PSA to build 14 berths

Karachi: The Gwadar Port will start its operation by March 23 this year, which would bring economic prosperity to the country, especially to Balochistan province. This was stated by Federal Minister for Ports and Shipping, Babar Khan Ghauri, in an emergency press conference here at Karachi Press Club on Saturday.

He said that President General Pervez Musharraf would inaugurate the operation of Gwadar Port, but the date has not yet been finalised. The port would contribute $40 billion towards national economy and would also generate employment opportunities, he added.

The negotiations with Gwadar port operator, Port of Singapore Authority (PSA), have almost been finalised and an agreement between the PSA and the Ministry of Ports and Shipping would be signed in Gwadar on February 6, in the presence of Prime Minister Shaukat Aziz, he said.

Under the agreement, the PSA would undertake construction of 14 more berths in an area of 4.5 sq km, beside the existing three berths. The PSA would invest $550 million in the next five years.

He said: 'All process of Gwadar Port was carried out in a transparent manner and interested parties from private sector were involved in all negotiations.' He said that only former Director General Shipping, Captain Anwar Shah, was from the government side in the entire process, and added that all prospective bidders attended the pre-bidding conference, including world-renowned port operating firms like Hutchinson, Globe Marine, etc.

He said that Gwadar would emerge as a hub for PSA and would be like Dubai port, which is a tax- and duty-free port. On the occasion, Arshad A Zuberi, Member, Board of Gwadar Port Implementation Authority (GPIA), who also negotiated with PSA from private sector side, said that best terms and conditions were negotiated with the PSA.

He said that corporate tax exemption was allowed for 20 years, and from the first day of operation, the government would get 9 percent share in income and revenue.

Three companies would work under one operator of Gwadar Port. One company would look after the port area and cargo operation; another one would handle marine affairs like pilotage etc; and the third company would operate 'Free Trade Zone' (FTZ) in which it would construct warehouses and other facilities, he added.

The government would get 15 percent of the revenue from FTZ company, where warehouses and other facilities would be constructed by PSA. Arshad Zuberi said that any dispute would be heard and decided by a court of Pakistan.

He said that the working of Karachi and Qasim ports would not be affected by the commencement of operations at Gwadar port as the latter has been designed to serve transhipment cargoes where mother-ships would unload their cargoes to be shipped to other ports by feeder vessels.

To a query that Balochistan government would lose revenue as local and municipal taxes were also revoked, he said that this decision of exemption was taken by the Balochistan government itself and announced by the Balochistan chief minister. 'The federal government has nothing to do with this decision,' Arshad Zuberi added.

Federal Secretary for Ports & Shipping, Miss Naheed Hyder, Director General Ports & Shipping, Rear Admiral Syed Afzal, a former Director General Ports & Shipping, Captain Anwar Shah, Arshad Zuberi, Mohammed Rajpur, Farooq Rematullah members of Gwadar Port Implementation Authority (GPIA) accompanied the minister on this occasion.

It may be mentioned that the country needed to develop third port, and even a fourth port, to cater future trade which is growing at over 10 percent per annum during last few years. The Karachi Port Trust (KPT) and Port Qasim Authority (PQA) are also expanding, but have limitation of draught (depth).

The port project comprises facilities to develop Gwadar as an industrial city and to provide facilities for private owned warehouses and cold storage, private cargo handling equipment, trucking yard