Mr Hayat was unable to respond when asked that the existing capacity of the port is not being fully utilized; therefore as to why new container terminal at a mammoth cost is being developed at Keamari. - File photo

KARACHI: Even after registering a growth of around 9.6 per cent, the Karachi Port’s position in terms of cargo handling during 2010-11 scaled down by three positions amongst world ports which have moved faster and worked more efficiently.This was stated by newly-appointed chairman of Karachi Port Trust (KPT), Mohammad Aslam Hayat, in his first media briefing here on Monday.

He disclosed that the KPT last year made an operational income of Rs10.8 billion, out of a total income of Rs11.8 billion and incurred expenditure of Rs7.4 billion.

The chairman admitted that the Karachi Port is more expensive than regional ports by 10 to 20 per cent because average cost of handling vessel comes in the range of $10,000 to $40,000 against $22,000 of the regional ports.

He disclosed that last year the KPT reduced tariff by 10 per cent which took total cut to 40 per cent so far and the port plans to further reduce tariffs this year on getting board approval.

Mr Hayat said that a meeting was held with the KPT employees and it has been decided to form a committee which will look into the cases of contract and daily wages employees for regularising them.

However, he was not ready to divulge on reported political and back-door large-scale appointments made by the out-going chairman of the KPT, Nasreen Haque, during her tenure.

Similraly, he avoided to answer questions regarding stoppage of dredging work by a Chinese company at under-construction Pakistan Deep-Sea Container Terminal at Keamari.

The KPT chairman was assisted by general manager operations, Rear Admiral Azhar Hayat, general manager finance Shama Ehsan Khan and general manager Planning and Development Hanif Abdullah.

He further said that arrival of Nato/Isaf containers has slowed down and the government is considering removing stacked containers belonging to the allied forces in Afghanistan to places outside the port area.

He disclosed that around 3000 containers and 2,900 vehicles belonging to Nato/Isaf are still lying in the port area and the port would be charging demurrage for the over-stayed period.

The port will continue to give priority to commercial cargo which is the life-line of the country’s economy, he added.

Mr Hayat was unable to respond when asked that the existing capacity of the port is not being fully utilized; therefore as to why new container terminal at a mammoth cost is being developed at Keamari.

He was also perturbed when asked that how the terminal would operate without giving access through planned harbour crossing bridge which is yet to be awarded for construction.

However, GM planning and development Hanif Abdullah said that initially KPT was looking for Asian Development Bank funding for the bridge, “but now we would prefer to go for Built Operate and Transfer (BoT) deal because it will not require loan or funding at high interest rates.”

Responding to another question, he further said that dredging work at deep sea container terminal had been completed up to 52 per cent and it would have a total cost of Rs20 billion.

Similarly, he said marine protection work is also complete up to 50 per cent and will have a total cost of Rs12 billion and quay wall with 1500 meter length will cost Rs18 billion and would be completed in 2013.

Mohammad Aslam Hayat said that there was no problem for Afghan Transit Trade (ATT) cargo at the port except that it was facing issues related to transportation and communications.

He said lack of communications and road network, railway facility and NLC’s trucking, the ATT was suffering.