Karachi's New Port Terminal Wins "Container Terminal of the Year" Award

Karachi's SAPT (South Asia Port Terminal) Automatic Container Yard and Housing Project is one of 18 winners of "Year in Infrastructure 2019" awards announced by Bentley Systems.

South Asia Port Terminal, Karachi, Pakistan

The annual awards highlight the work of Bentley software users advancing infrastructure design, construction, and operations throughout the world. 12 independent jury panels of distinguished industry experts selected  the 54 finalists from 571 nominations submitted by more than 440 organizations in more than 60 countries.

Hutchison Ports Pakistan is the country’s first deep-water container terminal, designed to accommodate super post Panamax ships, the largest container ships operating today. It is situated at the Keamari Groyne basin and provides the most convenient access to large vessels entering Karachi.

The new container port recently notched up a new productivity high — claimed to be the best-ever at a Pakistani port — when it handled the 8,562-TEU Hyundai Courage. The terminal handled 2,683 moves in about 13 hours, with berth productivity reaching 203.4 moves per hour and gross crane rates averaging 32.3 moves per hour. While in berth, the vessel loaded and discharged 3,501 TEU. That productivity beats the previous high of 1,953 moves in 11 hours, which the terminal achieved on the Hyundai Global, the company told JOC.com.

The US$1.4 billion container terminal operates as a partnership between Hutchison Ports Pakistan, a member of the Hutchison Ports network, and Karachi Port Trust. Hutchison Ports has invested US$600 million to develop the terminal and install the latest technology, whereas Karachi Port Trust has invested over US$350 million on reclamation work and dredging.

Hutchison Ports Pakistan also works with Pakistan Customs to improve clearance systems and procedures and enable easier and faster cargo clearance for end users. With this high-tech, deep-water facility at Karachi Port, Pakistan has the basis to compete with global peers as a modern trading economy.

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Riaz Haq said…
Hutchison Ports to invest additional #240 million despite #Pakistan’s slowing #economy. The company has made no change in its #investment plan for expansion of container #terminal at #Karachi port to increase its capacity up to 3.2 million TEUs by 2022. https://tribune.com.pk/story/2105387/2-hutchison-ports-invests-despite-pakistans-slowing-economy/


Talking about the progress on phase-II of the Hutchison Ports’ terminal with an additional investment of $240 million, he said it would help expand the installed capacity for handling containerised cargo at the terminal located at the Karachi Port. “With this, the total investment in the terminal by Hutchison Ports Pakistan will increase to over $600 million,” he said.

In a bid to improve the deteriorating macroeconomic indicators, the federal government took measures to narrow the twin deficits in first quarter of the current fiscal year 2019-20.

“Declining imports are favourable for the economy, but ports and terminal operators are losing revenue and import cargoes are going down,” said Rashid. “This is even more challenging for us as we have no sovereign guarantee for payments.”

However, he said despite the tough times, Karachi Port had the potential of becoming the transit and transhipment hub in the near future.

“We are very optimistic about the economy of Pakistan and despite the hard times due to decreasing imports, our investment plan in phase-II is very much on track.

“Our total investment in Pakistan will touch $1 billion by the end of this investment cycle,” he added.

He pointed out that civil work in the second phase was ahead of schedule and would be completed in 2021, while additional equipment would be installed by 2022.

“It will be a state-of-the-art terminal, which will use remote-controlled ship-to-shore cranes and semi-automated yard cranes, which were first introduced in the country by Hutchison Ports Pakistan.”

Hutchison Ports is also planning to invest in logistics services both upstream and downstream and for this it is in talks with Pakistan Railways.

The development of phase-II includes three internal railway tracks, which will connect the terminal to the main lines. Movement of cargo through rail will be a public-private partnership with Pakistan Railways.

“We have chalked out our strategy in view of the economic slowdown, as at the time of the decision on raising investment in the terminal, the present situation of economic slowdown was not expected,” Jamil said.

He said cargo volumes at terminals had been constantly declining for the last two years and imports of consumer goods had gone down. Balancing, modernisation and replacement activities in the industries are also slowing down and no major plant and machinery are being imported.

“On the other hand, exports are increasing and imports of industrial raw material have also gone up. We will manage this situation by rescheduling of delay in equipment purchase as this will help us get the latest equipment and technology.”

Pakistan’s first deep-water container terminal is capable of handling the world’s largest vessels. Currently, it has the capacity of handing 1.5 million TEUs annually. The terminal was utilising 50% capacity about a few weeks ago, but currently it is operating at 64% capacity utilisation.

“The terminal was at its peak at 100% capacity utilisation in January 2019 due to a push in CPEC-related consignments.” The terminal operator is looking for a partnership with a consolidated big shipping line. It would most probably be an eastern shipping line to achieve economies of scale and utilise its enhanced capacity after the completion of phase-II.

Compared to other terminals, Hutchison Ports Pakistan is paying almost double charges to the land authority in the form of royalty, which makes it expensive for its customers.

Increasing efficiency is the only way to minimise the cost for which Hutchison Ports is investing in technologies and human resources.
Riaz Haq said…
Cargo handling operations remained active at Karachi port and Port Qasim during the outgoing week.

https://www.hellenicshippingnews.com/karachi-port-handles-894017-tonnes-of-cargo/

A total volume of 894,017 tonnes was handled at the Karachi port in which the share of imports and exports were 676,689 tonnes and 217,319 tonnes respectively.

In the import category, the share of oil and liquid cargo and containerised cargo stood at 298,082 tonnes and 251,340 tonnes followed by 21,066 tonnes of bulk cargo, 36,404 tonnes of soyabean seeds, 45,444 tonnes of wheat, 23,576 tonnes of iron and steel scrap and 786 cattle.

Export cargo handling at the Karachi port stood at 146,845 tonnes of containerised cargo followed by 1,069 tonnes of bulk cargo, 21,250 tonnes of cement, 29,000 tonnes of clinkers, 17,155 tonnes of iron ore and 2,000 tonnes of oil and liquid cargo.Around 35 ships took berth and 27 ships sailed out during the last week.

At Port Qasim, a total cargo volume of 862,621 tonnes were handled comprising 632,814 tonnes of import and 229,843 tonnes of export during the last week.

Imported cargo comprised of steel coil, coal, palm oil, motor gasoline, LNG, wheat, chemical, project cargo and containerised cargo. Goods exported included cement and containerised cargo.
Riaz Haq said…
#Freight #train service launched to link #Karachi container terminal with rest of #Pakistan. A 3.7km, high-tech train track laid at the Hutchison Ports Pakistan connecting the facility to the rest of the country. #Railway - DAWN.COM
https://www.dawn.com/news/1671360


Several terminals for freight service planned: Swati
• Says Railways will become profitable within six months

KARACHI: The huge and powerful dark green locomotive attached to a long line of big and small freight containers awaited the inauguration ceremony to be off on its way at the Hutchison Ports Pakistan, also known as the South Asia Pakistan Terminal, on Monday.

Then as soon as the ribbon was cut, it honked loudly while making the slouching guests sit up straight in their chairs as it chugged away on its new ballastless tracks. Expected to take away the traffic congestion caused by container trucks on roads and highways here, this freight train will reach its destination, Lahore, in up to four days.

The freight train service also coincides with the commissioning of a 3.7km, high-tech train track laid at the Hutchison Ports Pakistan connecting the facility to the rest of the country in a seamless manner through Pakistan Railway’s extensive network spread throughout the country.


This new track laid within the terminal comprised three rail sidings of 700 metres each alongside a crippled wagon sliding. The tracks are embedded in concrete and are ballastless, which is a better, albeit a more expensive option than the traditional sleeper/ballast design used in Pakistan. Switching between the tracks and signalling is carried out using a computer-based interlocking system, eliminating the need for manual switching. As many as three freight trains can be handled simultaneously using rubber-tyred gantry cranes with a quick turnaround. Another track can also be added.

Captain Syed Rashid Jamil, general manager and head of business unit at Hutchison Ports Pakistan, said that with the commencement of the freight train service, they were expanding their contribution towards Pakistan’s trade. “We are extending our physical gates to somewhere in Multan, Sialkot and Lahore as the containers will be discharged from the ships and put on a train that will deliver them to the customers at their factory gates,” he said.

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“Karachi needs to be an international standard business hub. Pakistan’s entire business, its industry, its trade all come from here. It only needs good governance to transform this city and this country,” he said.

The federal minister announced they needed to work at connecting Port Qasim Authority with this freight train service too. “We should also be transporting coal and oil via railway,” he said.

Sindh Governor Imran Ismail said port cities across the world were responsible for their country’s prosperity and Karachi was a port city.

Earlier, Pakistan had its flag-carrier PIA, Railways and Pakistan Steel Mills to be proud of, the governor said, “but now PIA is running losses, the Pakistan Railways is running losses and the Steel Mills happen to be a burden on the exchequer. It is so because our country fell in the wrong hands”.

“But now we have people like Railways Minister Swati and Minister for Maritime Affairs like Ali Zaidi, who are powerful pillars. They are doers. [PM] Imran Khan has chosen the best people in his cabinet. We were labelled as incompetent in our first year of governance but we kept working with the uplift of economy as our main focus despite the Covid-19 pandemic and now Imran Khan is the first prime minister in years to have completed the longest term in office,” he said.

PSO, Railways ink MoU
In a related development, Pakistan State Oil (PSO) signed a Memorandum of Understanding (MoU) with Pakistan Railways for the supply of POL products, transportation and other businesses.
Riaz Haq said…
AD Ports Group inks MoU to develop Karachi Port

https://www.seatrade-maritime.com/ports/ad-ports-group-inks-mou-develop-karachi-port


Abu Dhabi’s AD Ports Group has reached an agreement with Pakistan to develop and enhance port projects in the country, after a senior UAE delegation visited Karachi.
Peter Shaw-Smith | May 19, 2023


“The UAE aims to foster economic growth in Pakistan by signing an MoU with the Karachi Port Trust (KPT),” AD Ports Group said. “The MoU paves the way for enhancing bilateral cooperation and increasing efforts in the development, expansion, and digitalisation of port projects within Pakistan.”

AD Ports Group said the collaboration encompasses a wide range of initiatives and projects aimed at enhancing port infrastructure, optimising operational efficiencies, and embracing digitalisation. The group will leverage its technical expertise to conduct feasibility studies and analysis, to ensure commercial success of the project.

Related: AD Ports Group expands dry bulk fleet, moves into tankers

“We aim to leverage our group’s extensive experience and capabilities to transform Karachi Port’s Container Terminal into a premier hub for transshipment as well as imported and exported cargo,” said Captain Mohamed Juma Al Shamisi, CEO and Managing Director of AD Ports Group.

“In line with [the UAE’s] economic diversification, we anticipate that this collaboration will propel Karachi Port towards becoming a global hub of global trade and reinforce its significance as a key player in the trade and maritime industries, further stimulating economic prosperity in the region.”


"This partnership with AD Ports Group is a significant milestone for Karachi Port Trust. By combining our strengths and expertise, we are poised to unlock unprecedented growth opportunities for our port and the wider trade community,” said Syed Syedain Raza Zaidi, Chairman Karachi Port Trust.


“Together, we will work towards transforming Karachi Port into a world-class maritime hub that can effectively meet the demands of the evolving global trade landscape."

AD Ports Group’s move into Pakistan is not the UAE’s first foray into Pakistan. DP World has been operating Qasim International Container Terminal (QICT) for several years.

“The Muhammad Bin Qasim Port Project is the one of the largest port privatisation projects in Pakistan and is a testament to the Government’s commitment to providing the international trade community with a world class port facility supported by the latest technologies and second to none efficiency,” it said.

Qasim International Container Terminal started operations in 1997. “Today the capacity of Terminal 1 and Terminal 2 is 1.38m teu. Over the last 25 years of operations the terminal has grown and now handles more than 650 vessels annually,” DP World said.

Hutchison Ports also operates in the Port of Karachi.
Riaz Haq said…
Danish shipping giant Maersk has announced a significant $2 billion investment in Pakistan’s port and transport infrastructure over the next two years. This investment aims to contribute to the country’s infrastructure development and drive economic growth, according to a state-owned news agency.

https://www.globaltrademag.com/maersk-commits-2-billion-to-boost-pakistans-port-and-transport-infrastructure/

As part of this initiative, Pakistan’s Minister for Maritime Affairs, Qaiser Ahmed Sheikh, is scheduled to visit Denmark this month to sign a Memorandum of Understanding (MoU) between Maersk Shipping Company and Karachi Port Trust.

This announcement follows the recent commitment by Abu Dhabi Ports Pakistan CEO, Khurram Aziz Khan, who unveiled a $250 million investment in Karachi Port over the next decade during a meeting with Prime Minister Shehbaz Sharif. Khan also outlined plans for a $130 million investment in a state-of-the-art multipurpose terminal, expected to be completed within two years. Enhancements to the container terminal facility at Karachi Port will include automated gates, an expanded berth, a crane rail track, and additional infrastructure upgrades.
Riaz Haq said…
DP World exploring investment opportunities - Business Recorder

https://www.brecorder.com/news/40329505

One of the key areas of interest for DP World is the development of a corridor between Karachi Port and Pipri, a project that could enhance connectivity and bolster Pakistan’s trade infrastructure.

During the visit, DP World officials expressed their appreciation for SIFC’s efforts to facilitate investments and conveyed their trust in Pakistan’s economic landscape.

Reaffirming their commitment, DP World highlighted its plans to pursue joint ventures within Pakistan’s logistics sector, seeking to uncover new avenues for collaboration and contribute to the country’s economic growth.

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https://www.seatrade-maritime.com/ports-logistics/dubai-and-pakistan-sign-port-qasim-framework-agreements

The agreements span the creation of a dedicated freight corridor between Karachi Port to the Pipri Marshalling Yard 45 km away, capital dredging of the navigation channel to Port Qasim and the potential development of an economic zone at Port Qasim to attract foreign direct investment.

In executing the projects, DP World will act on behalf of the Dubai Government, and state-run Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan Government.

DP World chairman and CEO Sultan Ahmed bin Sulayem, said: “Pakistan is a growing market, and an important trade corridor to Central Asia. We are proud to have contributed to its trading ability through our operations at Qasim International Container Terminal and are honoured to work with various Pakistani government organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment.”
Riaz Haq said…
The tetrapod rocks are a prominent feature of China Port in Karachi, Pakistan, and are laid across the breakwater's entire length.
China Port also offers views of: Natural islands, Rocky formations, Cranes at the South Asia Pakistan Terminal (SAPT), and Container ships entering and leaving the port.

https://youtu.be/bOcvJaXELe8?si=o7cz1VM7mIN27goq

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