Vol 3 Cold Storages and Controlled

PAKISTAN HORTICULTURE DEVELOPMENT & EXPORT BOARD
PRE-FEASIBILITY STUDY ESTABLISHMENT OF COLD CHAIN SYSTEM UNDER NATIONAL TRADE CORRIDOR IMPROVEMENT PROJECT
VOLUME-III COLD STORAGES AND CONTROLLED ATMOSPHERE STORAGES
June 2007
405-406, Shaes Centre, Block 13 C, Gulshan-e-Iqbal, Karachi
Cold Chain Project Final Report, Volume-III Cold Storages
Arch Vision
ESTABLISHMENT OF COLD CHAIN SYSTEM UNDER NATIONAL TRADE CORRIDOR IMPROVEMENT PROJECT PREFEASIBILITY REPORT VOLUME-III COLD STORAGE AND CONTROLLED ATMOSPHERE STORAGE Table of Content 1CURRENT STATUS & FUTURE NEEDS 1.1 1.2 Cold storage (Production Area and Markets) Cold storage (Airports/Sea ports) 6 7 8
2-
TYPES OF COLD STORAGE
12 12
2.1 2.2 2.3 2.4

2.5
MEDIUM TEMPERATURE COLD STORES

12
FROZEN FOOD STORES

12
CONSTRUCTION PRACTICES
13
THERMAL INSULATION
Prefab Insulated Panel Structure 13
3-
SITE SELECTION
14
4-
DESIGN BASIS & TECHNICAL SPECIFICATIONS
15
_________________________________________________________________ 2 Pakistan Horticulture Development & Export Board
Arch Vision
4.1 4.2
Factors to be Considered for Site Selection Size Determination
15 15 16 16 19 21 21 21
4.3 4.4 4.5
MECHANICAL OPERATIONS STRUCTURE AND THERMAL INSULATION REFRIGERATION LOAD
4.6 EFFECT OF HARVEST TEMPERATURE ON REFRIGERATED STORAGE

4.7 4.8 Regulations Civil Work Planning & Design
5-
ENGINEERING DESIGN 5.1 Size and Layout Options
23 23 24
5.2 5.3
5.4
PRODUCE FLOW PATTERNS

25
AIRFLOW PATTERNS
Refrigeration System 27
6-
COLD STORE OPERATION
29 29
6.1 6.2
CONDENSATION AND HUMIDITY CONTROL

29
TEMPERATURE
Arch Vision
6.3 6.4 6.5 6.6 6.7 6.8
Temperature Control Sanitation Maintenance Storage Facility Loading Packing Container Design and Positioning Storage Compatibility
30 30 31 31 32 33
7-
TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD STORAGES
34
8-
PROPOSED MANAGEMENT STRUCTURE
39
9-
COSTING OF PROJECT
40
10-
PROPOSED MEANS OF FINANCING
59
11-
FINANCIAL ANALYSIS 11.1 11.2 Key Assumption for Operation Financial Results
60 60 63
Arch Vision
13-
RECOMMENDATIONS
64
12-
IMPLEMENTATION PLAN
72
Arch Vision
VOLUME-III COLD STORAGE AND CONTROLLED ATMOSPHERE STORAGE
1-
CURRENT STATUS & FUTURE NEEDS
Fresh fruits and vegetables contain high water contents and are generally more perishable than other crops. Technically, these are biologically living entities, and continue normal life processes e.g. respiration and their other physiological and biochemical processes, even after harvest. However, once detached from parent plants, the loss in water and nutrients is not replenished, and the internal reserves of fruits (water, carbohydrates) are used to sustain biological activities. These processes are largely influenced by the environmental conditions (temperature, relative humidity, gaseous atmosphere) in which they are kept after harvest, and the postharvest biological of fruits and vegetables is directly proportional to the rate of these processes. Hence, in order to maintain quality, improve shelf life and extend marketing period of fruits and vegetables, the control of environmental conditions during storage and transportation are prerequisites. Preservation of perishable food is a matter of vital importance and the loss due to the lack of proper storage facilities is often very high. It is estimated that the country is losing almost 1/3rd of its produce annually at various postharvest stages. Refrigeration has been the principal known method of successful storage of fresh fruits and vegetables to retain their freshness and flavour. However, over time, progress has also been made in the field of controlled atmosphere storage and worldwide trend is changing to develop controlled atmosphere storage particularly in the temperate regions. Preservation of food by proper storage assumes great importance in a country. As far as the status of cold storage in Pakistan is concerned, the current total estimated cold storage capacity of fruit and vegetable in the country is around 0.85 million tons (Table III-1), which is about 6% of production, with 90% cold stores in Punjab, which are mostly confined to the big cities (List provided in Appendix I). Table III-1: Cold Storage Status in Pakistan Qty (000 Tons) Punjab Sindh 4764.0 884.3 Fruit production (2005/06) Vegetable prod (200/06) 3878.7 1212.4 8642.7 2096.7 Total (F&V) production Installed cold storage 849.3 16.0 capacity (9.8%) (0.8%) Proposed@5% of production 1296.4 314.5 NWFP 519.1 920.9 1440.0 2.9 (0.2%) 216.0 Balochistan 980.2 1384.7 2364.9 2.5 (0.1%) 54.7 Total 7147.6 7396.7 14544.3 870.7 (6.0%) 2181.6
Source: Provincial Agriculture Departments, DALMAG & PHDEB. Note: Figures in parentheses indicate cold storage capacity as percent of fruit & vegetable production
Arch Vision
The country needs to increase and maintain its cold storage capacity from current 6.37% to around 15% of production, with most of the new storage facilities to be established close to the production area (nearest market centers) if it is to meet the cold chain needs and to substantially reduce the post-harvest losses. According to PHDEB sources, Government has approved following new collection points cum cold storage facilities at Haripur and Butkhela 1200 tons each in NWFP, and Loralai & Khuzdar 1000 tons each in Balochistan. 1.1 Cold Storage (Production Area and Markets)
Several kinds of fruits and vegetables are cultivated seasonally depending upon location of land and other climatic conditions. These have to be preserved both at producing centres as well as consuming centres, and by employing correct storage practices it is possible to store them for extended period. In order to assess the immediate needs of fruits and vegetables storage, a comprehensive survey was done in major markets and production areas, and following cold storages have been proposed (Table III-2) at different locations to meet the requirement. The proposed cold storages are listed in Table III-2 and illustrated in Fig III-1 These cold stores are in addition to existing cold store facilities with the pack houses to store the fruits. Table III-2: Proposed Cold Stores*
Province City/Area Sargodha (Production Area) Punjab Requirement 1 CS 1 CS 1 CS 1 CS 1 CS 1 CS 1 CS 1 CS 1 CS 1 CAS 1 CS 1 CS Capacity (Tons) 3000 (6 X 500) 1500 (3 X 500) 5000 (10 X 500) 5000 (10 X 500) 5000 (10 X 500) 2000 (4 X 500) 2000 (4 X 500) 1000 (4 x 250) 1000 (4 X 250) 5000 (10 X 500) 5000 (10 X 500) 5000 (10 X 500) Commodity* Kinnow Fruits and vegetables Kinnow Kinnow, Apple Potato Peach, Apple Potato Peach & Apple Apple
Sargodha (F&V MKT)

Kot Momin Islamabad (Sector I-9) Peshawar Mardan Waziristan (F & V Market) Chitral Chaman Quetta Turbat
NWFP
Fruits and
Fruits and vegetables vegetables Apple and other fruits and vegetables Dates & other Fruits Dates
Balochistan
Sindh
Khairpur
Sukkur 1 CS 3000 (6 X 500) Dates & other Fruits CS: Cold Storage, CAS: Controlled Atmosphere Storage * Proposed cold /controlled atmosphere stores are for immediate needs ad the assessment is based on survey results and feedback from stakeholders
Arch Vision
1.2
Cold Storage (Airports/Seaports)
Currently, there is no cold storage facility at any of the port. In order to maintain the cold chain, cold storage facilities are required at all international airports and seaports. The cold storage requirement at various airports and seaports were assessed and finalized in consultation with the industry. The proposed cold storages are listed in Table III-3 and illustrated in Fig III-2 Table III-3--Proposed Cold Stores Requirement at Airports and Seaports Air Ports/Sea Ports Karachi Capacity Cold Products Store + Freezer Unit (Tons) 500 (5 x 100) Fruits and vegetables, meat, frozen food & pharma products. 300 (3 x 100) 200 (2 x 100) 200 (2 x 100) 200 (2 x 100) 200 (2 x 100) 200 (2 x 100) 5000 (10 x 500) ---5000 (10 x 500) 5000 (10 x 500) ------Remarks
----
Lahore Faisalabad Multan Quetta Peshawar Islamabad Sea Ports Port Qasim, Karachi Karachi Port Gwadar*
Extendable to 500 Extendable to 300 Extendable to 300 Extendable to 300 Extendable to 300 Extendable to 300
Note: One out of proposed compartments may be made as freezer unit for frozen foods, meat, pharmaceutical etc at each airport and seaport, are suggested to enhance utility of facility and to make it more sustainable. * Proposed cold /controlled atmosphere stores are for immediate needs and the assessment is based on survey results and feedback from stakeholders
Arch Vision
F&V CS (2)
Chitral
Apple, Peach CAS (1) `
Apple, Peach, Potato CAS (1)
Apple CAS (1)
Waziristan Wana Sargodha Kinnow, Apple, Potato CAS (1)
Apple, F & V CAS (1)
Kot Momin Zhob KilaSaifullah Lora Lai Muzaffargar h Kinnow, F & V CS (2) Kinnow CS (1)
F&V CS (1)
Chaman
RY. Khan
Turbat Dates and other fruits CS (1)
Khairpur Dates CS (1)
Dates and other fruits CS (1)
CS: Cold Store; CAS: Controlled atmosphere Store
Fig III-1: Proposed locations of CS & CAS in Pakistan _________________________________________________________________ 9 Pakistan Horticulture Development & Export Board
Arch Vision
CS (Airport)
CS (Airport)
CS (Airport)
EH + CS (Airport)
CS (Airport)
CS (Airport)
CS (Sea Port)
Gawadar
EH + CS (Airport) CS (Sea Port s KPT & Port Qasim)
CS: Cold Stores; EH: Export House
Fig III-2: Proposed Cold Stores and Export Houses at Airports and Sea Ports in Pakistan _________________________________________________________________ 10 10 Pakistan Horticulture Development & Export Board
Arch Vision
Table III-4: Recommendations of CA or MA Conditions During Storage and/or Transport of Selected Fruits and Vegetables Temperature Range* (C)
Commodity Fruits Apple Apricot Grapes Grapefruit Lemon Lime Mango Orange Peach Pear, Asian Pear, European Plum Vegetables Onion Mature Bulb (Dry) Tomatoes (Green) Tomatoes (Ripe) Potato Mandarin/Tangerine
CA
%O2 %CO2 1-2 2-3 2-5 3-10 5-10 5-10 3-7 5-10 1-2 2-4 1-3 1-2 1-2 3-5 3-5 0-3 2-3 1-3 5-10 0-10 0-10 5-8 0-5 3-5 0-3 0-3 0-5 0-10 2-3 3-5 -
0-5 0-5 0-5 10-15 10-15 10-15 10-15 5-10 0-5 0-5 0-5 0-5 0-5 12-20 10-15 7 4-7
Notes: * Usual or recommended range; a relative humidity of 90-95% is recommended.
Specific CA combination depends on cultivar, temperature, and duration of storage. These

recommendations are for transport or storage beyond 2 weeks. Exposure to lower O 2 and or high CO2 concentrations for shorter durations may be used for control of some physiological disorders, pathogens, and insects. From Pakistan perspectives, CA storage is mainly recommended for storage /transportation of apples, while research work is needed in case of mango and other crops.
_________________________________________________________________ 11 11 Pakistan Horticulture Development & Export Board
Arch Vision
Kader, A. 2002. Postharvest Technology of Horticultural Crops (3 rd edition). Univ. of California
2- TYPES OF COLD STORAGE Temperature-wise there are two types of cold stores used for different applications:
2.1
Medium Temperature Cold Stores
These are generally designed for storing a variety of products at 0 to 8 deg C. Commodities include various types of fresh fruits and vegetables, dry fruits, spices, pulses, milk products etc. Most cold stores in Punjab, Sindh & NWFP are designed for single commodity storage such as potatoes. Units in Punjab and parts of Sindh are of multipurpose type designed for storage of various commodities. The occupancy levels in the multi commodity stores are much better than those used for single commodity storage. However, the chambers in multi commodity stores have to be designed for maintaining different temperatures and sometimes relative humidities to suit different products. Construction practices vary largely, in different parts of the country depending on the type of usage. The bulk commodity stores have chambers of large sizes whereas the multi-purpose units have many chambers of smaller sizes to suit the customer needs. These medium temperature cold stores are generally constructed with 2 to 6 levels. The capacity range is from 500 M.T. to 10,000 M.T. or more. However, in case of cold stores with pre-cooling facility the capacities are much smaller and the units are designed with single floor construction.
2.2
Frozen Food Stores
Frozen food stores are, normally, a part of a food processing and freezing complex. However, they are also set up as a part of multi-purpose cold store or as independent units to offer facilities for storage of products already frozen at the food freezing plants. There are a number of commodities, which have to be processed and frozen for preservation over long periods of time. These include green peas, corn, okra (lady finger), mixed vegetables, mango pulp and tomato puree. The other items are ice cream, butter, fish and meat products. Frozen food stores are designed for a temperature of - 20 2 C for most foods.
2.3
Construction Practices
The conventional construction includes brick walls with RCC frame and a roof with RCC slab. In Punjab and Sindh the roofs are truss type with G.I. / A.C. Sheet covering. Internal floors are constructed with RCC columns and beams or with steel framework with wooden batten flooring as a normal practice. In some of the recent units RCC battens and steel grating have also been used. For best utilization of space columns and beam drops inside the cold storage chambers are normally avoided. _________________________________________________________________ 12 12 Pakistan Horticulture Development & Export Board
Arch Vision
2.4
Thermal Insulation
In some old units cheaper material like rice husk was used as the thermal insulation. Although the insulation itself is very cheap it necessitated very large wall thicknesses and also caused many maintenance problems. For over three decades now the better designed cold stores have been insulated with materials like Expanded Polystyrene, Fiberglass or Polyurethane. Whereas the insulation on walls and ceilings is finished with cement sand plaster in conventional cold stores, the latest trend is to use sheet metal cladding. The cladding materials are aluminium sheet or pre-coated galvanized steel sheet. A vapour barrier is provided in all cases to arrest moisture migration to the cold store. Barrier material (such as steel, aluminum, reinforced plastic sheets, metal foils, mastic type hot or cold application paints) is provided on the warmer side of the insulation.
2.5
Prefab insulated panel structure
The development of pre-insulated panels has brought in a revolution in cold storage construction the world over. These panels have been in use for cold storage construction for over two decades in the developed countries. Modern prefab panels have been introduced around 10 years back. Prefab panels, also called sandwich panels, are mainly available in two types: EPS panels with expanded polystyrene insulation bonded to sheet metal skins by using a special adhesive. PUF panels using polyurethane as insulation material foamed between two metal skins. These panels are structurally strong and have a better insulation value as compared to EPS panels for a given thickness. (Refer Figure III 3 & III 4)
Fig III-3: Medium Size Walk-in Freezer with Sliding Door
_________________________________________________________________ 13 13 Pakistan Horticulture Development & Export Board Fig III-4: Large size cold storage made of PUF panels
Arch Vision
3-
SITE SELECTION
The type of cold storage depends on the desired function. The primary function of the facility determines the location. For example, for retail sales, location of the cold storage must be near a major road, and the area must have adequate parking space. If the facility is mainly to store produce prior to shipping, it should be close to the grading and packing room with convenient access to fields or orchards. Also, there must be space available for movement and storage of empty containers, equipment, and supplies.
Arch Vision
44.1
DESIGN BASIS & TECHNICAL SPECIFICATIONS
FACTORS TO BE CONSIDERED FOR SITE SELECTION
The following factors are required to be considered for selecting an appropriate site for cold store.
A cold storage facility must be in a well-drained area. It requires drains to remove water from condensation, and cleaning and sanitation operations. Providing good drainage is essential. Availability of water Availability of Electricity Three phase of electricity is necessary when more than 10 tons of refrigeration is needed. Wastewater disposal facility Appropriate sewage collection and disposal system must be considered.
If any of above facility is not available the arrangement for the same must be done prior to construction of cold store. 4.2 SIZE DETERMINATION
To define the size of the refrigerated storage, the following factors are required to be evaluated.

Volume of product to store. Produce containers (pallet bins, boxes, bulk). Volume required per container (ft3/container). Aisle space needed (mechanical or manual operation). Lateral and headspace. Available site space.
The amount of produce to store and the type of containers used for storage define volume requirements. In defining the size of the storage facility, peak storage and future needs must be considered. The following formula helps to define cold storage size: V = v (C + S) V = the total volume needs in cubic feet (ft3); v = the volume occupied by one produce container in cubic feet, per crate, per box, per bin, per bag etc. C = the maximum number of containers to be cooled at one time: _________________________________________________________________ 15 15 Pakistan Horticulture Development & Export Board
Arch Vision
S = the maximum number of containers to be stored at one time. The volume (V) obtained from the above formula does not include space for air circulation, aisles and walkways. An additional 40 percent of the volume is used in stacking, spacing, and air circulation. As a rule of thumb, 25 percent of the floor area is devoted to aisles and walkways.
4.3
Mechanical Operation
The aisles should be at least 1 times the width of the forklift. For air circulation, allow 68 inches of space between containers and walls, at least 18 inches between containers and the ceiling. Also, allow enough space to spread the produce for rapid cooling. The space available at the site for cold storage might be the major constraint in determining its size. In this case, special attention should be paid to operating needs of the facility during peak storage demand. The number of doors in a cold storage room should be minimal, without compromising the operations. Every time a door is opened, cold air leaves the storage and warm air comes in. The doors should provide a good seal and must have the same insulation as walls. They should be weather-stripped to reduce warm air infiltration, have adequate gaskets to provide a good seal, have good quality hinges and latches, and should open from both inside and outside. In medium and large sized facilities, plastic strip curtains are recommended to prevent heat gain during loading and unloading operations. The size of the doors corresponds to the type of operations mechanized or manual. If a forklift is used, the door width must be at least 1 times the forklift width.
4.4
Structure and Thermal Insulation
In all cold storage slab floor is required. In general, four inches of wire-mesh-reinforced concrete over two inches of waterproof plastic foam insulation board provides a good floor. For unusually heavy loads, the slab floor should be 56 inches thick. Where ramps are required, they should have slope no greater than 1 to 5. The thermal insulation for the storage proposed must be cost effective and adequate for the proposed storage. Selection of insulation material is based on the R-value, resistance of the material to heat movement, and its cost. Among insulation materials, loose fill cellulose is the cheapest, followed by blankets and various foam sheet materials. The most expensive are sprayed or foam-in-place materials. Loose fill cellulose has half the R-value per square foot per inch of thickness of sprayed-in-place materials (3.5/in for cellulose versus 6.5/in for sprayed-in-place); however, the cellulose price is 2030 times less per square foot per inch of thickness than sprayed materials.
Arch Vision
Nonetheless, sprayed-on and foam-in-place materials provide good seals and reduce labor and material costs because they are relatively easy to apply, do not require interior panel, and reduce the wall or ceiling thickness. Insulation is good as long as it is dry. To prevent condensation, install a vapor barrier on the warm side of insulation in the walls, ceiling and floor. A storage facility must have the means to circulate air above the unit. This will prevent hot air in the summer from overloading refrigeration equipment. If the cold storage facility is under the same roof as the packing area, the packing area does not need as much insulation. The minimum insulation requirements for a small cold storage room for fruits and vegetables, located in a warehouse or sheltered area are R-10 for the floor, R20 for walls and R-30 for the ceiling. The larger the R-value the lesser the heat absorbed and lower the refrigeration requirements. Insulation values for selected building materials is given in Table III-5.
Arch Vision
Table III-5: Insulation values for selected building materials R-value Material Batt and Blanket insulation Glass or mineral wool, fiberglass Fill-type insulation Cellulose Glass or mineral wool Vermiculite Shavings or sawdust Hay or straw, 20" Rigid insulation Exp. polystyrene, Extruded, plain Molded Beads Expanded rubber Expanded polyurethane, aged Glass fiber Wood or cane fiberboard Polyisocyanurate Foam-in-place insulation Polyurethane Building materials Concrete, solid Concrete block, 3 hole. 8" Brick, common Softwoods, fir and pine Hardwoods, maple and oak Plywood, 3/8" Plywood, " Particleboard, Medium density R-value Per-inch (Approximate) For thickness listed 3.00 3.80*
3.13 3.70 2.50 3.00 2.20 2.22 30+
5.00 5.00 4.55 6.25 4.00 2.50 7.04
6.00
0.08 1.11 0.20 1.25 0.91 1.25 1.25 1.06
0.47 0.62
Hardboard. tempered. " 1.00 0.25 Insulating sheathing, 23/32" 2.06 Gypsum or plasterboard. " 0.45 Wood siding, lapped, " x 8" 0.81 0.44 Asphalt shingles 0.94 Wood shingles _________________________________________________________________ 18 18 Pakistan Horticulture Development & Export Board
Arch Vision
4.5
Refrigeration Load
The most common unit used to quantify refrigeration load is the refrigeration ton. One ton of refrigeration is defined as the energy removed from one ton (2,000 pounds) of water so it freezes in 24 hours. It is equivalent to 288,000 Btu in one day or 12,000 Btu per hour. To maintain the optimum temperature inside a cold storage facility, the system must have a properly designed refrigeration load. Determining the refrigeration load requires quantifying field heat and heat of respiration of the produce, conductive heat gain, convective heat gain, equipment load, and service and defrosts factors of the facility. Field Heat. Field heat is the amount of cooling necessary to reduce the produce from harvest temperature to the safe storage temperature within a given time period; the hotter the produce coming into the cold storage facility, the more energy needed to reduce the temperature, and the more time required to operate the equipment. Heat of Respiration. The heat of respiration is the energy released by the produce as it respires during storage. The warmer the produce, the more heat of respiration generated. Conductive Heat Gain. The conductive heat gain is heat gained by conduction through the building floor, walls, and ceiling. It is directly related to the insulation installed in the facility. The better insulated the cold storage facility, the less conductive heat gain. Convective Heat Gain. The convective heat gain is heat that enters the facility during the mixing of outside air with the cool inside environment. This load is directly related to the number of doors in the facility. The more doors in the facility, the higher the possibility of air currents. The amount of heat gained increases with the amount of times and periods that doors are open. Equipment Load. Equipment operating in the room, such as fans and lights, generates additional heat load. Lighting does not need to be excessive, just enough to identify produce and labels clearly, and to allow safe movement. Service and Defrost Factors. The service factor accounts for brief periods of unusually hot weather, loading rates that temporarily exceed those anticipated, or other unusual conditions of short duration. The defrost factor considers the time lost during coil defrost. The engineering procedure followed to determine the refrigeration load estimates the cooling needs under critical weather and capacity conditions. For every facility, it is important to determine the cooling load properly. Manual calculations or computer programs are available to determine the Refrigeration load for a properly designed facility.
Arch Vision
The position of the evaporator coil fans should provide air flow to the end of the longest side of the facility. If using additional fans to pre-cool produce, they should be properly located, and the refrigeration equipment should accommodate that purpose. When forced air is used to pre-cool produce, the cooling time could be reduced by 80 percent. The most common refrigeration systems for cold storage facilities are the direct expansion system and the flooded system. Most small storage units work with the direct expansion system; the flooded system is used only in large facilities.
FIGURES III-5 AND III-6 SHOW SCHEMATIC DIAGRAMS OF THE DIRECT EXPANSION AND THE FLOODED SYSTEM RESPECTIVELY.
Heat Output Condenser
V Compressor
L Ph Pl V Evaporator
Liquid receiver Expansion valve
Energy
Heat input Fig III-5: Schematic representation of a direct expansion refrigeration system
V = vapour L = liquid Ph = high pressure Pl = low pressure
_________________________________________________________________ 20 20 Pakistan Horticulture Development & Export Board Fig III-6: Schematic representation of a dry flooded refrigeration system
Arch Vision
4.6
Effect of Harvest Temperature on Refrigerated
Storage
A SAMPLE REFRIGERATION LOAD CALCULATION FOR TWO DIFFERENT PRODUCE (300 TONS OF TOMATOES AND 380 TONS OF GRAPES) ARE REPRODUCED HEREUNDER IN TABLE III-6.
Table III-6: Cooling Load for Alternative Harvesting Temperatures Tomatoes Harvest Temperature (C) Storage Temperature (C) Storage Capacity (ton) Harvest Rate Per Day (ton) Refrigeration Load (ton) 27 13 300 30 16.5 21 13 300 30 13.5 26 0 380 38 18.0 Grapes 14 0 380 38 11.5
The tomatoes are stored at 13 C and the grapes are stored at 0 C. A 13 C difference in the harvest temperature of the tomatoes indicates an extra load requirement of 3.0 tons of refrigeration for those harvested at 270C. A 12 C difference in the harvest temperature for the grapes demands 6.5 more tons of refrigeration to cool down and maintain the grapes. Therefore, it is recommended to harvest the produce in morning hours while the temperature is lower. 4.7 REGULATIONS
The cold store designer must be acquainted with the applicable laws, regulations, constructions codes and zoning restrictions, which effect the location of the facility. Construction codes and workers health regulations should be examined when a storage facility is designed.
4.8
Civil Work Planning & Design
A general layout plan of cold store and allied facilities will be developed. This will include cold store along with provision for future expansion, generator room, parking shed, office block, loading docs, weigh bridge, handling and packing room, workers canteen, dining room, change area and lavatory block. Civil work will also include water supply and sewerage system, storm water drain, internal road, boundary wall, and guardroom. Soil investigation will be carried out before structural design to determine the bearing capacity of soil, underground water table and chemical pollution. _________________________________________________________________ 21 21 Pakistan Horticulture Development & Export Board
Arch Vision
The next element is the height of cold store floor from ground level. This must always be carefully evaluated so that the height is enough to properly dock reefer trucks as well as the distribution vans. The minimum height of the cold store floor from natural ground level (N.G.L) should at least be equal to the height of the refrigerated container floor of primary distribution truck from N.G.L plus six inches. The level of ramps in front of the loading/unloading doors should be carefully worked out according to the vehicles that are planned to be used. Above a certain width of cold store in panel construction, its roof panels need to be supported either from below (pillars) or from top (hung by tie rods from the shed trusses). Generally, it is undesirable to have pillars inside the cold store. The roof panels are therefore normally hung from the shed trusses slab. The shed on top of the cold store is therefore designed with a view to have enough strength to take the load of roof panels. Secondly, in most cases, the evaporators are also hung from the shed trusses. Hence, provision for their load should also be kept in the design. The weight of roof panels and the evaporators can always be acquired from the supplier for onward communication to the shed designer. In view of this it is recommended to have the shed design sent to the cold store supplier for comments with regard to provisions required for roof panels and evaporators.
Another point to keep in mind is, that in case of panel joints on the cold store roof water will always seep through if allowed to stand on the roof. This is extremely undesirable and may even damage the panels in some cases. This normally happens in rainy seasons. To avoid this, it is possible to attach vertical sheet around the periphery of the shed hanging down enough so as to ensure that the rainwater does not reach on top of the roof keeping in mind the wind factor. Electrical distribution boards and plugging points for the refrigerated vehicle charging area will also be designed.
Arch Vision
55.1
ENGINEERING DESIGN
SIZE AND LAYOUT OPTIONS Cooling of produce can be accomplished in three-ways as shown in Fig III-7.
Option 1
Forced Air Cooling Storage Air
Holding Storage
Holding Storage
Option 3
Room Cooling Area Holding Storage Area
unnels
Forced Air Cooling Area Holding Area
Option 2
Fig III-7 Plan view of three storage layout options
Option 1: Provide two storages; one for forced-air cooling hot produce, with the other storage to hold cold produce after cooling; Option 2: Provide one storage where hot produce is forced-air cooled in one area, while cold produce is held in another area of the same storage; Option 3: Provide one storage where hot produce is room cooled in one area, while cold produce is held in another area of the same storage. Option 1 is preferred, but it usually has the highest capital cost since it requires a lot of floor area for air tunnels between pallets, and has extra wall area and doors. Hot produce is forced-air cooled either before or after packing in the forced-air cooling storage with plenty of refrigeration. After it is cooled, it is transferred to a holding storage, which has less refrigeration capacity since cold produce is easy to keep cold. Option 2 uses a forced-air cooling device (for hot produce) that is built in one end of the storage under the evaporator coils. Cold produce is then stored on the opposite side of the storage. This layout should be utilized if retrofitting an existing storage is the only alternative. This option may not be much less expensive than option 1 anyway, and the disadvantage is that adding a forced-air cooling system may require more refrigeration capacity. If the refrigeration is not adequate, the storage temperature may rise during the rapid cooling period. This may cause unwanted condensation, or sweating, on produce that is already cold, since warmer air could be contacting it. Furthermore, produce could fluctuate in temperature. _________________________________________________________________ 23 23 Pakistan Horticulture Development & Export Board
Arch Vision
Option 3 is least preferred, but is also the least expensive one to build since it has the least floor area. Because no forced-air cooling is used, produce containers must be vented very well, and high airflows are needed from the evaporator fans. Unfortunately, cooling rates may be unacceptably slow using this method.
5.2
Produce Flow Patterns
The flow of produce into and out of a refrigerated storage and related areas should be kept in one direction if possible. Produce should be arranged to allow a first-in, first-out policy. To acquire optimum cooling typical plan view of produce flow pattern is given in Fig III-8.
Evaporator Coils & Air Flow Direction 0.1m (4) Minimum Space between Pallets or Rocks
0.2m (8) Minimum Space on Walls Parallel to Airflow
0.3m (12) Minimum Space on Wall Perpendicular to Airflow
Fig III-8. Plan view of produce flow pattern Exterior hinged or sliding doors are expensive, but two or more may be necessary on walls parallel to the room airflow direction. They should line up with aisles inside the storage. Doors must be wide and high enough to accommodate forklift dimensions, loaded pallets and racks, or other off-season uses. There must be at least 2.1 m (7') of clear door height to accommodate most farm size forklifts, however 2.4 m (8') is preferred. Aisles in the storage must be wide enough to permit right angle turns. For most farm size forklifts, these aisles must be at least 3.4 m (11') wide. Because unused aisle space is so costly, most growers use this area for temporary storage during heavy picking periods. Aisles should be sized and located to help accommodate the overflow. If one-way entry pallets are used, remember to allow room for entry with a forklift. If hand operated forklifts are used, much less turning room is required. Forklift suppliers should be consulted for turning radius information during the planning stage.
Arch Vision
5.3
Airflow Patterns
Good airflow in storage is almost as important as having enough refrigeration capacity. A cross sectional view of a storage facility showing airflow pattern is given III-9. Ceiling-mounted evaporator coils with high-capacity fans will direct cold air across the ceiling a distance of at least 15 m (50 ft), providing there are no obstructions. Leave at least 0.5 m (1.5 ft) of space between the top of the pallets or racks of produce and the ceiling to allow unrestricted air passage to the back of the room. In storages kept at or near 0C, the air coming off the evaporator coils will likely be below 0C. The space above the produce helps temper this air, and prevent produce from freezing. Produce should be spaced at least 0.3 m (12") from walls downstream and upstream of the evaporator coils. This layout will allow the cooled air from the evaporators to pass down the wall, around the produce, and finally back to the coils. Leave at least a 0.2 m (8") air-gap on walls parallel to the room airflow. Air along the walls is often warmer, and the walls may need protection from forklift abuse.
Warmed Air Ceiling
Cold Air
0.5m (18) Minimum
Evaporator Coils 0.1m (4) Minimu m Space
WALL 0.3m (12) Minimum
Pallet or Rack Floor
Fig III-9. Cross-sectional view of a storage showing airflow patterns In rooms where both hot and cold produce are stored together, the hot produce should be placed under the evaporator coils, with cold produce placed near the downstream part of the room on the opposite wall. This allows cold air from the evaporator coils to contact cold produce first, then return through the hot produce. If produce was arranged in an opposite fashion, the cold air would contact hot produce first, warm up, then contact cold produce. This could cause undesirable condensation, or sweating, on cold produce. Avoid inside aisles that are parallel with the room airflow, since air could short-circuit directly down the aisle rather than around the containers. Air will always take the path of least resistance and will not go through or between pallets if there is a direct open area for it to flow instead. Small storages are more expensive per unit storage as there is relatively more vacant floor area around the perimeter to allow good airflow. Large storages are more cost effective per unit storage, but might not allow enough flexibility for different crop environment needs such as temperature and relative humidity. Because more produce is stored in large storages, there is often more time lost maneuvering pallets or racks. Wider aisles may be needed in this case. It might be more effective to have two smaller storages, one used for _________________________________________________________________ 25 25 Pakistan Horticulture Development & Export Board
Arch Vision
forced-air rapid cooling of freshly picked hot product, and the other used for cold packed product. Most storages have walls between 2.4 m to 4.8 m (8' to 16') high. Low walls under 2.4 m (8') restrict airflow, future changes in stacking arrangements, and other uses during the off-season, and should not be used. In general, making the walls a little higher doesn't cost that much more, and it barely affects the refrigeration needs from the standpoint of more heat gain due to more wall surface area. For instance, increasing the wall height from 2.4 m to 3.6 m (8' to 12') in storage with a floor area of 90 m2 (1000 ft2) represents a 50% increase in wall height. However, the increased construction and refrigeration costs would likely rise only about 15%. For similar volumes of produce stored, it is usually less expensive to stack produce higher than to spread it out on the floor. That is, for containers that allow stacking on each other, the floor area and construction costs are reduced. Stacking higher is not always possible for some containers, and forklift capital and operating costs increase with lifting height requirements. In some cases, steel shelving racks can be installed to accommodate pallets that will not stack. Figure III-10 shows three holding storage sizes that will each accommodate 192 bulk bins, 1.2 m x 1.0 m x 0.6 m (48" x 40" x 24"), for produce such as Orange & Mango.
A= 32 x 40 x 10 height Floor Area of 1280 ft2 48 Bins / Layers x 4=192 Bins
B= 32 x 32 x 13 height Floor Area of 1024 ft2 31 Bins / Layers x 6=192 Bins
C= 24 x 32 x 18 height Floor Area of 768 ft2 24 Bins / Layers x 8=192 Bins
Fig III-10. Plan view of three storage sizes and layouts for the same volume of produce In storage A, four layers of bins are stored. A high percentage of this storage's cost is for concrete in the floor and foundation, and for the large roof system. In storage B, six layers of bins are stored. Concrete costs are reduced and the roof area is smaller, however the higher walls may need more structural considerations. In storage C, eight layers of bins are stored. Although concrete and roof costs are reduced, the high walls will require much more structural considerations.
Arch Vision
5.4
Refrigeration System
The refrigeration system in a cold storage is usually a vapor compression system comprising the compressor, condenser, receiver, air-cooling units and associate piping and controls. In smaller cold rooms and walk-ins the practice is to use air-cooled condensing units with seal, semi-sealed or open type compressors. In the light of the CFC phase out the trend now is to use HCFC-22, HFC-134a or other substitute refrigerants. In the medium and large sized units say 500 M.T and larger capacities, the practice is to use a central plant with ammonia as the refrigerant. It is estimated that almost 95% of the large cold store units in Pakistan have ammonia refrigeration systems. Needless to say, that ammonia has proved itself as an economical and reliable refrigerant, especially, in the industrial refrigeration field including cold stores. Modular HCFC-22/HFC units, which are compact, light weight and easy to maintain are being used in medium and large sized units with pre-fab insulated panels. However, the selection of the system and the refrigerant is a matter of designer's choice for a particular application. Reciprocating compressors of slow speed type have been used on a large number of cold store units in the past. The medium speed reciprocating compressors with speeds ranging from 750 to 1450RPM, with a better energy efficiency and built-in capacity control have been installed in most of the recent units. For very large cold stores and frozen food stores, screw compressors are being preferred. Screw compressors have very few moving parts and offer advantage of steeples capacity control in the range of 10 to 100%. Absorption refrigeration systems, especially those based on Ammonia also offer an alternative to vapour compression systems. The absorption system has a basic advantage in that it can work on direct thermal heat available from any type of fuel oil or other agricultural waste. The saving in the operational cost would be considerable and the higher initial cost could be recovered through energy savings in 3 to 4 years. A proper study has to be made in each case before settling for the absorption system. The hydroflorocarbon (HFC) condensing units are mostly air-cooled type although watercooled units with shell and tube condensers find application in a few of the large sized systems. In ammonia plants the types of condensers used are the atmospheric or the evaporative. The evaporative condensers consume less quantity of water for plant operation and are generally preferred on large cold stores units. There are a number of designs of product coolers or air-cooling units available in the market. The old cold stores in used for bulk storage have bunker type coils installed on _________________________________________________________________ 27 27 Pakistan Horticulture Development & Export Board
Arch Vision
the top floor with conventional ceiling fans used for air circulation over the coils. These units occupy large volumes in the cold store, carry large quantities of ammonia and have a very inefficient cooling performance. In cold stores constructed later, floor mounted aircooling units with prime surface coils and sheet metal air distribution ducting have been used (Refer Fig.III-11). Finned coils have also been used in these units in some cases.
Fig III-11. Section through a typical multi floor bulk cold store with floor mounted A.C unit with ducting However, the recent trend is to use ceiling mounted units with finned coils and axial flow fans with aluminium or stainless steel impellers and adjustable pitch. These units are compact and occupy less space. Ammonia refrigeration plants mostly employ gravity fed systems with flooded coil evaporators, where a certain level of refrigerant is maintained in the evaporator coil. In case of larger cold store units the trend is to use liquid recirculation pumps for the circulation of low temperature and low pressure refrigerant. This system offers the advantage of a centralized control land an efficient performance of the evaporator coils due to force circulation of he liquid refrigerant.
Arch Vision
6-
COLD STORE OPERATION
Any fruit and vegetable storage facility must operate reliably. Equipment maintenance, monitoring and management are integral parts of all the activities. More specifically, the aspects that need special attention when managing a cold storage system are:

Condensation and humidity control Temperature control Sanitation Maintenance Container design and positioning Storage compatibility of commodities
6.1
Condensation And Humidity Control
The relative humidity in refrigerated storage must be within the optimum range for the commodity. For most fruits and vegetables, the optimum relative humidity is 9095 percent. When relative humidity inside the refrigerated storage is less than 90 percent, the facility should use a humidifier. The relative humidity of the storage can be monitored with a recording hygrometer or at intervals with a sling psychrometer. 6.2 TEMPERATURE
The air-to-coil temperature differential of the refrigeration unit must be no greater than 3C. The temperature differential equals the difference between the temperature of the refrigerant entering the coil and the temperature of the air in the refrigerated facility. Airto-coil temperature differentials greater than 3C condense water vapor in the air, reducing relative humidity in the facility and producing ice accumulations on the evaporator coils. When the humidity is lowered, air tends to absorb water from the stored produce, causing it to wilt. If the air-to-coil differential cannot be adjusted, the installation of a humidifier in the refrigerated storage is necessary. The addition of moisture to the facility by dumping water on the floor is a common practice to add moisture to the air. However, wetting the floor is not a good plant sanitation procedure because it also wets hidden and hard-toreach places where disease organisms can grow. The removal of ice accumulations on the coils is necessary to keep the refrigeration unit operating properly. Ice accumulations make the equipment operate for longer periods of _________________________________________________________________ 29 29 Pakistan Horticulture Development & Export Board
Arch Vision
time to maintain the temperature in the refrigerated storage, consuming more electricity and reducing the lifetime of the refrigeration unit. Some of the ways to eliminate ice accumulations on the coils are electrical defrost, warm water sprays, reverse refrigerant flow, and equipment shutdown for 68 hours. The selection of one of these depends on the equipment and facility size. 6.3 TEMPERATURE CONTROL
A thermostat is important in the refrigerated facility. The thermostat controls the operation of the refrigeration unit so a desired temperature can be maintained in the storage. The thermostats thermometer should not be used to monitor the storage temperature. A separate recording thermometer should be installed for this purpose. This type thermometer will be helpful in determining whether storage facilities are maintaining ideal conditions. A thermometer that fixes the maximum and minimum is necessary to check the pulp temperature of the produce. A comparison of the produce pulp temperature, the amount of time the produce has been in storage, and the thermostat setting can indicate to the operator if the thermostat needs resetting or the equipment needs adjusting. The refrigerated facility should be equipped with more than one thermometer so they can be compared and recalibrated if necessary. To prevent under cooling or chill injury to the produce, and the resulting economic losses, readings of a sling psychrometer and settings of the thermostat and humidistat must be compared. These thermometers, however, indicate the air temperature in the facility and not the produce temperature. The most important temperature to control is the produce temperature. For this reason, it is necessary to check the pulp temperature of the produce. A comparison of the produce pulp temperature, the amount of time the produce has been in storage, and the thermostat setting can indicate to the operator if the thermostat needs resetting or the equipment needs adjusting. The refrigerated facility should be equipped with more than one thermometer so they can be compared and recalibrated if necessary. To prevent under cooling or chill injury to the produce, and the resulting economic losses, readings of a sling psychrometer and settings of the thermostat and humidistat must be compared. 6.4 SANITATION
Every commodity requires special sanitation procedures. To prevent contamination of produce, the cleanliness and sanitation of the storage room and containers must be assured. The removal of condensation water, dirt, residuals, and trash from the storage room will help maintain produce quality and extend the life of the facility. If mold is present on the walls, floor or containers, they must be disinfected with a solution of 0.50 percent sodium hypochlorite, prepared by mixing 1 gallon of chlorine bleach with 9 gallons of water. This solution must be applied where needed and the surface vigorously brushed. After cleaning with the bleach solution, it is best to leave the refrigerated storage open to the air to dry. Cleaning walls, floor and containers with this solution is a good pre and post-season practice for every storage facility. If there are problems with decay, _________________________________________________________________ 30 30 Pakistan Horticulture Development & Export Board
Arch Vision
cleaning should be done more often, and handling practices should be changed to ensure a cleaner workplace. 6.5 MAINTENANCE
Refrigerated storage for produce calls for regular inspection of refrigeration coils, fans, motors, compressor, ducts, doors, locks and hinges, lights, and any other equipment. When inspecting the refrigeration coils, all dust and dirt must be removed. Adjustments should be made so there are no parts touching the fans or other moving elements. Belts should have protective covers at all times; if a cover is not good, it must be fixed, but not removed. Any unusual noise must be inspected and repaired. The oil level in the compressor must be checked, changed, and maintained. Doors or seals must be checked to prevent air infiltration if any. 6.6 STORAGE FACILITY LOADING
Following factors determine how produce should be loaded into storage:

Period of storage Maturity of ripeness at harvest Packing type Produced are pre-cooled or not The size and shape of the storage facility Mechanical or manual loading
Standard practice is first in, first out, whether the produce is stored a few hours or a few months. This ensures that each lot will be in storage a minimal time. In order to keep track of the storage time, containers should be clearly labeled on the ends with the date the produce entered storage. It is recommended that inventory cards for produce that goes into cold storage be kept in a safe place. These cards should list type of produce, quantity, harvest date, packing date, precooling method used, storage entry date, and special handling procedures. For long-term storage, there are exceptions to the first-in, first-out rule. In apples, individual cultivars can have a different storage life, depending on the maturity at harvest. At mid-maturity, apples have the longest storage life, while at early and late maturity; their storage life is shorter. To maximize the storage life of all fruit, careful management is required in loading the facility. Early season apples are sold first and stacked closer to the door or to the storage entrance. Mid-season apples should be stored in the back of the cooler. Late-season apples should be stacked in the middle and front, replacing the early apples as they are removed from storage. Late apples should be sold next and finally, the mid-season apples. _________________________________________________________________ 31 31 Pakistan Horticulture Development & Export Board
Arch Vision
6.7
PACKING CONTAINER DESIGN AND POSITIONING
The packing container design and its positioning in the refrigerated storage facilities must allow for air circulation within containers and around produce. Containers should not obstruct air circulation. There should be 68 inches space between the containers and the walls, and at least 18 inches between containers and the ceiling. Guidelines painted on the floor and walls are helpful in getting containers and pallets spaced correctly. The cold air must move freely not only around the containers but also around the produce. For that reason, produce containers should have from 58 percent of the lateral area open (perforated), and 35 percent of the bottom area open. A properly designed container should be structurally sound and allow air circulation for the produce within the containers. General stacking pattern for produce is shown in Figure III-12.
Fig III-12. Proper Container Stacking in Cold Storage
Arch Vision
6.8
STORAGE COMPATIBILITY
Precaution is necessary when storing different types of produce together. Warm-season produce needs temperatures of 7C13C and will suffer chilling injury if stored at temperatures best for cool season produce (0C2.5C). If cool-season produce is stored at higher temperatures, its storage life are shortened Commodities that are ethylene sensitive should not be mixed with ethylene producing ones. Good management of storage facility operations is important to make it efficient and profitable. It is good to keep in mind that produce quality cannot be improved; it can only be maintained.
Arch Vision
7-
TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD STORAGES
Typical layout plans for 1000 ton and 500 ton storages are developed for providing guide line for area calculation and space utilization for pallets and are enclosed as Figure III-13 & III-14. However the dimension of cold storages can only be designed on the basis of available land. Based on the cold storages requirement at airports (Refer Table # III-2) the typical layout plans are prepared. Fig # III-15 indicates the layout for Karachi & Lahore Airport facilities and Figure # III-16 indicates the layout for other airports. Enough land for container movement is included for costing of land required for airports facilities. Since the seaports need 5000 ton cold storage which will be multiple of 500 ton capacity and allied facilities.
Arch Vision
Fig. III-13 1000 Tons (800 Pallets) Cold Store Layout _________________________________________________________________ 35 35 Pakistan Horticulture Development & Export Board
Arch Vision
Fig. III-14 500 Tons (400 Pallets) Cold Store Layout
Arch Vision
14 M
12 M
Processing Hall
5M
3M
Capacity Pallets Size
36 Pallet Chilled 18 Pallets Freezed Euro 1.2x1.0x1.6 M
Fig. III-15 Typical Cold Storage Layout Plan at Karachi & Lahore Airports _________________________________________________________________ 37 37 Pakistan Horticulture Development & Export Board
Arch Vision
10.2 M
12 M
Processing Hall 5M 3M
Fig. III-16 Typical Cold Storage Layout at Faislabad, Multan, Quetta, Peshawar & Islamabad
Arch Vision
8- PROPOSED MANAGEMENT STRUCTURE
General Manager (Cold Storage)
Quality Control Officer
Manager Finance & Manager
Operation & Maintenance Engineer
Office Staff
Technicians
Labours
Fig # III-17. Management Structure A general management organogram is provided in figure III-17. The number of office staff, technicians and labours will be varied based on capacity of proposed facility. These are catered for while preparing operation cost. The Board of Directors of the proposed private limited company will formulate policies for all cold storage facilities to enable them for their successful operation and sustainability. It is suggested that for first two years the Chairman of Board of Directors will be from private sponsoring company. For forthcoming years chairman will be elected from Board of Directors in rotation from public and private sponsors.
Arch Vision
9- COSTING OF PROJECT A detailed area calculation for both covered and external areas are prepared along with the land requirement for various capacities cold storages are prepared and enclosed as Table III-7.
Table III-7: Area Calculation for Cold Store Facilities
5000 T Sr # Description CS I. R.C.C Structure Covered Area (Sq.M) Cold Storage Plant Room Plant Room Office Laboratory Worker Sitting Room Wash Rooms Cold Storage Office Change Room Car Parking (6 Cars & 4 Cars Special Only) Total I II External Parking Facilities for Trailors (Sq.M) Truck & Container Movement (Sq. M) Total I + II III Land Requirement 1000 1500 8456 3 Acre 5475 x (5x1095) 150 30 16 60 60 150 60 45 6046
3,000 T CS
2,000 T CS
1,500 T CS
1,000 T CS
500 T CS
250 T CS
3285 2190 (3x1095) (2x1095) 150 30 16 60 60 150 60 45 3856 93 30 16 42 42 150 42 30 2635
1869 (2x623) 93 30 16 42 42 150 42 30 2314
1620 (4x405) 93 30 16 42 42 150 42 30 2065
603 93 30 16 42 42 150 42 30 1068
405 93 30 16 42 42 150 42 30 850
1000 1500 6356 2 Acre
1000 1500 5135
1000 1500 4814
1000 1500 5814 1.5 Acre
1000 1500 5565 1 Acre
500 1000 2350 1 Acre
2 Acre 1.75 Acre
Arch Vision
Costing of all proposed cold stores inclusive of land, building, plant and machineries, import expenses, erection / installation charges, utilities connection, pre-operating expenses, consulting charges and contingencies are calculated and included as Table III 8 to III 23 which are self explanatory. For land and building details please refer Table III-7. Controlled atmosphere storages are suggested for storing apple and for CA cost of ethylene scrubber / humidity controller is added during costing. Total project cost of all proposed 13 Nos. of CS facilities at production and market area and 10 Nos. CS facilities at sea ports and airports are summarized in Table III-24.
Arch Vision
TABLE III-8: 1 CS (3000 TONS) AT SARGODHA PRODUCTION AREA FOR KINNOW Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 6,000,000 3,600,000 4,000,000 3,000,000 16,600,000 2,490,000 1,328,000 2,600,000 3,439,340 5,055,830 3,864,098 81,146,068 41,644,800 2,124,000 43,768,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 2,000,000
Arch Vision
TABLE III-9: 1 CS (1,500 TONS) AT SARGODHA F & V MARKET FOR FRUITS & VEGETABLES Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 4,000,000 1,800,000 4,000,000 2,000,000 11,800,000 1,770,000 944,000 2,000,000 2,821,460 4,147,546 3,169,910 66,568,117 35,791,200 2,124,000 37,915,200 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 2,000,000
Arch Vision
TABLE III-10: 1 CS (5,000 TONS) AT KOT MOMIN FOR KINNOW Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 8,000,000 6,000,000 4,000,000 4,000,000 22,000,000 3,300,000 1,760,000 3,000,000 5,587,640 8,213,831 6,277,714 131,831,984 76,096,800 2,596,000 78,692,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 3,000,000
Arch Vision
TABLE III-11: 1 CAS (5,000 TONS) AT ISLAMABAD (SECTOR I-9) FOR KINNOW, APPLE, POTATO Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Ethyelyne Scrubber/Humidity Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 8,000,000 6,000,000 4,000,000 150,000 4,000,000 22,150,000 3,322,500 1,772,000 3,000,000 5,596,865 8,227,392 6,288,078 132,049,634 76,096,800 2,596,000 78,692,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 3,000,000
Arch Vision
TABLE III-12: 1 CAS (5,000 TONS) AT PESHAWAR FOR PEACH, APPLE, POTATO Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Ethyelyne Scrubber/Humidity Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 8,000,000 6,000,000 4,000,000 150,000 4,000,000 22,150,000 3,322,500 1,772,000 3,000,000 5,596,865 8,227,392 6,288,078 132,049,634 76,096,800 2,596,000 78,692,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 3,000,000
Arch Vision
TABLE III-13: 1 CAS (2,000 TONS) AT MARDAN FOR PEACH AND APPLE Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Ethyelyne Scrubber/Humidity Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 6,000,000 2,400,000 4,000,000 150,000 2,500,000 15,050,000 2,257,500 1,204,000 3,000,000 3,244,675 4,769,673 3,645,393 76,553,250 39,258,009 2,124,000 41,382,009 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 2,000,000
Arch Vision
TABLE III-14: 1 CAS (2,000 TONS) AT WAZIRISTAN FOR APPLE Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Ethyelyne Scrubber/Humidity Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 6,000,000 2,400,000 4,000,000 150,000 2,500,000 15,050,000 2,257,500 1,204,000 3,000,000 3,244,675 4,769,673 3,645,393 76,553,250 39,258,009 2,124,000 41,382,009 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 2,000,000
Arch Vision
TABLE III-15: 1 CS (1,000 TONS) AT CHITRAL FOR FRUITS & VEGETABLES Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 4,000,000 1,200,000 4,000,000 1,500,000 10,700,000 1,605,000 856,000 1,725,000 2,586,315 3,801,884 2,905,725 61,020,234 33,102,009 1,988,300 35,090,309 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 1,750,000
Arch Vision
TABLE III-16: 1 CS (1,000 TONS) AT CHAMAN FOR FRUITS & VEGETABLES Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 4,000,000 1,200,000 4,000,000 1,500,000 10,700,000 1,605,000 856,000 1,725,000 2,586,315 3,801,884 2,905,725 61,020,234 33,102,009 1,988,300 35,090,309 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 1,750,000
Arch Vision
TABLE III-24: TOTAL PROJECT COST Sr. # 1 2 3 4 5 6 7 8 9 10 11 Description Total Cost of Land @ 1,000,000 per acre at an Average\ Total Building 1,013,128,636 Total Plant & Machinery 338,994,000 Total Import Expenses including Clearing Charges & Duties (15%) Total Erection / Instalation (8%) 27,119,520 Total Utilities Connections 54,850,000 Total Pre-operating Expenses (5%) 76,547,061 Furniture/Fixture 6,900,000 Vehicles 23,000,000 Total Consulting Charges (7%) 114,617,182 Total Contingenious (5%) 87,600,275 Total Project Cost 1,839,605,774 50,849,100 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 46,000,000
Cold Chain Project Final Report, Volume-III Cold Storages TABLE III-17: 1 CAS (5,000 TONS) AT QUETTA FOR APPLE Sr. # 1 2 Description Cost of Land @ 3,000,000 per acre Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including double reach fork lift, hand pallets and safety equipments Ethelyne Scrabber / Humidity Controller Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost Unit Unit Price Pak Rs. Amount Pak Rs.
Arch Vision
Total Amount Pak Rs. 3,000,000
76,096,800 2,596,000 78,692,800
8,000,000 6,000,000 4,000,000 150,000 4,000,000 22,150,000 3,322,500 1,772,000 3,000,000 5,596,865 8,227,392 6,288,078 132,049,634
Arch Vision
TABLE III-18: 1 CS (5,000 TONS) AT TURBAT FOR DATES & OTHER FRUITS Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 8,000,000 6,000,000 4,000,000 4,000,000 22,000,000 3,300,000 1,760,000 3,000,000 5,587,640 8,213,831 6,277,714 131,831,984 76,096,800 2,596,000 78,692,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 3,000,000
Arch Vision
TABLE III-19: 1 CS (5,000 TONS) AT KHAIRPUR FOR DATES Sr. # 1 2 Unit Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 8,000,000 6,000,000 4,000,000 4,000,000 22,000,000 3,300,000 1,760,000 3,000,000 5,587,640 8,213,831 6,277,714 131,831,984 76,096,800 2,596,000 78,692,800 Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 3,000,000
Arch Vision
TABLE III-20: 1 CS (3000 TONS) AT SUKKUR FOR DATES & OTHER FRUITS Sr. # 1 2 Description Cost of Land @ 1,000,000 per acre at an Average Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment including Double Reach Forklift, Hand Pallets & Safety Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 6,000,000 3,600,000 4,000,000 3,000,000 16,600,000 2,490,000 1,328,000 2,600,000 3,439,340 5,055,830 3,864,098 81,146,068 41,644,800 2,124,000 43,768,800 Unit Unit Price Pak Rs. Amount Pak Rs. Total Amount Pak Rs. 2,000,000
Arch Vision
TABLE III-21: 2CS (500 TONS) AT KARACHI & LAHORE AIRPORTS FOR FRUITS & VEGETABLES Sr. # 1 2 Description Cost of Land @ 3,000,000 per acre for Air Port & See Ports on an average * Building Cost of RCC Structure @ Rs. 10,800 / SqM (See Refer III-15) Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Handling Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 2 1,600,000 3,200,000 2 2 2 4,667,000 125,000 1,500,000 9,334,000 250,000 3,000,000 12,584,000 1,887,600 1,006,720 3,200,000 1,535,716 2,257,503 1,725,377 36,232,915 2 2 3,456,000 1,062,000 6,912,000 2,124,000 9,036,000 Unit 2 Unit Price Pak Rs. 1,500,000 Amount Pak Rs. 3,000,000 Total Amount Pak Rs. 3,000,000
* Land for only cold storage (covered area) is included for costing by assuming that trucks and containers movement area is already available at airport premises.
Arch Vision
TABLE III-22: 5CS (200 TONS) AT FAISALABAD, MULTAN, QUETTA, PESHAWAR & ISLAMABAD AIRPORTS FOR FRUITS & VEGETABLES Sr. # 1 2 Unit 5 Unit Price Pak Rs. 500,000 Amount Pak Rs. 2,500,000 Total Amount Pak Rs. 2,500,000
Description Cost of Land @ 3,000,000 per acre for airports & seaports on an average * Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M
5 5
2,430,000 1,062,000
12,150,000 5,310,000 17,460,000
Plant & Machinery Cost of Refrigeration Equipment, Handling Equipment Standby Generator 5 5 5 4,667,000 125,000 1,500,000 23,335,000 625,000 7,500,000 31,460,000 4,719,000 2,516,800 5 1,600,000 8,000,000 8,000,000 3,332,790 4,899,201 3,744,390 78,632,181
4 5 6 7 9 10
Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost
* Land for only cold storage (covered area) is included for costing by assuming that trucks and containers movement area is already available at airport premises.
Arch Vision
TABLE III-23: 3CS (5000 TONS) AT PORT QASIM, KPT & GWADAR PORT FOR FRUITS & VEGETABLES Sr. # 1 2 Description Cost of Land @ 3,000,000 per acre for airports & seaports on an average * Building Cost of RCC Structure @ Rs. 10,800 / SqM Cost of Boundary Wall @ Rs. 5900 / M 3 Plant & Machinery Cost of Refrigeration Equipment, Racking System 4 High Handling Equipment Standby Generator 4 5 6 7 9 10 Import Expenses including Clearing Charges & Duties (15%) Erection / Instalation (8%) Utilities Connections Pre-operating Expenses (5%) Consulting Charges (7%) Contingenious (5%) Total Cost 3 3,000,000 9,000,000 3 3 3 3 8,000,000 6,000,000 4,000,000 4,000,000 24,000,000 18,000,000 12,000,000 12,000,000 66,000,000 9,900,000 5,280,000 9,000,000 16,762,920 24,641,492 18,833,141 395,495,953 3 3 76,096,800 2,596,000 228,290,400 7,788,000 236,078,400 Unit 3 Unit Price Pak Rs. 3,000,000 Amount Pak Rs. 9,000,000 Total Amount Pak Rs. 9,000,000
Arch Vision
10LOAN Long Term Loan Total Loan EQUITY Sponsors Equity Government Equity Private Sponsors Equity Total Sponsor Equity TOTAL FINANCING
PROPOSED MEANS OF FINANCING
70%
1,287,724,042 1,287,724,042
15% 15%
275,940,866 275,940,866 551,881,732
100%
1,839,605,774
Debt equity ratio is taken as 70:30 and 70% of total project cost will be borrowed from bank as long term loan on 12% per annum interest rate. But as per government's policy for codl chain 6% mark up will be paid by government of Pakistan and the investor / sponsor has to pay only 6% on loan amount. Equal public private partnership is proposed and as per this arrangement government equity will be 15% and private sponsors equity will be 15%. Corporate setup of project will be a private limited company.
Arch Vision
11- FINANCIAL ANALYSIS A detailed financial analysis is carried out and enclosed in this section. Projected Income Statement is prepared and enclosed as Table III-25. The key assumptions as detailed in Section 11.1 is made basis for calculating total sale. Projected Profitability Statement, inclusive of total sales, gross profit, operating expenses, operating profit and non operating profit is developed making basis of key assumptions given in section 11.1 and enclosed in section 11.2. The projected profitability statement clearly indicates that the project can be successfully operated from very first year. In continuation of above Project Cash Flow Statement is prepared and enclosed in Section 11.3. According to the projected cash flow Internal Rate of Return (IRR) is 30.81 and Net Present value (NPV) is Rs. 3.09 billion. Projected Balance Sheet is also prepared and enclosed in section 11.4. Return on equity is calculated and found quite reasonably increasing with the passage of time. Break Even Analysis shows that breakeven point for first year is 82.53% which is a little bit risky but the break even points for second and third year decreases gradually (Refer Section 11.5), and from fourth year the project can be successfully operated at less then half of design capacity (i.e. 47.5%). Benefit Cost Ratio of the project is 1.76 and is given in Section 11.6. In the light of above discussion it is concluded that the project is financially viable, highly profitable and of very low risk. 11.1 1. KEY ASSUMPTION FOR OPERATION Cold Store Charges Rs. 1 / kg / month Cold Storage Capacity at Production Area and Markets = Cold Storage Capacity at Air Ports & Sea Ports = Total Cold Storage Capacity Cold Store Income Per Year Total Sale 2. Projected Income Statement Attached as Table III-25 _________________________________________________________________ 60 60 Pakistan Horticulture Development & Export Board = = =
43,500 Ton 16,800 Ton 60,300 Ton Rs.723 Million Rs.723 Million
Arch Vision
TABLE III-25: PROJECTED INCOME STATEMENT (CS)

(RS. IN MILLION)
Assumption Cold Storage Income
Design Capacity 100 % 723
Year 1 60% 433.8
Year 2 70% 506.1
Year 3 80% 578.4
Year 4 90% 650.7
Year 5 90% 650.7
Year 6 90% 650.7
Year 7 90% 650.7
Year 8 90% 650.7
Year 9 90% 650.7
Year 10 90% 650.7
3.
Electricity Charges Electricity cost per month for 1000 ton Cold Storage Unit consumes by 1000 ton cold storage Average Unit Cost Total Storage Capacity Total Electricity Charges/ Year = = = = = = Rs. 124,200 28.75 Kw/Hr Rs. 6/60,300 Ton 89.87 Million Rs. 3% Electricity Charges
4. 5.
Diesel Expense Salaries
S. No. Description 1 2 3 4 5 6 7
No. of Salary Per Persons Total Salary Month per Month General Manager 23 30,000 690,000 Quality Control Officer 23 15,000 345,000 Manager Finance 23 25,000 575,000 Operating & Maintenance Engineer 23 20,000 460,000 Office Staff 46 8,000 36,800 Technicians 46 10,000 460,000 Labour 460 6,000 2,760,000 Total Monthly Salaries 5,326,800 Total Yearly Salaries 63,921,600 Amortization of Pre-operating Expenses Recovery Period = Promotional Expenses Depreciation = 5 Years 1 % of Sales
6. 7. 8.
Sr # 1 2 3 4 5
Description
Building Plant & Machinery Furniture/Fixture Vehicles Utilities etc.
Asset 1,013,128,636 416,962,620 6,900,000 23,000,000 257,067,746
Rate 5% 10% 15% 20% 10%
Amount 50,656,431 41,696,262 1,035,000 4,600,000 25,706,746 123,694,439
Total
9.
Financial Charges on Loan Normally 12% per annum interest is charged on loan but for cold chain project 6% markup will be paid by government of Pakistan. Therefore, 6% per annum interest on loan is considered for calculation of profitability. Since the repayment period of loan is 10 years 10% decrease in financial charges for coming years.
Arch Vision
11.2
Financial Results
The projected profitability statement, projected cash flow, balance sheet and other financial indicators are given on page numbers 67-71
Arch Vision
13- RECOMMENDATIONS This prefeasibility study is conducted to establish a complete cold chain system under National Trade Corridor Improvement Project and divided in to three interconnected links including export pack houses, cold storages and refrigerated containers. In this volume, recommendations for cold storages will mainly be discussed. Since the horticultural crops (fruits and vegetables) are highly perishable in nature and quality of produce deteriorate in very short period. To overcome the avoidable post harvest losses and to provide the local and international consumers with quality produce it becomes inevitable to establish an effective nation wide cold chain system. This will not only improve the fresh produce quality and reduce post harvest losses but also enhance the international trade opportunity. To develop a comprehensive national cold chain system, 13 cold storages at production and market areas and 10 facilities at airports and seaports (Table III-2 & III-3) are recommended in all four provinces of Pakistan. These facilities are mainly for Kinnow, Mango, Peach, Apple, Apricot, Potato, Onion, Grapes and Dates but can also be utilized for other fruits and vegetables.
PROJECT COST
For calculation of project cost land value is taken on an average, which may increase or decrease depending upon the selected sites. Total project cost inclusive of infrastructure, machinery and plants and initial expenses comes out to be 1.84 billion (refer Table III-24)
Public private partnership

For the success of the project the corporate setup of the project is suggested as Private Limited Company comprising of public and private sponsors sharing equal equity. The public subscription will be equal to sponsors equity and the remaining project cost will be met through long term project financing on the basis of 70%-30% debt/equity ratio.
Viability of the project

The financial analysis clearly indicates that the project is financially viable because its Internal Rate of Return is 30.81% & NPV is Rs. 3.09 billions, which is quite high, and Return On Equity (ROE) is quite attractive for sponsors and Benefit Cost Ratio is 1.76.
Potential investors
Since the private sector sponsors equity participation would be required to the tune of Rs. 276 millions (15%) for which financially very sound sponsors are required to be selected by providing them the feasibility of the project and marketing campaign. _________________________________________________________________ 64 64 Pakistan Horticulture Development & Export Board
Arch Vision
The potential investors for participation in private sector equity are possible to be from exporters, big farmers, entrepreneurs, industrialist with experience in related fields industrial projects, Pakistanis living abroad, multinationals etc. It is also possible that a consortium of private investors who are willing to invest for these facilities may be formed comprises of various identified stakeholders as above.
Risk analysis
Although the Break Even Point of first year is on higher side but it comes down with the passage of year. From fourth year the project can be successfully operated on less than half of full design capacity (i.e. 47.5%) and it reduces the risk to quite an extent. Government must make sure that the high-tech plants and machinery must be used for the project to provide competitive edge over existing traditional cold stores. Once the cold storages are constructed in production areas growers will be benefited by getting higher prices of fruits and vegetables as well as timely direct payment from exporters. Apart from above export will be increased and export prices gaps can be significantly reduced.
Technical assistance
It must make compulsory that plants and machinery suppliers will provide technical know how to operate and maintain the project. Training programs for sponsors and investors shall be organized for technical and administrative staff including visit to foreign countries and attending local workshops. This will help in learning the functioning of state of the art facilities and proper implementation of the project.
ROLE OF STAKEHOLDERS
Potential users will be persuaded for extensive utilization of cold chain facilities for local distribution of fruits and vegetables as well as export. Private entrepreneurs and exporters should participate in equity. Government should organize initial investment in the range of Rs. 276 million as government 15% equity in the project. Ministry of Commerce must make mandatory to use the cold chain facilities by exporters Awareness campaign through workshops, banners, distribution of handouts highlighting the benefits of utilizing cold chain system shall be arranged to motivate the stakeholder.
Policy Recommendations for Sustainability of Project

For sustainability of the project policies shall be formulated in following areas. Employment of highly qualified managerial staff with relevant experience. Training of technical and administrative staff for human resource development. _________________________________________________________________ 65 65 Pakistan Horticulture Development & Export Board
Arch Vision
Constant Research and Development in horticulture sector especially cold chain. Future expansion and acquiring updated equipment and technologies. Constant follow up to explore and capture new export markets. Making mandatory to use cold chain facilities for export of fruits & vegetables.
11.2
PROJECTED PROFITABILITY STATEMENT

(RS. IN MILLION) Year 1 433.800 Year 2 506.100 Year 3 578.400 Year 4 650.700 Year 5 650.700 Year 6 650.700 Year 7 650.700 Year 8 650.700 Year 9 650.700 Year 10 650.700
Description Sales Cost of Goods Sold Machine Maintenance Direct Electircity Diesel Expense Total Gross Profit Operating Expenses Salaries & Remuneration Amortization of Pre-Operating Expenses Promotional Expenses Depreciation Total Operating Profit Non Operating Expenses Financial Charges on Long Term Loan Profit Before Tax Tax Profit After Tax Accumulated Profit
4.169 89.870 2.696 96.735 337.065
4.169 94.364 2.831 101.363 404.737
4.169 99.082 2.972 106.223 472.177
4.169 104.036 3.121 111.326 539.374
4.169 109.238 3.277 116.684 534.016
4.169 114.699 3.441 122.309 528.391
4.169 120.434 3.613 128.216 522.484
4.169 126.456 3.794 134.419 516.281
4.169 132.779 3.983 140.931 509.769
4.169 139.418 4.183 147.769 502.931
63.921 15.310 4.338 123.694 207.263 129.802
67.117 15.310 5.061 123.694 211.182 193.555
70.473 15.310 5.784 123.694 215.261 256.916
73.997 15.310 6.507 123.694 219.508 319.867
77.696 15.310 6.507 123.694 223.207 310.809
81.581 0.000 6.507 123.694 211.782 316.608
85.660 0.000 6.507 123.694 215.861 306.622
89.943 0.000 6.507 123.694 220.144 296.137
94.440 0.000 6.507 123.694 224.641 285.127
99.162 0.000 6.507 123.694 229.363 273.567
77.263 52.539
69.537 124.018
61.810 195.106
54.080 265.787
46.358 264.451
38.632 277.976
30.910 275.712
23.179 272.958
15.453 269.674
7.720 265.847
Exempted for 10 Years 52.539 52.539 124.018 176.556 195.106 371.662 265.787 637.449 264.451 901.900 277.976 1179.876 275.712 1455.589 272.958 1728.547 269.674 1998.221 265.847 2264.068
11.3
PROJECTED CASH FLOW STATEMENT

(RS. IN MILLION) Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sources Profit After Taxation Add Depreciation Add Ammortization Total Sources 52.539 123.694 15.310 191.543 124.018 123.694 15.310 263.022 195.106 123.694 15.310 334.110 265.787 123.694 15.310 404.791 264.451 123.694 15.310 403.455 277.976 123.694 0.000 401.670 275.712 123.694 0.000 399.406 272.958 123.694 0.000 396.652 269.674 123.694 0.000 393.368 265.847 123.694 0.000 389.541
Utilization Repayment of Loan Total Utilization 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770
Surplus Funds Balance B/F Balance C/F
62.773 0.000 62.773
134.252 62.773 197.024
205.340 197.024 402.364
276.021 402.364 678.385
274.685 678.385 953.070
272.900 953.070 1225.970
270.636 1225.970 1496.607
267.882 1496.607 1764.489
264.598 1764.489 2029.087
260.771 2029.087 2289.858
Net Present Value of Cash Outflow = NPV = Rs 3.086 billion, Assume Discount Rate = 11% Internal Rate of Return = IRR = 30.81%
11.4
PROJECTED BALANCE SHEET

Year 0 Year 1 62.773 46.000 1717.058 123.694 1639.364 Year 2 197.025 46.000 1717.058 247.388 1515.670 Year 3 401.592 46.000 1717.058 371.082 1391.976 Year 4 675.368 46.000 1717.058 494.776 1268.282 Year 5 945.718 46.000 1717.058 618.470 1144.588 Year 6 1211.628 46.000 1717.058 742.164 1020.894 Year 7 1472.113 46.000 1717.058 865.858 897.200 Year 8 1726.220 46.000 1717.058 989.552 773.506
(RS. IN MILLION) Year 9 1973.012 46.000 1717.058 1113.246 649.812 Year 10 2211.569 46.000 1717.058 1236.940 526.118
Cash Land Fixed Assets Depreciation Net Fixed Assets Intangible Assets Preoperating Expenses Amortization
0.000 46.000 1717.058 1763.058
76.547 76.547
76.547 15.310 61.237 1763.374 1287.724 128.772 1158.952 551.882 52.539 604.421 1763.373 433.800 52.539 8.692
61.237 15.310 45.927 1758.622 1158.952 128.772 1030.180 551.882 176.556 728.438 1758.618 506.100 124.018 18.349
45.927 15.310 30.617 1824.185 1030.180 128.772 901.408 551.882 371.662 923.544 1824.952 578.400 195.106 26.119
30.617 15.310 15.307 1958.957 901.408 128.772 772.636 551.882 637.449 1189.331 1961.967 650.700 265.787 32.505
15.307 15.310 -0.003 2090.303 772.636 128.772 643.864 551.882 901.900 1453.782 2097.646 650.700 264.451 32.395
0.000 0.000 0.000 2232.522 643.864 128.772 515.092 551.882 1179.876 1731.758 2246.850 650.700 277.976 33.497
0.000 0.000 0.000 2369.313 515.092 128.772 386.320 551.882 1455.589 2007.471 2393.791 650.700 275.712 33.315
0.000 0.000 0.000 2499.726 386.320 128.772 257.548 551.882 1728.547 2280.429 2537.977 650.700 272.958 33.092
0.000 0.000 0.000 2622.824 257.548 128.772 128.776 551.882 1998.221 2550.103 2678.879 650.700 269.674 32.825
0.000 0.000 0.000 2737.687 128.776 128.772 0.004 551.882 2264.068 2815.950 2815.954 650.700 265.847 32.510
Total Assets Long Term Loans Less: Repayment Total Liabilities Owners Equity Unappropriated Profit Total Equity Total Liabilities & Equity Sales Net Income ROE (%)
1839.605 1287.724 1287.724 551.882 551.882 1839.606
11.5
BREAK EVEN ANAYLSIS YEAR I YEAR 2 YEAR 3 433.800 506.100 578.400 Total Variable Fixed Total Variable Fixed Total Variable Fixed Description Operating Operating Operating Operating Operating Operating Operating Operating Operating Cost Cost Cost Cost Cost Cost Cost Cost Cost Machine Maintenance 4.169 2.918 1.251 4.169 2.918 1.251 4.169 18.340 7.859 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974 89.870 71.896 17.974 Diesel Expense 2.696 2.696 ---2.696 2.696 ---2.696 2.696 ---Salaries & Remuniration 63.921 51.137 12.784 67.117 53.694 13.423 70.473 56.378 14.095 Promotional Expenses 4.338 4.338 ---5.061 5.061 ---5.784 5.784 ---Financial Charges on Long Term 77.263 Loan ---77.263 69.537 ---69.537 61.810 ---61.810 Amortization 15.310 ---15.310 15.310 ---15.310 15.310 ---15.310 123.694 123.694 123.694 123.694 123.694 Depreciation ---123.694 ------Total 381.261 132.985 248.276 377.454 136.265 241.189 373.806 155.094 240.742 Sales
Sno. 1 2 3 4 5 6 7 8
Sales-V .cost Breakeven - %

Sales Sno. 1 2 3 4 5 6 7 8
300.815 82.534
369.835 65.215
423.306 56.872
YEAR 4 YEAR 5 650.700 650.700 Total Variable Fixed Total Variable Fixed Description Operating Operating Operating Operating Operating Operating Cost Cost Cost Cost Cost Cost Machine Maintenance 4.169 18.340 7.859 4.169 18.340 7.859 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974 Diesel Expense 2.696 2.696 ---2.696 2.696 ---Salaries & Remuniration 73.997 59.197 14.799 77.696 62.157 15.539 Promotional Expenses 6.507 6.507 ---6.507 6.507 ---Financial Charges on Long Term 54.080 Loan ---54.080 46.358 ---46.358 Amortization 15.310 ---15.310 15.310 ---15.310 123.694 123.694 123.694 123.694 Depreciation ------Total 370.323 158.636 233.716 366.300 161.596 226.734
Break Even Point (Q) =
FC x 100 Sale - VC
Break Even Point for year 1 = 82.53% Break Even Point for year 2 = 65.21% Break Even Point for year 3 = 56.87% Break Even Point for year 4 = 47.50% Break Even Point for year 5 = 46.36%
Sales-V .cost Breakeven - %
492.064 47.497
489.104 46.357
11.6
BENEFIT COST RATIO (RS. IN MILLION)
Description
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Factor based on 15% discount Sales
0.870
0.756
0.658
0.572
0.497
0.432
0.376
0.327
0.284
0.247
433.800 377.406 2920.269
506.100 382.612
578.400 380.587
650.700 372.200
650.700 323.398
650.700 281.102
650.700 244.663
650.700 212.779
650.700 184.799
650.700 160.723
Cost of Goods Sold Operating Expenses Total Cost
96.735 207.263 303.998 264.478 1657.079
101.363 211.182 312.545 236.284
106.223 215.261 321.484 211.536
111.326 219.508 330.833 189.237
116.684 223.207 339.891 168.926
122.309 211.782 334.092 144.328
128.216 215.861 344.078 129.373
134.419 220.144 354.563 115.942
140.931 224.641 365.573 103.823
147.769 229.363 377.133 93.152
Benefit Cost Ratio
1.762
12- IMPLEMENTATION PLAN A tentative implementation plan is prepared and given in Figure III-18
SL # Months Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Description
1 Pre-feasibility Report 2 PC - 1 3 Government Approval 4 Public / Private J.V.
5 Procurement of Land
6 Civil Works Opening L.C. / Machinery Procurement
8 Arrival of Machinery 9 Erection and Installation 10 Commissioning
Fig III-18: Implementation Plan

Vol 3 Cold Storages and Controlled

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Vol 3 Cold Storages and Controlled

Uploaded by

Copyright:

Available Formats

PAKISTAN HORTICULTURE DEVELOPMENT & EXPORT BOARD

405-406, Shaes Centre, Block 13 C, Gulshan-e-Iqbal, Karachi

Cold Chain Project Final Report, Volume-III Cold Storages

TYPES OF COLD STORAGE

2.1 2.2 2.3 2.4

MEDIUM TEMPERATURE COLD STORES

FROZEN FOOD STORES

DESIGN BASIS & TECHNICAL SPECIFICATIONS

_________________________________________________________________ 2 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

Factors to be Considered for Site Selection Size Determination

4.3 4.4 4.5

MECHANICAL OPERATIONS STRUCTURE AND THERMAL INSULATION REFRIGERATION LOAD

4.6 EFFECT OF HARVEST TEMPERATURE ON REFRIGERATED STORAGE

ENGINEERING DESIGN 5.1 Size and Layout Options

PRODUCE FLOW PATTERNS

COLD STORE OPERATION

CONDENSATION AND HUMIDITY CONTROL

_________________________________________________________________ 3 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

6.3 6.4 6.5 6.6 6.7 6.8

TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD STORAGES

PROPOSED MANAGEMENT STRUCTURE

PROPOSED MEANS OF FINANCING

_________________________________________________________________ 4 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

_________________________________________________________________ 5 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

VOLUME-III COLD STORAGE AND CONTROLLED ATMOSPHERE STORAGE

CURRENT STATUS & FUTURE NEEDS

_________________________________________________________________ 6 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

Sargodha (F&V MKT)

_________________________________________________________________ 7 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

Cold Storage (Airports/Seaports)

_________________________________________________________________ 8 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

Apple, Peach CAS (1) `

Apple, Peach, Potato CAS (1)

Apple CAS (1)

Waziristan Wana Sargodha Kinnow, Apple, Potato CAS (1)

Apple, F & V CAS (1)

Turbat Dates and other fruits CS (1)

Khairpur Dates CS (1)

Dates and other fruits CS (1)

CS: Cold Store; CAS: Controlled atmosphere Store

Cold Chain Project Final Report, Volume-III Cold Storages

EH + CS (Airport) CS (Sea Port s KPT & Port Qasim)

CS: Cold Stores; EH: Export House

Cold Chain Project Final Report, Volume-III Cold Storages

Notes: * Usual or recommended range; a relative humidity of 90-95% is recommended.

Specific CA combination depends on cultivar, temperature, and duration of storage. These

_________________________________________________________________ 11 11 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages

Kader, A. 2002. Postharvest Technology of Horticultural Crops (3 rd edition). Univ. of California

Medium Temperature Cold Stores

Frozen Food Stores

Cold Chain Project Final Report, Volume-III Cold Storages

Prefab insulated panel structure

Fig III-3: Medium Size Walk-in Freezer with Sliding Door

Cold Chain Project Final Report, Volume-III Cold Storages

_________________________________________________________________ 14 14 Pakistan Horticulture Development & Export Board

Cold Chain Project Final Report, Volume-III Cold Storages