KARACHI, May 19: The Karachi Port Trust (KPT) has allocated record amount of Rs5.868 billion for its annual development programme (ADP) for the financial year 2005-06. The allocation is 22 per cent higher than last year’s ADP and is going to be spent on purchase of capital goods and development of major port projects. The higher allocation of funds will help the port to keep its development pace in line with growing global challenges of automation and faster movement of cargo.

The most prestigious project that KPT plans to undertake during 2005-06 is the construction of deep draft container terminal for which Rs560 million has been initially allocated. The terminal will be built at Keamari Groyne. The amount will be spent on consultancy, detailed designing and supervision services.

Once the deep draft container terminal is completed the Karachi Port will be one of the pioneers in the region which could cater to those ships which are presently on drawing boards. It will transform the port from feeder port to hub port where vessels with draft up to 18 meters could be given berth.

Presently both the ports of the city — Karachi Port and Port Qasim — could only give berth to vessels with a maximum draft of 11.5 metres and this has labelled them as feeder ports where only small vessels could call. Due to restriction on the size of vessels the economies of scale could not be met and charges for freight cargo also remains in higher end which makes country’s import and export costlier.

Under the ADP 2005-06, the KPT has allocated Rs100 million for the development of cargo village on KPT estate in western backwater area. Once the project is completed it will help accommodate trans-shipment cargo as well as cargo destined for the upcountry. It will provide facility under one roof — from warehousing, customs, banking to clearance of cargo.

To meet the growing demand of POL and edible oils of the country the Karachi Port is going to undertake refurbishment of OP-II where liquid bulk cargo would be handled with a higher capacity and pace. The KPT has allocated Rs400 million for this project during 2005-06 fiscal year.

Furthermore, the port plans to undertake rehabilitation of berths No 5 to 10 at East Wharf and reconstruction of berths 11 to 17. Both the projects would get Rs50 million each from the ADP 2005-06.

The KPT has also allocated huge funds for the procurement of capital goods needed to upgrade and modernize port operations. The foremost project among capital goods includes the procurement of trailer suction hopper dredger. A huge fund of Rs1.5 billion has been allocated for this purpose which also includes consultancy services.

With the aging of its own dredgers the KPT has to spend huge amount of funds on dredging of approach channel and berths by awarding contract to foreign firms. But after the procurement of new dredger the port would not only save huge amount but would add to its assets.

Similarly, another dredger needed for de-silting of areas close to berths known as backhoe dredger with two split type hopper barges will also be procured and for this a fund of Rs450 million has been allocated in the ADP.

For faster movement of ships the port has allocated Rs210 million for the procurement of two shipping tugs. In order to bring the waiting time of the vessels to zero the port needs faster and stronger tugs for quick movement of ships in and out of port area.

The Karachi Port is also undertaking various projects under the Tameer-e-Karachi plan and has allocated huge funds for rehabilitation and construction of various roads, underpasses, and flyover of the city.

Though the work on such projects is already in full swing but the KPT has further allocated funds in the ADP 2005-06 to keep the pace going and ensure that these vital city projects do not stop half way and create problem for the commuters in general and country’s imports and exports movement from and out of the port in particular.

In the ADP 2005-06, the KPT has allocated Rs530 million for the rehabilitation of MT Khan and Jinnah Road. The work on both the roads is already in progress.