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Sea Port and Dry Port Updates.

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Havelian dry port on track for completion by year-end​

February 4, 2023




ISLAMABAD – The proposed Havelian dry port in the Haripur district of Khyber Pakhtunkhwa will facilitate the freight trade between Pakistan and China.

The dry port is a proposed project of Pakistan Railways, and will be financed through the Chinese government’s concessional loans.

The port will have railhead facilities, high speed/capacity stock, an off-dock terminal for handling bonded import/export containers to meet the demand of future freight traffic under the China-Pakistan Economic Corridor. It will initially serve as a dry port and container terminal for products arriving by road from China via the Karakoram Highway.

According to Hassan Daud Butt, chief executive officer of Khyber Pakhtunkhwa Board of Investment, the development of Havalian Dry Port would spur growth and prosperity in the region by providing jobs to the locals and raising their living standards. “The project will attract massive domestic and international investment, reducing unemployment, increasing per-capita income, and improving the quality of life for local residents.”

He informed WealthPK that technical and financial aspects of the project had been fine-tuned and the project was likely to be launched during this year. He said the dry port project would help ‘transform’ Pakistan’s economy. He said the project would cost $65 million, covering development of the dry port as well as upgradation of Main Line-1 (ML-1), a 682-kilometre-long railway line linking Havelian to the Chinese city of Kashgar.

Daud Butt said the railway line will provide access for goods from China and other East Asian countries to ports in Pakistan, adding the Havelian dry port would ensure uninterrupted logistics flow of cargo on the CPEC route. He said the Havelian dry port will be one of the key dry ports in Pakistan as it is located at the most important cross-sections, ensuring overall transportation connectivity.

Daud Butt said the project was supposed to be completed in 2022, but delays were caused due to delay in feasibility study and lack of funds as no budget was announced for the project in the Public Sector Development Programme (PSDP) 2021-22.

He said now for the project’s initial launch, a budget of Rs5,000 million has been provided in the PSDP 2022-23, including foreign aid of Rs100 million. Daud Butt said the project would help Pakistan in many ways, as in addition to boosting trade with China, it will also create significant commercial and economic opportunities.

“The project will reduce freight costs, save foreign exchange, and help promote the country’s business and tourism sectors.”
 
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About nine ships carrying 450,000 metric tonnes of imported wheat will arrive at Gwadar port in the first week of March, set to launch massive trade boost at Gwadar Port early next month..


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Gwadar Port proved its global expertise by handling all Nine ships​

Staff Reporter, Gwadar Pro
May 4, 2023

An official of Gwadar Shipping Clearing Agents Association (AGSCAA) told Gwadar Pro that Gwadar Port has surpassed other ports in Pakistan in shipping and processing of wheat. He said that Gwadar port is more economical than other ports like KPT and Qasim as the latter two ports are always congested and ships face frequent demurrage and high storage charges.

There are no demurrage and storage charges at Gwadar Port, along with fastest stevedoring services, he added.

Since the anchoring of the first ship in the first week of March, Gwadar Port has witnessed zero handling loss for wheat export and shipment, all loading, off-loading and transportation being done by Pakistani manpower.

Instead of manual handling, Web Based Customs Clearance System (WeBOC) was used for processing wheat from Gwadar port. The web-based customs clearance system at Gwadar Port ensured automation, standardization and harmonization of all trade procedures and logistics services under the Pakistan Single Window (PSW).

China Overseas Ports Holding Company, Trading Corporation of Pakistan, Pakistan Agricultural Storage and Services Corporation Limited, Pakistan Customs and National Logistics Cell, Gwadar Free Zone, and GITL have worked in coordination to ensure that That all work is spot on.

According to an official of Gwadar International Terminals Limited, the import of wheat using Gwadar Port is a new milestone as it will boost commercial activities in Gwadar.

Representatives of the Ministry of Ports and Shipping suggest that after the successful handling of wheat, the government will use the port for more international shipments. He revealed that the government intends to support Gwadar port by ensuring exports and imports, cargo delivery and Afghan transit trade.
 
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Newly-launched night navigation increases FOTCO’s terminal capacity by 30pc

  • Port Qasim, FOTCO successfully dock first-ever oil vessel at night
Bilal Hussain
May 12, 2023

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Fauji Oil Terminal and Distribution Company (FOTCO) in collaboration with Port Qasim Authority (PQA) on Wednesday commenced night navigation of oil vessels at the FOTCO terminal, a move that increases the company’s capacity by 30%.

Oil vessel ‘MT. Ardmore’ carrying motor gasoline berthed at FOTCO by Port Qasim Authority pilots under night navigation protocols. The milestone was achieved through joint studies and pilot simulations, as well as alignment of berthing standard operating procedures (SOPs).

FOTCO termed the development as a major breakthrough in the oil-import handling operations.

“Night navigation enhances FOTCOs’ capacity to handle petroleum vessels by up to 30%, which now translates into 18 vessels in a month,” FOTCO General Manager Adnan Samdani told Business Recorder.

It will help resolve port congestion and save heavy demurrages faced by importers including Oil Marketing Companies (OMCs) during peak season.

“The country’s growing needs of petroleum products coupled with increasing reliance on imports warranted an efficient functioning of port infrastructure across the country,” Samdani added.

With FOTCO and PQA handling over 70% of imported finished petroleum products, efficient operations at the port and terminal are critical for the country’s energy security.

“Further efforts in rationalising berthing plans, vessel performance, and maximising cross country pipeline utilisation through FOTCO will result in ensuring longer-term sustainable, efficient and cost-effective supply of petroleum to the end consumer.”

Samdani said that currently, demand for petroleum products is depressed, but the decision to enhance the capacity is a strategic one, and serves a longer-term view.

“28 years ago, when this terminal and this expensive jetty were built, there were only furnace oil imports of around 3 million tons. The decision was strategic by the Fauji Foundation and now around 10 million tons of all oil products are managed through this terminal,” he added.

Company Secretary and Brigadier Noor Ul Hassan (retd) said FOTCO has had zero incidents of oil spills or any other accidents in its 28-year history.

FOTCO is a joint venture of Fauji Foundation and Infraavest Ltd. of Singapore, owns and operates a marine oil terminal at Port Qasim. Costing $100 million, it was established in 1995 and has since handled over 180 million tons of oil.

The terminal is capable of handling 10 million tons of oil per annum at the existing jetty, whereas, through capacity optimisation initiatives, excess throughput of 2 million tons can be accommodated.

FOTCO has been able to achieve a turn-around time of 24 hours, a record for such operations in Pakistan. It is the only terminal equipped with the most modern Automated Jetty Monitoring System in the country, the company says.

“While the company has aggressive expansion plans in place to expand port handling facilities, it is still prudent to maximise utilisation of existing infrastructure through addressing existing bottlenecks including vessel pumping rates, larger parcel size and optimise planning and SOPs,” said Samdani.
 
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UAE’s AD Ports signs deal with KPT to operate Karachi Terminal

  • Joint venture between Kaheel Terminals and majority shareholder AD Ports Group to invest $220mn in new concession and growth capital expenditure over the first 10 years
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June 22, 2023

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Governor Sindh Kamran Tessori along with Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari inaugurating the Karachi Gateway Terminal Limited at Karachi on June 22, 2023 Courtesy: PID

AD Ports Group, a UAE government-owned maritime and logistics provider, on Thursday announced the signing of a 50-year concession agreement with Karachi Port Trust (KPT) to operate the Karachi Gateway Terminal Limited (KGTL).

Under the terms of the agreement, a Joint Venture (JV) will be formed between AD Ports Group and Kaheel Terminals.

AD Ports will be the majority shareholder, investing $220 million in new concession and growth CapEx over the first 10 years. Meanwhile, Kaheel is a UAE-based company formed to manage, operate and develop KGTL at berths 6 to 9 at Karachi Port’s East Wharf.

“The JV will undertake significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026,” read a statement.

“The development works will include deepening of berths, extension of quay walls, and an increase in container storage area.”

“As a result, the terminal will be able to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) and container capacity will increase from 750,000 to 1 million TEUs per annum,” the statement added.

The statement noted that the terminal’s operations are all dollarised with no foreign exchange exposure to the Pakistani Rupee. Historically, the terminal has been generating revenue of around $55 million and EBIDTA or around $30 million annually, it said.

“This agreement has the potential to unlock a new chapter of growth and progress for both the UAE and Pakistan,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.

Al Sahmisi was of the view that the agreement would strengthen ties with key trading nations and leading to increased economic growth and prosperity.

Meanwhile, Faisal Subzwari, Pakistan Minister for Maritime Affairs, said, “The signing of this agreement underscores both our great nation’s shared vision for the development of port infrastructure and sets the stage for a prosperous global maritime ecosystem.”

Last month, AD Ports Group signed a Memorandum of Understanding (MoU) with the KPT.

The MoU encompassed a wide range of initiatives and projects aimed at enhancing port infrastructure, optimizing operational efficiencies, and embracing digitalization.
 
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Gwadar Port: 5 lakh tons of silt scooped out​

By Yasir Habib Khan
Sep 30, 2023

GWADAR, - Since the project's inception in March 2023, nearly 0.5 million (5 Lakh) tons of silt have been excavated from the bed of the navigational channel and anchorage area at Gwadar Port.

The project is set to be completed in 12 months. Dawood Baloch, the Gwadar Port Dredging Plan Project Director, communicated to Gwadar Pro that China Harbour Engineering Company Ltd (CHEC) has successfully removed 5 lakh tons of silt since the desilting process began in March.

This desilting process aims to restore the original depth of the navigational channel at Gwadar Port, allowing heavyweight ships to navigate efficiently. This restoration will ensure the seamless movement of various types of vessels, facilitating easy docking without interruptions. Another official from Gwadar Port Authority (GPA) stated that the plan is to reclaim the natural and original operational depth of 14.5 metres at Gwadar Port, at a cost of Rs 4.7 billion.

He expressed satisfaction with the operation's pace. The official added that the project, titled “The Maintenance Dredging of the Navigational Channel of Gwadar Port,” will be completed in 12 months per the agreement signed between CHEC and GPA.
 
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Gwadar Port receives 34000 tons fertilizers for export​

Yasir Habib Khan
Oct 5, 2023

Gwadar Port receives 34000 tons fertilizers for export


GWADAR - As a fresh impetus to the Gwadar transshipment drive, Gwadar Port has received a mega vessel loaded with 34,000 tons of DAP fertilizers to be processed and discharged to Afghanistan as per the Pakistan-Afghanistan transit trade deal.

The Pacific Integrity, a vessel loaded with 34,000 tons of DAP fertilizers, arrived at Gwadar Port on the morning of October 3rd. The fertilizer is imported by a joint venture of Agven Private Limited and KB Fertilizer, two private enterprises registered in the Gwadar Free Zone area.

An Agven official told Gwadar Pro that after offloading the fertilizers, the next step is to pack a huge quantity of fertilizer at a warehouse jointly sub-leased by both entities in the Gwadar Free Zone. After the packing process is completed, all packets will be transported by trucks to Afghanistan, he added.

This is the second consignment delivered to Afghanistan in 2023. The last time during the current year, a private sector consignment of 20,000 tons of DAP fertilizer was sent from Gwadar Port to Afghanistan on May 31, 2023.

This batch of DAP fertilizer was imported from Australia. DAP is used in various industrial processes, such as metal finishing. It also improves crop yield besides the development and growth of flowering plants or leafy plants.

In 2022, Gwadar Port processed a private sector consignment of 8,000 tons of DAP fertilizers and transported it via road to Afghanistan. In 2021, a total of 500 tons of fertilizers were shipped out of the port’s warehouse by a fleet of Pakistani trucks from Gwadar Port.

In April 2020, the federal government allowed the import of fertilizers at Gwadar Port and onward transit to Afghanistan through bonded carriers — insured and sealable trucks with a tracking device.

The Ministry of Commerce (MoC), at the request of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), the Gwadar International Terminals Limited, and other stakeholders, issued an Office Memorandum (MO) titled ‘Implementation of the Import and Export Policy Orders through Shipping Procedure and Instructions for the Operationalization of Gwadar Port’.

The petitions of all stakeholders were examined in the light of the Afghanistan-Pakistan Transit Trade Agreement (APTTA) of 2010, specifically Article 21(1)(c) which allows transit of "bulk cargo (not imported in containers — like ship load) in open trucks or other transport units."

Economist Shahid Hussain told Gwadar Pro that Pakistan can reach its true potential for transshipment when China, Afghanistan, and other Central Asian economies are connected with Gwadar through land routes.
 
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Power distribution work starts for Gwadar Free Zone North​

By Yasir Habib Khan
Oct 26, 2023

GWADAR - Power distribution work has commenced for providing 5 Mega Watts (MW) of electricity to Gwadar Free Zone North by erecting power polls and laying electricity wires in two phases simultaneously. It will take two months to complete the work.

In the first phase, the Gwadar Port Authority (GPA) has started installing power infrastructure from the grid station to the perimeter walls of Gwadar Free Zone North. In the second phase, local company SIGMA Engineering Ltd has started laying the electricity distribution system from the walls of Gwadar Free Zone to the buildings of various industrial sites.

SIGMA Engineering Ltd has been outsourced by China Communications Construction Company (CCCC) Limited, a GPA official told.

"After completion of the entire project, the per unit power tariff charged to factories will be around Rs 57 according to the government rate prescribed for industries. Currently, generator-based electricity is being provided to all operational factories in Gwadar Free Zone North temporarily," he added.

Progress was made after the successful joint feasibility study conducted by Quetta Electric Power Supply Company (QEPSC) and China Overseas Ports Holding Company (COPHC).

The Deep Sea Port sole grid station was established in 2019 exclusively for Gwadar port and Free Zone through 3 feeders. The grid station will provide electricity from three sources - the national grid station of Quetta, Gabd-Remdan on the Iran border, and Nag-Besima section on another border with Iran.
 

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