IN response to fast-changing global transportation trends and developments and growing challenges from regional ports, the Karachi Port Trust has been proactive in capacity building and upgrading its facilities and equipment.

Its major project is the gigantic Pakistan Deep Water Container Port (PDWCP) at Keamari Groyne, at an estimated cost of Rs72 billion, which is expected to come into operation by the middle of next year.

Talking to Dawn in his office at the Karachi Port Trust’s (KPT) head office located in an 18th century building on Eduljee Dinshow Road, the trust’s chairman, Rear Admiral (retd) Azhar Hayat, says a concession agreement for the development, operation and maintenance of PDWCP has already been signed with M/s Hutchison Port Holding (HPH) of Hong Kong.

The company will be responsible for bringing in larger ships due to its connections with international shipping lines, and will also ensure usage of the facility. HPH will be investing about $457 million for development of the terminal’s infrastructure, adds Mr Hayat.

The chairman says their entire focus is on the PDWCP, which is already running behind schedule. It needs to be completed early so that the huge investment could start paying back to the port and ease off pressure on its funds.

Giving some details about the mega project, the KPT chief says up to 85 per cent of dredging and reclamation has been completed, and he expects it to be fully done by the end of this year. Under the contract awarded to China International Water and Electric Company (CWE), the company is responsible for dredging work on a 33-million cubic metre area, including eight million cubic metres of reclamation, at a total cost of Rs19.228 billion.

In addition to this, KPT sometimes ago upgraded most of its existing berths as well, by deepening them up to 13 metres from 11.5 meters, thus enabling them to berth vessels with 100,000DWT (dead weight tonnage), having 305 metre length overall (LOA). The oil piers also have a 13-metre draft, and can accommodate tankers with 95,000DWT.

Besides being the premier sea port of the country, having a total of 30 berths at East and West wharfs and three oil piers, the Karachi port is among very few natural ports in the world that remain calm even during the rough monsoon season.

KPT is operating on a ‘landlord’ concept and has two out of three dedicated container terminals operating in the country. The Pakistan International Container Terminal at East Wharf is run by a local company, Marine Group of Companies.

The other — the Karachi International Container Terminal at West Wharf — is being operated by the same foreign company, M/S Hutchison Port Holdings. Both these firms are operating on 30-year leases.

Mr Hayat, who is a graduate of the British Royal Naval College, Darmouth, says the Karachi port has always been conscious about the needs of trade and industry.

Undoubtedly, he says, the port is currently working below capacity due to a slowdown in trading activity, which has resulted in a lesser number of ships calling at the port. But the port’s management, under the guidance of the Ministry of Ports and Shipping, is undertaking expansion and upgradation to meet unforeseen higher volumes of cargo and transit trade activity expected in the future.

And in order to avoid any financial crunch, Azhar Hayat says all care is being taken to maintain a balance between revenue and expenditure. Projects are being undertaken on a priority basis, keeping in view the availability of resources so that investment and regeneration of funds maintain a healthy balance at every stage.

The KPT chairman says the Marine Protection Works at PDWCP has been completed. The MPW includes three breakwaters, and a sand dyke has been constructed by M/s China Harbour Engineering Company (CHEC) at a cost of Rs12.8 billion.

The deep water container terminal, he says, will have 10 berths, but port operations are expected to commence from next year initially with four berths. The quay wall of berths is being built by CHEC at a cost of about Rs18 billion.

The evaluation of tenders for providing aid for navigation works at PDWCP is in advance stages, and this will include buoys, lights, VTS, radar, communications and other aspects considered necessary for a modern terminal.

The depth of existing berths at East and West wharfs are being deepened to up to 13 metres, which will enable the port to accommodate larger vessels and meet economies of scale. Presently, he says, reconstruction of berths 15 to 17A, including that of Ship Repair Berths at East Wharf, is under way.

The reconstruction of these berths is being done with help from the World Bank. The contract was awarded to M/s Ssangyong and Dangyong of South Korea at a cost of Rs9.5 billion. Work commenced in July 2012, and is expected to be completed by the end of this year. Similarly, five other berths — from 10 to 14 — have been deepened to 13-metre draft and are already functioning.

The KPT chairman adds that these berths could be deepened to 16-metre drafts to accommodate even larger vessels, known as ‘mother ships,’ if needed in the future. However, a turn circular will be needed for such huge vessels having length overall of over 350 metres, says Mr Hayat.

In order to meet this condition, berths at East Wharf will be shifted backwards to develop a turn circle, but this will depend upon the volume of trade and demand from trade and industry, as they are the real stakeholders and port users.

Responding to a question, he acknowledged that there has been a lot of criticism over the PDWCP and questions are being raised about its need when the existing port’s capacity is under-utilised.

“I personally feel there should be no looking back, particularly when huge funds have already been spent.” On the contrary, all efforts are being made for early completion, and daily monitoring is being carried out to see its progress, he adds.

Meanwhile, the KPT is also going to sign a Memorandum of Understanding with Pakistan Railways for hauling bulk cargo like coal, clinker and cement. Mr Hayat disclosed that a dedicated coal berth will be constructed in the back area of PDWCP to meet rising imports of coal, as more and more power plants are being converted to coal.