers New Opportunities

7/25/2019 Karachi Port Offers New Opportunities

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Karachi Port offers new opportunities

Ports play an important role in the Logisticssupply chain and provide interfaces for the

change of mode of transportation of commoditiesfrom sea to land through rail, trucks, pipelines.

Ports are recognized as the springboards for

economic development of the hinterland. This

implies that Ports must look beyond the narrow

limits of the port location and must have fast,

rel iab le fl ex ibl e an d co st -friendly intermodal

connections with inland corridors.

The Indus corridor starting with the two majorports in the south that handle 95% of Pakistan s

external trade and proceeding north carries almost 65% of Pakistan s total

freight traffic. The corridor supports an area which contributes to almost

85% of Pakistan s GDP. It is the gateway to the sea for landlocked

Afghanistan and has the potential to be an important trade corridor for the

Central Asian States.

Karachi Port is mindful of

logistic supply chain, which is thestream of processes of moving

goods and services f ro m t he

customer order through the raw

materials stage, supply, production,

and distribution of products to the

customer. Logistics is that part of

supply chain process that plans,

implements , and contro ls theefficient forward and reverse flow and storage of goods, services, and

related information from the point of origin to the point of consumption in

order to meet customer s requirements (Council of Logistics Management,

U.S.A). These definitions sound very scholarly. To put it simply, the

Logistics Service deals with 7Rs: Right products, Right amount, Right

place, Right time, Right condition, Right price and Right information.

Opportunities of Logistics Services lie in improvement of complete

logistics system i.e. the infrastructure ( ports, railways, road, warehousing,

dry ports, pipelines etc.), the services ( Shipping and port services,


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trucking, railways, handling, warehousing, customs, insurance, banking,

Inland Container depots and freight forwarding) and the procedures(

legislation, regulation, administration, documentation, data etc.).

Present Government Policies support the growth of shipping, freight

forwarding, distribution, trucking, railroad transport, port and terminal

operation. Pakistan s transportation

system is improving. Incentives are

there to build 21st century

expressways and state-of-the-art rail

and air links.The Government has

launched an initiative to establish an

efficient North-South National Trade

Corridor. The programme includes

further improvement of existing high

ways with building of warehousing,

cold storage, customs, immigration and electronic data processing

facilities at the border crossings. Karachi Port is already providing

concessionary rates for in-transit cargo. A Joint Kyrgyz- Pakistan

Ministerial Commission has been meeting

regularly to make the transit route to thatcountry most competitive.

Karachi Port is making itself

responsive to market demands. KPT has

identified some key capital projects that will

aid it to regain its niche as a Regional hub

while meeting the needs of land locked

countries. These projects include the development of a Cargo Village in

our Western backwaters over anarea of 1500 acres.

The reconstruction of KPT s

2.75 KMs in length berths to a

depth of 16 meters will provide

deeper berths for ships. The most

important project is the

development of ten deep draft

berths for handling Containers. At

a depth of 18 meters, with 600


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Cargo Village in KPT s Western backwaters

meters wide channel and over 3.5 KM

quay wall, this will be one of the most

modern Container Terminal. This

US$1.6 billion state of the art

container handling complex right atthe entrance to the harbour is called

the Pakistan Deep Water Container

Port (PDWCP). With the planned 18m

depth along side, it will be capable of

taking the biggest container ship

presently operating. The project is being carried out in phases and on

public-private partnership (PPP).

Phase I is USD 600 M project, whichwill include 4 berths with 1500 m

quay wall. Concession agreement

with M/s Hutchison Port Holdings,

Hong Kong has already been signed

for the development of the Container

Terminal on four berths. The

dredging and reclamation contract

has been signed with CWE (China

International Water and Electric

Company) and reclamation works

started. The KPT awarded contract for Dredging and Reclamation Works to

M/s CWE of China and the project ground breaking ceremony was

performed by the Prime Minister of

Pakistan, on 18th April 2009 for start

of Dredging and Reclamation

Works. Under the agreement, the

CWE will carry out 32 million cubic

meters of dredging and 8 million

cubic meters of reclamation works.

The Container Terminal will have

both the road and rail hinterland

connections which will also include

connection with the proposed

Cargo Village at Western Backwaters. Contracts for the construction of

quay wall and marine protection works are being awarded

Prime Minister of Pakistan, Syed Yousaf Raza

Gilani inaugurated start of Dredging and

Reclamation Works on 18th April 2009


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PORT BRIDGE OVER CHANNEL CROSSING

PICT is among one of the mostfavoured terminals of Karachi Port

users.

Karachi Port has initiated many port connectivity projects. The

Connectivity to M-10 (Northern Bypass) and Lyari Expressway as well as

internal road and rail links of the Cargo

village have been planned. Similarly, the

Karachi Deep Draft Port will be linkedwith railway and a cross channel bridge

connecting the new deep draft terminal

with Manora Island, Cargo Village and

Northern Bypass.

Performance of Karachi Port Trust

during the fiscal year 2008-09 registered

a healthy and positive trend despite

world wide recession. Total cargo handled during 2008-09 was a recordhandling of 38.7 M tons which

included 26.96 M tons dry cargo and

11.77 M tons of liquid cargo. The

cargo growth has been 6.5% over last

five years. The total exports cargo

handled this year closed at 13.364

million tons which reflects a growth

of 14.47% made by Karachi Port when

compared with cargo handled during

preceding year. Export of bulk cargo

through Karachi Port was recorded to be 5.471 million tons, which is a

massive increase of 28.94%, as compared to the previous year. This is yet

another achievement of Karachi Port Trust. As regards the container

handlings, the Karachi Port had record handling of containers in the

concluding financial year as 1.250 million TEUs (Twenty Foot Equivalent

Units) were handled.

Pakistan International Container

Terminal (PICT) is a US $ 75 million project in

private sector. This Terminal at Berths 6-9

East Wharf has 600 m quay wall with - 13.5 m

depth and an area of 207,000sq.m.The

terminal s planned capacity is 450,000 TEUs.


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Karachi International Container Terminal (KICT) has 973 m long

berths and handling capacity of

700,000 TEUs. The terminal has an

overall area of 260,000sq.m with total

foreign investment of US$ 120million. Now s hips upto 12 M draf t are

being ber thed.

Karachi Port is modernizing the

port environment to facilitate private

sector investment and to strengthen

its exporters competitiveness.Port

allowed construction of silos by

private sector. Millions of dollarInvestment was made by M/s Lucky

Cement, it is a shining example of an indigenous private sector investment,

of which Karachi port is proud of. Four cement silos of 24000 ton total

capacity have been built by M/s Lucky Cement behind the wharves for

stocking cement and then transferring this cement pneumatically from

silos to ship. This ensures fast turn

around of ships besides making the

cement exports competitive. KPT

talks of solutions and implementation

while offering investment

opportunities and circumventing

logistics challenges. The Cargo

Village, the reconstructed and

deepened berths, the Karachi Deep

Water Port, all offer umpteen

opportunities and solutions to

logistics challenges. Now it is upto our

valued investors to take this challenge.

As the world becomes a smaller

place, the Internet is enabling

companies of all sizes to develop new

online business models, which means

improving and altering the ways in

which companies use to operate and

interact with business partners,

Completion of KICT Phase III and tenyears of Terminal Operation in Karachi

Port is celebrated.

Senator Babar Khan Ghouri addressing the

gathering at inauguration of Silo Operation.


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customers and suppliers. The new possibilities for processes (e.g. order,

entry, distribution, on-line payment) as well as dealing with the technical

issues have revolutionised the logistics industry. E-logistics has eliminated

intermediaries (such as wholesaler or retailers) and also fosters the

emergence of new players like logisticians, whose role is to adapttraditional logistics chains to take into account the requirements of e-

business. In the next few years, successful enterprises will restructure

their organization, process and technology infrastructure for successful e-

business execution.

Increasing globalisation brings

both challenges and opportunities to

the port industry. Port Authority and

Container Terminals at Karachi haveimproved Shipping Logistics by

integrating electronic transaction and

processing. This has increased

communications efficiencies across

multiple organizations and facilitated

faster import and export processes.

Projects have been implemented to improve overall efficiency of Pakistani

Customs Agencies through the Customs Administration Reform (CARE)

and PACCS (Pakistan Customs Computerized System), which is a one

window system and that window may open - any time at any place over the

web - depending on your own choice. As we continue on

the journey to internationalization we have to meet the

challenges of our global world and our client's logistics

requirements. In view of the above situation, the

government, in a true democratic spirit, took all

stakeholders on board and has

devised a strategy to go all out to

remain firm in these difficult

economic times, keep focused on

our strengths, and convert

challenges into workable

opportunities. Trade Policy 2009-12

aims to set the country on the path

of sustainable high economic growth through exports.


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The logistics opportunities are going to grow as Govt. of Pakistan

moves forward to implement National Trade Corridor Improvement

Programme (NTCIP). A National Trade Facilitation Strategy (NTFS) has

been prepared by the Govt. which has a time line Action Plan for

implementation by concerned ministries, organizations and relevantstakeholders.

Consensus has been developed between concerned ministries on

Accession to TIR Convention on International Transport of

Goods Under Cover of TIR Carnets and the process is at final

stages. It is expected that the TIR system will facilitate

customs and transit through landlocked countries of Central

Asia.

Certification Rules and Code ofConduct for Freight Forwarders have

been approved by our Govt. and soon a Mechanism

to monitor Freight Forwarders Performance will be in

place.

A new Afghanistan-Pakistan Transit TradeAgreement has been drafted which will replace Afghan Transit TradeAgreement of 1965, after completing negotiations with Afghanistan (which

have started with the 1st meeting of Afghan- Pakistan Joint Working Groupheld in Islamabad on May 14, 2009) and signing of the Agreement beforeend 2009. A quad-lateral transit trade agreement with CAR countries isbeing finalized.

The government of Pakistan realizing the importance of logistics hasstarted to reform complete logistic system i.e. infrastructure, services andprocedures not just ports, rail and roads. We are ever mindful that therewill be as many opportunities as there will be challenges, and we are sureof one thing - the future belongs to those who believe in their dreams.

(writer is Mrs. Nasreen Haque, Chairperson, Karachi Port Trust)

Karachi Port Offers New Opportunities

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