KARACHI PORT & ITS EXTENSION

The Port of Karachi is one of the South Asia's largest and busiest deep-water seaports, handling
about 60% of the nation's cargo (25 million tons per annum) located in Karachi, Pakistan. It is
located between the Karachi towns of Kiamari and Saddar, close to the main business district and
several industrial areas. The geographic position of the port places it in close proximity to major
shipping routes such as the Strait of Hormuz. The administration of the port is carried out by the
Karachi Port Trust, which was established in the nineteenth century.

History
The history of the port is intertwined with that of the city of Karachi. Several ancient ports have
been attributed in the area including "Krokola", "Morontobara" (Woman's Harbour) (mentioned
byNearchus), Barbarikon (the Periplus of the Erythraean Sea, and Debal (a city captured by
the Muslim general Muhammad bin Qasim in 712 CE). There is a reference to the early
existence of the port of Karachi in the "Umdah", by the Arab navigator Sulaiman al Mahri (AD
1511), who mentions "Ras al Karazi" and "Ras Karashi" while describing a route along the coast
from Pasni to Ras Karashi. Karachi is also mentioned in the sixteenth
century Turkish treatiseMir't l Memlik (Mirror of Countries, 1557) by
the Ottoman captain Seydi Ali Reis, which is a compilation of sailing directions from the
Portuguese island of Diu to Hormuz in the Persian Gulf. It warns sailors about whirlpools and
advises them to seek safety in "Kaurashi" harbour if they found themselves drifting dangerously.
There is a legend of a prosperous coastal town called Kharak in the estuary of the Hub
River (west of modern Karachi) in the late 17th and early eighteenth century.
In 1728 heavy rains silted up the harbour and resulted in the merchants of Kharak relocating to
the area of modern Karachi. In 1729, they built a new fortified town called Kolachi (also known
as Kalachi-jo-Kun and Kolachi-jo-Goth) on high ground north of Karachi bay, surrounded by a
16-foot (5 m) high mud and timber-reinforced wall with gun-mounted turrets and two gates. The
gate facing the sea was called "Kharadar" (salt gate), and the gate facing the Lyari River was
called "Mithadar" (sweet gate). The modern neighbourhoods around the location of the gates are
called Mithadar and Kharadar. Surrounded by mangrove swamps to the east, the sea to the
southwest, and the Layari river to the north, the town was well defended and engaged in a
profitable trade with Muscat and Bahrain. From 1729 to 1783 the strategic location of Kolachi
saw the town change hands several times between the Khans of Kalat and the rulers of Sind. In
1783, after two prolonged sieges the town fell to the Talpur Mirs of Sind, who constructed a fort
mounted with cannons on Manora island at the harbour entrance.
The prominence of the port attracted the British, who opened a factory in Karachi at the end of
the eighteenth century but disagreements with the Mirs on trade tariffs led to the closure of the
factory. The British were concerned about Russian expansion towards the Arabian Sea, so in
1839 they occupied Karachi and later the whole of the Sindh. The port served as a landing point
for troops during the First Afghan War. The river Indus was an important artery of
communication between Karachi and Jhirk Near Kotri Sindh, was an important river port.
The Indus flotilla used large quantities of firewood and it was kept to fuel steamboats. A number
of British companies opened offices and warehouses in Karachi and the population increased
rapidly. By 1852, Karachi was an established city with a population of 14,000 and a prosperous
overseas trade. The modern port began to take shape in 1854, when the main navigation channel
was dredged and a mole or causeway was constructed to link the main harbour with the rest of
the city. This was followed by construction of Manora breakwater, Keamari Groyne, the Napier
Mole Bridge and the Native Jetty Bridge. The construction of the wharves started in 1882, and
by 1914 the East Wharf and the Napier Mole Boat Wharf were complete while 1927 and 1944,
the West Wharf, the lighterage berths and the ship-repair berths were constructed between 1927
and 1944.
From the 1861 the Sindh Railway line connected Karachi to the cotton and wheat producing
areas of the Sindh and northern British raj and by 1899 Karachi was the largest wheat and cotton
exporting port in South Asia. The period between 1856 and 1872 saw a marked increase in trade,
especially during the American Civil War when cotton from Sindh replaced American cotton as
a raw material in the British textile industry and the opening of the Suez Canal in 1869. Another
major export was oil brought by rail from the Sui region in Balochistan. Karachi's importance as
a gateway to British Indiaincreased in 1911 when the capital was moved from Calcutta to Delhi.
Karachi was an important military base during theFirst World War (191418) because it was the
first British raj port of call for ships coming through the Suez Canal and was the gateway to
Afghanistan and the Russian Empire. In 1936 the Sindh district of the Bombay Presidency was
reorganised as a new province with Karachi as the capital instead of the traditional capital
of Hyderabad. This led to new public services and buildings, thus increasing its population and
importance. Karachi was again a military base and port for supplies to the Russian front during
the Second World War (19391945). In 1947, Karachi became the capital of the new nation
ofPakistan, resulting in a growth in population as it absorbed hundreds of thousands of refugees.
Although the capital moved to Islamabad in 1959, Karachi remains the economic center of
Pakistan, accounting for the largest proportion of national GDP based in part on the commerce
conducted through the Port of Karachi and Port Qasim. The port was destroyed by the Indian
Navy (codenamed Operation Trident) during the hostilities of the 1971 war.[4]Historical
Background The new trade corridor realism of Gwadar port for promotion and advancement of
economic activities can be justified in the historic reality of extensive regional and cross-
continental commerce existed between Europe and Asia (East, Central and South) over centuries
(Kazi, 2006). Historically, Seaport of Barbarikon, now known as Pakistan coast, used to be an
important and cost-effective trade node between these regions for economic activities through
land and sea network famous as Silk-route (79). Before the Arab conquest, the Great Kushans
ruled the entire region stretching from modern Central Asia, Afghanistan and Pakistan. Under
Kushans rule, coastal harbor of Barbarikon located between Gwadar and Karachi port, served
as a key regional trade hub on the warm waters of Arabian Sea for trading. The Barbarikon
coastal harbor further contributed in the cross-continental trade among Rome, China and
Kushans (p. 84). It is worth noting that land routes used by the Kushans rulers are the same being
used by the government of Pakistan, but with much improved infrastructure. Over the centuries,
these routes

Port facilities

A freightliner at the dock

The port comprises a deep natural harbour with an 11 kilometre long approach channel which
provides safe navigation for vessels up to 75,000 tonnesdeadweight (DWT). The main areas of
port activity are two wharves; East Wharf with seventeen vessel berths and West Wharf with
thirteen vessel berths. The maximum depth alongside the berths is currently 11.3 metres. The
two wharves extend in opposite directions along the upper harbour the East Wharf northeast
from Kiamari Island and the West Wharf southwest from Saddar town. The two wharves each
include a container terminal:

Karachi International Container Terminal (KICT) opened in 1996 at West Wharf berths 28-
30. It has a handling capacity of 300,000 TEUs per annum and handles container ships up to
11-metre draught. The total quay length is 600 metres divided into two container berths. The
terminal is equipped with three Panamax cranes and one post-Panamax crane.

Map of Karachi, indicating Karachi Port (Click to enlarge)

 Pakistan International Container Terminal (PICT) in 2002 at East Wharf berths 6-9. It has a
handling capacity of 350,000 TEUs per annum and handles container ships up to 11.5-metre
draught. The total quay length is 600 metres divided into two container berths. The terminal
is equipped with two Panamax cranes.

KICT and PICT have a nearby competitor in the privately operated Al-Hamd International
Container Terminal (AICT), which opened in 2001 at a site west of the Layari river. AICT is
situated next to theSindh Industrial Trading Estate, the new truck stand at Hawkes Bay Road
and close to the RCD Highway, Super Highway and the future Layari Bypass.
There are also three liquid cargo-handling berths (oil piers), two ship repair jetties and a shipyard
and engineering facility.[5] The shipyard carries out shipbuilding and repair for both commercial
and military customers on a 29-hectare (70 acres) site at the West Wharf. The facilities include a
large shipbuilding hall, three shipbuilding berths, two dry-docks and three foundries.[6]

Environmental concerns

The Port of Karachi with some of the city residential areas visible

The area around the harbour includes several mangrove forests which are constantly under threat
from human activities. To the east of the port lies Chinna Creek, which covers about 6 km and is
dotted with mangrove islands. To the southwest of the port is another much larger mangrove
forest in the bay formed by several islands and Manora breakwater; the river Layari flows into
this bay, bringing waste from upstream suburbs.[10]
The beach immediately east of the harbour was the scene of a significant oil spillage when the
Greek-registered Tasman Spirit ran aground on 28 July 2003.[11] The environmental impact
included large numbers of dead fish and turtles and damage to a key mangrove forest, as well as
dozens of people suffering nausea.[12] 6.4 Regional Energy Requirement The rapid economic
development has resulted in the depletion of energy resources which have created a sense of
conscious among energy starved nations. Trends reflect that worlds growing energy demand
will continue to mount and grow at fast momentum. According to United Nations Conference on
Trade and Development (UNCTAD), by 2020, natural gas requirement will increase by 2.77
percent per annum while crude oil seaborne shipments will increase by 3.5 percent in the same
period (2004). Now nations are reviewing their strategies to secure their future. China, India and
Pakistan are vulnerable to energy dilemma and there is a high time for these countries to
capitalize energy potential of Central Asia for sustainable economic growth. China and India are
growing economies and by 2030 these two giant economies would be almost double in size with
USA (p. 30). Such rapid economic growth has also developed apprehension about energy as their
industrial appetite for energy is increasing day by day. According to the statistics revealed by US
department of energy, the world energy consumption is estimated to grow by 2.6 percent per
annum from current level to 2030 while during the same period China and Indias energy
consumption would increase by 5 percent and 3.8 percent respectively (Aziz, 2005, p. 62).
According to the estimates of Bush Jason, (2005), until 2025 China will require 14.2 million
barrels of oil per day to meet its energy consumption of the industry whereas India will need 5
million barrels of oil per day to sustain its economic growth. In the natural gas import, Indias
utilization is estimated to grow up to almost 6.8 billion cubic feet a day for a period of ten years
and will reach sixfold after twenty years time which is equivalent to about 400 million cubic
meters a day (India in-Depth, 2006). As bilateral relations between Pakistan and India are back
to normalcy and improvement in different economic sectors has been made, India will still prove
to be the ultimate buyer of the Central Asian energy (Fredholm, 2008, p. 58).
Pakistan along with India is equally devoid of energy resources for industrial development.
These two countries account for half of South Asias GDP. In Pakistan, after hydropower,
natural gas is considered the second most important source of energy and means of
modernization (Fredholm, 2008, p. 58). Pakistans proven domestic natural gas and oil reserves
are shrinking to meet emerging energy demand of its industrial and other economic sectors.
Pakistans present 1 trillion cubic feet consumption per annum is increasing at a fast pace and if
Central Asian oil and gas reserves are not capitalized in the near future, the countrys industrial,
commercial, transport, household and other sectors of economy would go standstill (Wirsing,
2008, p. 9).
Abundant natural resources of Central Asia become important factor for South Asia which has
the scantiest endowment of hydrocarbons to fulfill their energy requirements. In this context,
Gwadar port can play a significant role as an energy corridor to link Central and South Asia into
economic integration to achieve a sustainable economic growth. Located just a few hundred
miles away, the energy corridor will connect the Central Asian states of Uzbekistan,
Turkmenistan and Afghanistan to exploit over 217 trillion cubic feet of gas reserves which are
more in quantum than Saudi Arabias resources (Aziz, 2005, p. 63). Moreover, South Asia can
enable Central Asian States to diversify their economies by supplying gas and oil on global
market prices as Russias Gasprom, oil and gas company, is exploiting the Central Asian
countries energy flow on a very minimal price. The Central Asia has old gas pipeline network
which known as the Central Asia-Center (CAC) gas pipeline system runs from Turkmenistan
through Uzbekistan and Kazakhstan to Russia. The CAC is a network of five separate pipelines
which are being used for transportation of energy from the Central Asia to Russia. These
pipelines were started constructing in 1966 and completed in 1987. Keeping in view the rich
energy resources of Central Asia, Russia has increased its transit capacity to retain energy from
the Central Asia (Fredholm, 2008, p. 42). The Russian monopoly and exploitation is because of
the fact that during former Soviets period, all supply routes of Central Asia were designed in
such a way to direct its energy resources only to Russia and left the region with no option but to
continue supplying Russian energy market. This approach of exploitation at the hands of Russia
has severely thwarted the regions economic development. The energy corridor will also
contribute for economic development of Afghanistan as the country is located in the middle of
two regions and can serve as a viable transit corridor for uninterrupted energy. It is a high time
for both the region to act as fueling prices are steadily going up since 2002 and delay may cause
a severe blow to regional prosperity and to both the economies of India and Pakistan whose
people are living below the poverty line

Port Development

Expansion

The flow of cargo to and from the port is hampered by severe congestion in the harbour with
several other maritime facilities located close to the port. Adjacent to the West Wharf is the
Karachi Fishing Harbour, which is administered separately from the port and is the base for a
fleet of several thousand fishing vessels. The West Wharf also hosts a ship repair facility and
shipyard and a naval dockyard at the tip of the wharf, while to the south of the port are the
Karachi Naval Base and the Kiamari Boat Club.
The Port of Karachi also faces competition from a new private terminal located 5 kilometres to
the west. In recent years the federal government has attempted to alleviate the increased
congestion by constructing a second port in Karachi thirty kilometres to the east at Port
Qasim and a third major port at Gwadar, about 650 kilometres west of Karachi.
The Karachi Fishing Harbour has been upgraded recently, and a second fishing harbour has been
built 18 kilometres away at Korangi. The transfer of some naval vessels to the new naval base at
Ormara has brought about further reductions in congestion.
Further deepening of the port has been planned by the Karachi Port Trust in order to enhance
facilities. The channel is being dredged initially to 13.5 metres deep to cater for 12-metre draught
vessels at all tides. At Kiamari Groyne, located at the outer tip of the harbour, dredging will be to
16.5 metres to enable vessels up to 300 metres long to dock. Other projects to expand the port
include:[7]

An increase the handling capacity of KICT from 300,000 TEUs to 400,000 TEUs per annum
Two new berths at KICT with 14 metres depth alongside and an additional 100,000 m
terminal/stacking area
Installation of modern facilities at PICT (completed in April 2004)
A new bulk cargo terminal at East Wharf
 Reconstruction of the oldest oil pier to allow tankers of 90,000 tonnes deadweight (DWT) to
berth
A new 100-acre (0.4 km2) cargo village to cater for containers and general and bulk cargo
Reconstruction of the 100-year old NMB Wharf to enhance the berthing of passenger vessels
The purchase of a new dredger, two hopper barges, two harbour tugs, two water barges, an
anchor hoist vessel, two pilot boats, and a dredger tender
A new desalination plant to address the city's water shortage problem
A 500-foot (150 m) high Port Tower for commercial and recreational use including
a revolving restaurant
The construction of a 500 acre (2 km) Port Town with 13,000 homes for port workers at
nearby Hawkes Bay
A new Port Club at Chinna Creek adjacent to the East Wharf
On 9 November 2007, the Karachi Port Trust signed a US$1 billion agreement with Hutchison
Port Holdings to construct a new terminal called the "Pakistan Deep Water Container Port",
which would begin operations by 2010, and would have ten berths capable of handling Super
Post Panamax container ships.

Development Plans

KPT aims at providing modern and user-friendly facilities to port users for import and export of
all types of cargo. Port development plans have conventionally been focused on national trade
requirements. However, swift changes in regional shipping trends and global economic
conditions call for a repositioning of Karachi Port services to respond to market demands and
adapt to the current scenario.
Accordingly, KPT visions to transform the port into a modern, competitive and user-friendly
port, which would also be a transshipment hub of the region. For realizing this vision Karachi
Port has embarked upon a comprehensive port modernization plan.
Deepening of channels to accommodate deep draft vessels at all tides is the first step
in this direction.
In Phase-I the navigable channel is being dredged to 13.5 meter depth whereas In
Phase-II this has been increased up to 16.5 meters.
Computerization of port operations and installation of electronic aids to monitor
port activity is aimed at bringing efficiency and agility to the system.
A new container terminal is also established in the private sector.
Deep draft berths at the mouth of harbor are also being planned to enable swift and
effective cargo handling.
Port tariff is under revision to enhance cost efficiency and competitiveness.

In expanding business the focus is to capture new markets and to look beyond the national trade,
seeking share in the burgeoning global volume of containerized trade and to develop
transshipment facilities accordingly.
A dedicated area has also been designated to provide 24-hour handling facilities. Other
concessions include :
 Free period of 30 days

Application of only one-way wharf age

Exemption from Dock Labor Chess etc

KPT is in the process of taking feedback from the port users to devise a set-up to facilitate
improved transshipment.

Private sector participation in Port operations is being encouraged. A dedicated container

terminal in the private sector is in operation, whereas another dedicated container terminal on
newly constructed berths with 13.5 meter draft will also established. Bulk and general cargo
terminals are also planned to be established by the private sector.

Karachi Port Trust

The Port of Karachi is Pakistan's largest and busiest seaport, handling about 60% of the nation's
cargo (25 million tons per annum). The port is located at 2450'00?N, 6658'30?E (24.840000,
66.980000) between the Karachi towns of Kemari and Saddar, close to the heart of old Karachi.
The port is located close to the main business district of Karachi and several industrial areas. The
geographic position of Karachi places the port in close proximity to major shipping routes such
as the Straits of Hormuz. The administration of the port is carried out by the Karachi Port Trust
which was established in the nineteenth century.

The port has thirty dry cargo berths, three liquid cargo-handling berths (oil piers), two ship repair
jetties and a shipyard and engineering facility. These are arranged in two main wharves - the
West Wharf and the East Wharf each including a container terminal.

The port comprises a deep natural harbor with an 11-km long approach channel which provides
safe navigation for vessels up to 75,000 DWT. The main areas of port activity are two wharves
East Wharf with seventeen vessel berths and West Wharf with thirteen vessel berths. The
maximum depth alongside the berths is currently 11.3 meters. The two wharves extend in
opposite directions along the upper harbor the West Wharf southwest from Saddar town and the
East Wharf northeast from Kiamari Island.

The flow of cargo to and from the port is hampered by severe congestion in the harbor with
several other maritime facilities located close to the port. Adjacent to the West Wharf is the
Karachi Fishing Harbor, which is administered separately from the port and is the base for a
large fleet of several thousand fishing vessels. The West Wharf also hosts a ship repair facility
and shipyard and a naval dockyard at the tip of the wharf, while to the south of the port are the
Karachi Naval Base and the Kiamari Boat Club. The Port of Karachi also faces competition from
a new private terminal located 5 kilometers away in the larger harbor west of the port. In recent
years the federal government has attempted to alleviate the increased congestion in the harbor by
constructing a second port in Karachi thirty kilometers east at Port Qasim and a third major port
at Gwadar about 650 kilometers west of Karachi. The Karachi Fishing Harbor has been upgraded
and a second fishing harbor is located 18 kilometers away at Korangi. The transfer of some naval
vessels to the new naval base at Ormara has brought about further reductions in congestion.

Karachi International Container Terminal (KICT)

Karachi International Container Terminal (KICT) opened in 1996 at West Wharf berths 28-30. It
has a handling capacity of 300,000 TEUs per annum and handles container ships up to 11-metre
draught. The total quay length is 600 meters. divided into two container berths. The terminal is
equipped with three Panamax cranes and one post-Panamax crane.KICT is Pakistan's leading
container-handling facility. It is located at the port of Karachi, a natural deep-water harbor on the
Pakistan coast of the Arabian Sea. KICT has been in operation since 1998.

More than 80 percent of Pakistan's International trade passes through Karachi, with a growing
proportion carried in containers. KICT is a member of the Hutchison Port Holdings (HPH)
Group, the world's leading port investor, developer and operator with interests in 18 countries
throughout Asia, Middle East, Africa, Europe and the Americas. Today HPH operates a total 214
berths in 36 ports together with a number of transport related service company.

Sources:

1. http://kpt.gov.pk/pages/Default.aspx?id=60&__ncforminfo=6SJUQqtKh8j1POw5V4hZU
kRKnvL6H5V0lEswXVuOMhirhF4iisYK-LxbaKdCqwwAhe5QEO2SEQM=#page-
heading
2. http://kpt.gov.pk/images/news Letter/19_7_11/Karachilargest.pdf
3. http://en.wikipedia.org/wiki/Port_of_Karachi