Karachi Port: Railway track missing in port terminal revamp

The Karachi Port Trust (KPT) had entered into a concession agreement with Abu Dhabi Ports Group (ADPG) of the UAE government to operate the Karachi Gateway Terminal Limited (KGTL). Under the pact, the terminal underwent modernisation at a cost of $220 million, with an additional investment of $1.8 billion over the next 10 years.

The capacity of the terminal has been increased, and the depth of the berths expanded to accommodate post-panamax vessels carrying 8,500 containers. The new terminal will handle thousands of containers but without railway tracks.

The sources said the Pakistan Railways was not taken on board while signing the agreement for the new terminal.

They added that there would be an investment of $1.8 billion, but not even a penny had been allocated for a railway track.

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They sources pointed out that railway tracks were also built along the ports all over the world including India. They continued that a railway track would have benefitted the country’s exporters and importers as their goods would reach their destinations on time.

The agreement with the KPT was part of the ADPG’s investment strategy to expand its maritime presence and establish long-term development potential in the region.

The ADPG in a press statement said that under the terms of the 50-year concession agreement, a joint venture between Abu Dhabi Ports, as a majority shareholder, and Kaheel Terminals, a UAE-based company, had been formed to manage, operate and develop the KGTL, berths 6-9 at Karachi Port’s East Wharf.