Karachi Port Trust (KPT):

The steady and continuous progress made by KPT has helped boost the national economy. The KPT established an annual cargo handling record of over 32.3 million tons during 2005-06 showing a sizable growth of 12.8 percent over 2004-05. However, during the first nine months of the current fiscal year, the port handled a cargo volume of 22.4 million tonnes as compared to 24.6. million tonnes handled in the corresponding period last year registering a decline trend of 8.7 percent. This is mainly due to a fall in imports of fertilizer by 49 percent, sugar by 38 percent, iron scrap by 60 percent and crude oil by 16 percent which led to an over all decrease of import cargo by 12 percent during first nine month of current financial year. However, the volume of export increased by 4.1 percent during first nine months of current fiscal year.

The existing port facilities appear to be inadequate to handle the growing cargo at the port. In order to address these constraints, the KPT has launched a number of projects, which are at different stages of execution. A number of projects have been formulated for phased implementation on a BOT basis covering various activities in port operations.

The KPT has commissioned the project titled “Karachi Interval Container Terminal (KICT)”. The project is already operational at the west wharf and it has annual capacity of 350,000 twenty equal units (TEU). An additional $ 65 million was invested to enhance its capacity up to 525,000 TEU. The 3rd phase of the project was launched on March 7, 2005, with an investment of US$ 55 million to extend the capacity up to 700,000 TEU.

In addition, KPT has awarded a contract for a second container terminal on BOT basis with estimated cost of US$ 75 million. To ease transportation problem between the port and the factory, the KPT has pledged to contribute over Rs.2.8 billion for reconstruction of roads. As the new generation of container ships come on board, KPT is taking initiatives to be able to cater to the even higher capacity fifth and sixth generation ships. This involves the development of 10 deep draught berths with the total cost of US $ 1,087 million.

Port Qasim:

Port Qasim is fast becoming a major contributor to national economy of Pakistan with an impressive growth in port operations. During 2005-06 cargo handled at the port increased by 10.8 percent from 21.3 million tonne to 23.6 million with the increase of marine traffic by 8 percent. The cargo handling during July- March 2006-07 increased from 16.8 million tonne to 19.7 million tonne over the corresponding period last year. This is an increase of 17 percent which is higher than 14 percent increase recorded for the same period last year. During the last 3 years a marked improvement has also been witnessed in revenue growth. The revenue generation over the last five years was increased from Rs. 2 billion to Rs.3.4 billion. The PQA is currently pursuing a large number of projects for capacity enhancement and industrialization, attracting foreign direct investment (FDI) and simultaneously undertaking major infrastructure development to enhance its efficiency. The port has already attracted US $ 1.5 billion of FDI.

Gwadar Port:

The Gawadar port was inaugurated on 20th March 2007. Gwadar, a district of Balochistan enjoys a strategic position on the coastline of Pakistan. Balochistan in general and Gwadar in particular has been neglected in the past but its 600 km long coastline has been brought to the lime-light by the present government which is determined to develop this Port into one of the most modern Ports in the world. This port would be an integral component of the trade corridor for Central Asian states, China and the Gulf as 60 percent trade of oil and gas is done through this route. A deep sea port like Gwadar is already attracting global attention, and once it is fully developed with all supporting facilities required to handle trans-shipment and trade, Gwadar will become one of the important gateways to prosperity for the people of Pakistan in general and Balochistan in particular. Gwadar could spur economic progress through out the region by reducing the transport time between China, Middle East, Central Asian States, Europe and Africa. Some experts even estimate that Pakistan could earn up to US $ 60 billion per annum out of transit trade when Gawadar Port and the National Trade Corridor are fully developed and operational. The operation and management of the port was recently handed over to the Singapore Port Authority (SPA) under a 40 year agreement between the Gawadar Port Authority (GPA) and the Concession Holding Company (CHC) a subsidiary of the GPA that is operating 22 ports in 11 countries. The company will invest $ 550 million in next five years. The port will not only promote trade and transport with Gulf States, but will also provide transshipment of containerized cargo, unlock the development potential of hinterland and will become a regional hub for major trade and commercial activities.

Future Outlook:

National Trade Corridor: In order to create a growth-facilitating infrastructure a major initiative namely the “National Trade Corridor” has been launched, to revamp the whole transport sector including ports, roads, railway, aviation etc. A framework to develop and improve the North South Corridor has been incorporated in it. The framework takes a holistic and integrated approach to reduce the cost of doing business in Pakistan by improving the trade and transport logistics chain and bringing it up to international standards. The initiative is in line with Medium Term Development Framework (MTDF). The government’s strategy to establish a multi-modal transport system is based on emphasis on asset management with consolidation, upgradation, rehabilitation and maintenance of the existing system; enhanced private sector participation in transport and use of modern technology to increase sector efficiency. The strategy aimed at enhancing regional connectivity to improve links to the Central Asian States, Iran, Afghanistan and India. With the development of the North-South and East West trade links, energy and industrial corridors with China, Central Asian Republics, Afghanistan and Iran would also be developed. Basic theme of the National Trade Corridor Improvement Program is “Decreasing the cost of doing business through improvements in the trade logistics”. Basic thrust would be to get results through short term / long term measures. In the short term, quick results would be achieved with small investments through policy interventions, systematic & procedural improvements, reducing costs & time and eliminating red-tapism. Long term measures include higher investments on infrastructure, deep-rooted institutional reforms to ensure sustainability and conducive environment for pragmatic investment by the private sector. An efficient and well-integrated transport system facilitates the development of a competitive economy and creates vast opportunities to reduce poverty. It also ensures safety in mobility and augment regional connectivity. All these efforts are expected to help increase Pakistan’s exports from US$ 17 billion in 2006 to around US$ 250 billion by 2030. This program would not only target the trade facilitation and infrastructure development, but also will serve for developing an energy and Industry corridor in future. Pakistan can establish exclusive industrial zones for Chinese and other Central Asian entrepreneurs near the industrial cities of Karachi, Lahore, Faisalabad and Peshawar. The NTC will also boost the emerging trade and business status of the Gawadar Port.