Pak Gov rejects PQA proposal to deepen port

Karachi: Pakistan Government is believed to have rejected a proposal submitted by the Port Qasim Authority (PQA), seeking deepening and widening of navigation channel from 11 metres to 14 meters at an estimated cost of $140 million.

The PQA team appears to have failed to present its case before the meeting of Central Development Working Party (CDWP) last week, properly. Wherein, queries were raised to justify the huge expenditure.

The PQA has received two bids for dredging of around 10 million cubic metres required for widening and deepening of navigation channel.

According to a Pak daily, China Harbour and Dredging International have submitted bids of Rs. 10.1 billion and Rs. 10.7 billion, respectively, for the job.

In case the PQA fails to meet the contractual obligation of widening and deepening of the channel to 14 metres with Qasim International Container Terminal (QICT) and DP World, terminal operator, the former would have to pay a penalty of $2 per box to the latter.

In order to meet the economy of scales, it is essential that the approach channel of the PQA be deepened and widened so that large vessels could enter the port.

The QICT had been demanding deepening of the channel so that container vessels with 6,000 TEUs could be called at the port.

In case the PQA fails to deepen the depth of the channel, ports and shipping experts fear that many mega projects in the pipeline, such as LNG (Liquid Natural Gas) terminal and second container terminal at a cost of $200 million, being taken up on build, operate and transfer (BOT) basis, may have to be shelved.

These experts suggested that the Ministry of Ports and Shipping should reconstitute a committee of experts which could better put up the case of national importance before the CDWP and remove their apprehensions.

For the last four months, the port is being run without board. Last week, the government had announced its new board which was not allowed to hold its first meeting on reports that some changes are being made in its formation.