Container terminal at Gwadar Port: PSA fails to start work on first phase

[LahoreEstate]

TAHIR AMIN
ISLAMABAD (September 29 2009): The Port Singapore Authority (PSA) has failed to start work on the first phase of container terminal at Gwadar Port as agreed in Gwadar Port Master Plan 2006. According to sources, as per agreed master plan, the PSA was to set up the container terminal with four berths of 300 metres each (total of 1.2 kilometres) and alignment of the quay-side, indicated in the drawings (zoning plan 2005, Gwadar Port Master Plan 2006).

"However, no activity has taken place so far," sources added. The sources revealed that operator of the Gwadar Port Authority (GPA) had invested 35 million dollars (Rs 2,905 million) to-date in upgradations, capital expenditure and maintenance of the port facilities, but due to unavailability of the port land, the planned investment in the free zone and its adjacent container terminal had been delayed.

The revenue earned during January-August 2009 from the shipping activities stands at Rs 218 million with GPA's share of Rs 19.6 million (nine percent) as agreed in the concession agreement. All the capital and operating expenses outlay have been borne by the operator.

The sources said that from January 1 to August 31, 2009, a total of 57 vessels called at the Gwadar Port, carrying 840,115 metric tonnes of urea; 896,002 metric tonnes of wheat; and 1,200 metric tonnes of dates and assorted vehicles. Currently one vessel is berthed at the port unloading urea. To-date, 25 ships carrying 900,000 tonnes of wheat and 32 ships of carrying 925,845 tonnes of urea have so far unloaded at the Gwadar Port.

"However, no ship of the Port Singapore Authority (PSA) has so far berthed at Gwadar Port due to inadequate road connectivity and non-availability of free zone land as promised in the agreement," said the sources. "By efficiently handling such a large quantity of these essential commodities in a such short time, Gwadar Port has proved that it can play an important and significant role in the national economy, especially in times of crisis, when timely arrival of fertiliser is critical," the sources added.

The sources further said that as compared to last season when heavy demurrages, amounting to nine million dollars were incurred on the vessels waiting at the outer anchorage to berth at Karachi/Qasim ports for discharge of wheat and urea, net dispatch earning had accrued due to quick availability of berthing at Gwadar port.

Unprecedented economic activity related to logistics, trucking, shipping agency, retail trade, hotel and restaurants, and workshops/fuel stations was witnessed in Gwadar city, giving hope to the people of Balochistan that they could also participate in the economic activities of the nation, the sources added.

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