PSA takes-over Gwadar Port

Karachi: Port of Singapore Authority (PSA) will formally take over the assets and management of Gwadar Port on Wednesday to formally start its operation in the third week of March. In this regard, an eight-member team of PSA Gwadar Limited, led by Managing Director of Teh Lim Chai would arrived at Gwadar on Wednesday morning to take charge of the port premises, equipments and buildings.


Sources said that PSA Gwadar Limited would start port operations on March 20, after its formal operation commencement by President of Pakistan General Pervez Musharraf.


Sources said that the assets and equipments include two shore cranes of 40-ton capacity, one crane of 25-ton capacity, two cranes of 15-ton capacity, two Rubber Tyre Gantries (RTG), eight bagging plants, one reach stacker, two pilot boats, two tugs of 26 Bollard Pull Towage, one survey boat, one mooring boat and one working boat.


The other assets include desalination plant, control tower, office building, gatehouse, two multi-purpose berths of 602 metres length, 100 RoRo berth and 10 metres service berth and three mega watt generator with another backup generator of 450kv.


The PSA Gwadar has also ordered equipments for the handling of transshipment of containers, which would arrive at the port before August this year from Singapore. The equipment includes two Post Panamax Gantry Cranes of 45 tons capacity, four Rubber Tyre Gantries (RTGs), six tractor-trailers and one reach stacker, sources said, adding that the port equipment refurbishment is going on presently by specialised companies.


The dredging of Gwadar Port's 4.5 km approach channel has been completed in mid-February and the berth draught is 14.5 metres. The China Harbour has also deployed navigational buoys including fairway buoy. The Concession-Holder Company (CHC), PSA Gwadar Limited has been established and three separate operating companies formed which includes, PSA Gwadar Terminals Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited.


Sources said that the Gwadar port is ready to handle fertiliser and rice shipments for export, as proper bagging infrastructure is available at the proximity of the port. The Gwadar Port will contribute $42.2 billion, in terms of investment, revenues and income received from its entire operations to the exchequer, over a period of 40 years.


The concession agreement was inked on February 6 between the Gwadar Port Authority (GPA) representing Government of Pakistan, and the Concession-Holder Company (CHC), which is a subsidiary of PSA (Port of Singapore Authority) International PTE Limited.


The agreement has a duration of 40 years. Besides, it regulates the rights and obligations of both parties. The GPA will receive revenues (not profit) from the PSA over a period of 40 years. The investment, revenues and income received from Gwadar port's entire operations are between $23.6 billion to $42.2 billion.


Firstly, the GPA expects $5 billion to $8 billion foreign investment in the area of multi-purpose (MP) terminal and related equipment's to cost PSA at Gwadar Port which would be $1 billion to $1.5 billion; container terminal and others $2billion to $4 billion; the cost of Free Zone development $1.5 billion to 2.5 billion; while the marine services and others would cost $0.5 billion.


Secondly, the GPA is expected to receive between $17 billion and $31 billion revenues from CHC over next 40 years. The expected revenues, generated from containers and others, would be $10 billion to $18 billion. Free Zone will generate $3 billion to $6 billion; while the MP terminal and others would produce $4 billion to $8 billion revenues during the period.


Thirdly, the GPA would receive income from PSA over the period of four decades between $1.6 billion and $3.2 billion, in which the CHC of containers and others would give $0.9 billion to $1.6 billion (9 percent of CHC revenue); Free Zone $0.45 billion to $0.9 billion (