KPT to take over PICT as 21-year concession expires
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ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Monday empowered the Karachi Port Trust (KPT) to take over the operations of the Container Terminal (Berths 6 to 9 at East Wharf) when its 21-year agreement expires on June 17 with the existing concessionaire — Pakistan International Container Terminal (PICT).
The meeting of the committee presided over by Finance Minister Ishaq Dar was given a presentation on the subject. The meeting was informed that KPT had entered into a 21-year contract with the PICT over the operations of the Container Terminal in 2002 on a Build, Operate and Transfer (BOT) basis but the concessionaire was unwilling to vacate the facility by overstretching its position and contract terms.
However, the Ministry of Maritime Affairs (MOMA) being the parent ministry of the KPT, based on resolutions and decisions of the board of directors of KPT, had directed the port trust to take over the facility soon after the expiry of the contract.
“The committee endorsed the decision of the ministry that after the expiry of the agreement with PICT on June 17, 2023, KPT will take over the charge of operating the activities of the Container Terminal”, said an official statement.
Informed sources said many port operators including Abu Dhabi Ports had also shown interest to take over the terminal, improve its facilities and operate through competitive bidding. However, the existing operator wanted to continue by exercising the right to match the highest bid. The sources said the existing concessionaire had taken the matter to the Sindh High Court to retain its occupation and operations even after June 17 but its claim was rejected by the court in March. The litigant had moved an intra-court appeal.
The CCoIGCT directed the KPT to take over the facility and pursue the matter with the honourable for the early conclusion and select any other operators through competitive bidding.
The court record suggests that PICT’s majority stakes were secured by the Philippines-based International Container Terminal Services Inc (ICTSI). The KPT had decided last year to terminate the existing contract on expiry and hold competitive bidding for future operations.
PICT wanted the KPT’s decision to be annulled so that it could continue operating the terminal’s births 6 to 9 and claimed entitled to an extension of the contract because it was not given termination notice a year in advance.
PICT CEO Khurram Aziz Khan didn’t respond to a request for comment.
Published in Dawn, June 13th, 2023
