Port Qasim seeks soft loan to deepen channel, develop infrastructure

Karachi: The Port Qasim Authority (PQA) for the first time has planned to start capital dredging for deepening of its 45 km long navigational channel to take 17.5 metres draught. The Rs 5.3 billion plan would provide all-weather draught and help the port to accommodate large vessels of 75,000 dead weight tonnage (DWT).

PQA Chairman Vice Admiral Asad Qureshi said here on Wednesday after meeting with a Japanese delegation the port Authority had sought financial assistance on soft terms basis with any international financial institution (IFI). The plan would provide large ships an all-weather draught

'We are going to transform the port into a regional competitive port, equipped with modern facilities for its users,' he said.

He said, 'An increase of one metre in the draught would reduce freight by at least two dollars per ton of cargo besides enabling the country to benefit from the economies of scale. This would make the port very cheap in the region, he added.

The Japanese delegation comprised marine experts of ITOCHU, led by Kenji Fujisawa, General Manager Project Promotion Department and Business Development, Department International Division. It was briefed by port officials regarding the capital dredging plan.

The delegation would help the PQA in negotiating a loan of about $200 million from Japan Bank for International Co-operation (JBIC).

After formal approval of the loan from JBIC, an amount of $100 million would be spent on acquiring floating crafts for dredging, including one dredger and five other ancillary crafts. Rest of $100 million would be spent on dredging operation.

According to the plan, a mass of 20 million cubic metres would be remove from the navigational channel, and the Authority is ready to share 25 percent cost. The estimated time frame for the plan is two-and-a-half years.