Karachi Port offers new opportunities

Ports play an important role in the Logistics

supply chain and provide interfaces for the
change of mode of transportation of commodities
from sea to land through rail, trucks, pipelines.
Ports are recognized as the springboards for
economic development of the hinterland. This
implies that Ports must look beyond the narrow
limits of the port location and must have fast,
r e l i a b l e f l e x i b l e a n d c o s t -friendly intermodal
connections with inland corridors.
The Indus corridor starting with the two major
ports in the south that handle 95% of Pakistans
external trade and proceeding north carries almost 65% of Pakistans total
freight traffic. The corridor supports an area which contributes to almost
85% of Pakistans GDP. It is the gateway to the sea for landlocked
Afghanistan and has the potential to be an important trade corridor for the
Central Asian States.
Karachi Port is mindful of
logistic supply chain, which is the
stream of processes of moving
goods and services from the
customer order through the raw
materials stage, supply, production,
and distribution of products to the
customer. Logistics is that part of
supply chain process that plans,
implements, and controls the
efficient forward and reverse flow and storage of goods, services, and
related information from the point of origin to the point of consumption in
order to meet customers requirements (Council of Logistics Management,
U.S.A). These definitions sound very scholarly. To put it simply, the
Logistics Service deals with 7Rs: Right products, Right amount, Right
place, Right time, Right condition, Right price and Right information.
Opportunities of Logistics Services lie in improvement of complete
logistics system i.e. the infrastructure ( ports, railways, road, warehousing,
dry ports, pipelines etc.), the services ( Shipping and port services,
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trucking, railways, handling, warehousing, customs, insurance, banking,

Inland Container depots and freight forwarding) and the procedures(
legislation, regulation, administration, documentation, data etc.).
Present Government Policies support the growth of shipping, freight
forwarding, distribution, trucking, railroad transport, port and terminal
operation. Pakistans transportation
system is improving. Incentives are
there to build 21st century
expressways and state-of-the-art rail
and air links.The Government has
launched an initiative to establish an
efficient North-South National Trade
Corridor. The programme includes
further improvement of existing high
ways with building of warehousing,
cold storage, customs, immigration and electronic data processing
facilities at the border crossings. Karachi Port is already providing
concessionary rates for in-transit cargo. A Joint Kyrgyz- Pakistan
Ministerial Commission has been meeting
regularly to make the transit route to that
country most competitive.
Karachi Port is making itself
responsive to market demands. KPT has
identified some key capital projects that will
aid it to regain its niche as a Regional hub
while meeting the needs of land locked
countries. These projects include the development of a Cargo Village in
our Western backwaters over an
area of 1500 acres.
The reconstruction of KPTs
2.75 KMs in length berths to a
depth of 16 meters will provide
deeper berths for ships. The most
important project is the
development of ten deep draft
berths for handling Containers. At
a depth of 18 meters, with 600
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meters wide channel and over 3.5 KM

quay wall, this will be one of the most
modern Container Terminal. This
US$1.6 billion state of the art
container handling complex right at
the entrance to the harbour is called
the Pakistan Deep Water Container
Port (PDWCP). With the planned 18m
depth along side, it will be capable of
taking the biggest container ship
presently operating. The project is being carried out in phases and on
public-private partnership (PPP).
Phase I is USD 600 M project, which
will include 4 berths with 1500 m
quay wall. Concession agreement
with M/s Hutchison Port Holdings,
Hong Kong has already been signed
for the development of the Container
Terminal on four berths. The
dredging and reclamation contract
has been signed with CWE (China
Prime Minister of Pakistan, Syed Yousaf Raza
International Water and Electric
Gilani inaugurated start of Dredging and
Reclamation Works on 18th April 2009
Company) and reclamation works
started. The KPT awarded contract for Dredging and Reclamation Works to
M/s CWE of China and the project ground breaking ceremony was
performed by the Prime Minister of
Pakistan, on 18th April 2009 for start
of Dredging and Reclamation
Works. Under the agreement, the
CWE will carry out 32 million cubic
meters of dredging and 8 million
cubic meters of reclamation works.
The Container Terminal will have
both the road and rail hinterland
connections which will also include
Cargo Village in KPTs Western backwaters
connection with the proposed
Cargo Village at Western Backwaters. Contracts for the construction of
quay wall and marine protection works are being awarded
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Karachi Port has initiated many port connectivity projects. The

Connectivity to M-10 (Northern Bypass) and Lyari Expressway as well as
internal road and rail links of the Cargo
village have been planned. Similarly, the
Karachi Deep Draft Port will be linked
with railway and a cross channel bridge
connecting the new deep draft terminal
with Manora Island, Cargo Village and
Northern Bypass.
Performance of Karachi Port Trust
during the fiscal year 2008-09 registered
PORT BRIDGE OVER CHANNEL CROSSING
a healthy and positive trend despite
world wide recession. Total cargo handled during 2008-09 was a record
handling of 38.7 M tons which
included 26.96 M tons dry cargo and
11.77 M tons of liquid cargo. The
cargo growth has been 6.5% over last
five years. The total exports cargo
handled this year closed at 13.364
million tons which reflects a growth
of 14.47% made by Karachi Port when
compared with cargo handled during
preceding year. Export of bulk cargo
through Karachi Port was recorded to be 5.471 million tons, which is a
massive increase of 28.94%, as compared to the previous year. This is yet
another achievement of Karachi Port Trust. As regards the container
handlings, the Karachi Port had record handling of containers in the
concluding financial year as 1.250 million TEUs (Twenty Foot Equivalent
Units) were handled.
Pakistan International Container
Terminal (PICT) is a US $ 75 million project in
private sector. This Terminal at Berths 6-9
East Wharf has 600 m quay wall with - 13.5 m
depth and an area of 207,000sq.m.The
terminals planned capacity is 450,000 TEUs.
PICT is among one of the most
favoured terminals of Karachi Port

users.

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Karachi International Container Terminal (KICT) has 973 m long

berths and handling capacity of
700,000 TEUs. The terminal has an
overall area of 260,000sq.m with total
foreign investment of US$ 120
million. Now ships upto 12 M draft are
being berthed.
Karachi Port is modernizing the
port environment to facilitate private
sector investment and to strengthen
its exporters competitiveness.Port
Completion of KICT Phase III and ten
allowed construction of silos by
years of Terminal Operation in Karachi
Port is celebrated.
private sector. Millions of dollar
Investment was made by M/s Lucky
Cement, it is a shining example of an indigenous private sector investment,
of which Karachi port is proud of. Four cement silos of 24000 ton total
capacity have been built by M/s Lucky Cement behind the wharves for
stocking cement and then transferring this cement pneumatically from
silos to ship. This ensures fast turn
around of ships besides making the
cement exports competitive. KPT
talks of solutions and implementation
while offering investment
opportunities and circumventing
logistics challenges. The Cargo
Village, the reconstructed and
deepened berths, the Karachi Deep
Senator Babar Khan Ghouri addressing the
Water Port, all offer umpteen
gathering at inauguration of Silo Operation.
opportunities and solutions to
logistics challenges. Now it is upto our
valued investors to take this challenge.
As the world becomes a smaller
place, the Internet is enabling
companies of all sizes to develop new
online business models, which means
improving and altering the ways in
which companies use to operate and
interact with business partners,
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customers and suppliers. The new possibilities for processes (e.g. order,
entry, distribution, on-line payment) as well as dealing with the technical
issues have revolutionised the logistics industry. E-logistics has eliminated
intermediaries (such as wholesaler or retailers) and also fosters the
emergence of new players like logisticians, whose role is to adapt
traditional logistics chains to take into account the requirements of ebusiness. In the next few years, successful enterprises will restructure
their organization, process and technology infrastructure for successful ebusiness execution.
Increasing globalisation brings
both challenges and opportunities to
the port industry. Port Authority and
Container Terminals at Karachi have
improved Shipping Logistics by
integrating electronic transaction and
processing. This has increased
communications efficiencies across
multiple organizations and facilitated
faster import and export processes.
Projects have been implemented to improve overall efficiency of Pakistani
Customs Agencies through the Customs Administration Reform (CARE)
and PACCS (Pakistan Customs Computerized System), which is a one
window system and that window may open - any time at any place over the
web - depending on your own choice. As we continue on
the journey to internationalization we have to meet the
challenges of our global world and our client's logistics
requirements. In view of the above situation, the
government, in a true democratic spirit, took all
stakeholders on board and has
devised a strategy to go all out to
remain firm in these difficult
economic times, keep focused on
our strengths, and convert
challenges into workable
opportunities. Trade Policy 2009-12
aims to set the country on the path
of sustainable high economic growth through exports.
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The logistics opportunities are going to grow as Govt. of Pakistan

moves forward to implement National Trade Corridor Improvement
Programme (NTCIP). A National Trade Facilitation Strategy (NTFS) has
been prepared by the Govt. which has a time line Action Plan for
implementation by concerned ministries, organizations and relevant
stakeholders.
Consensus has been developed between concerned ministries on
Accession to TIR Convention on International Transport of
Goods Under Cover of TIR Carnets and the process is at final
stages. It is expected that the TIR system will facilitate
customs and transit through landlocked countries of Central
Asia.
Certification Rules and Code of
Conduct for Freight Forwarders have
been approved by our Govt. and soon a Mechanism
to monitor Freight Forwarders Performance will be in
place.
A new Afghanistan-Pakistan Transit Trade
Agreement has been drafted which will replace Afghan Transit Trade
Agreement of 1965, after completing negotiations with Afghanistan (which
have started with the 1st meeting of Afghan- Pakistan Joint Working Group
held in Islamabad on May 14, 2009) and signing of the Agreement before
end 2009. A quad-lateral transit trade agreement with CAR countries is
being finalized.
The government of Pakistan realizing the importance of logistics has
started to reform complete logistic system i.e. infrastructure, services and
procedures not just ports, rail and roads. We are ever mindful that there
will be as many opportunities as there will be challenges, and we are sure
of one thing - the future belongs to those who believe in their dreams.
(writer is Mrs. Nasreen Haque, Chairperson, Karachi Port Trust)

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