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  • Feb 23rd, 2005
  • Comments Off on PQA starts talks to build new container terminal, iron ore berth
Port Qasim Authority (PQA) has started negotiations for construction of a second container terminal and an iron ore and coal berth (IOCB) at the port, Planning and Development (P&D) sources said here on Tuesday. The Qasim International Container Terminal (QICT) and Pakistan Steel have indicated their interest in financing these projects of their interest. Sources said that negotiations had been started with Pakistan Steel, which operates the existing IOCB, about the details of the project, including handling capacity and mode of financing.

At present, Pakistan Steel is producing 1.1 million tons steel products, and has planned expansion to raise its production from three million tons to 4.5 million tons per annum.

The handling capacity of second IOCB and other details of the project and financial model, including the subsidised tariff against the investment would be chalked out after Pakistan Steel provides details of its expansion.

The PQA would appoint consultants for technical evaluation of the project to ensure its feasibility.

Sources said that if the project, designed by Pakistan Steel, was not approved by PQA, a technical committee would invite offers from private sector for construction of the berth.

They said that QICT had been given the right of first refusal for the project for the construction of a second container terminal at the port.

The second two-berth terminal would be constructed beside the existing terminal.

A committee has been formed to start negotiations with QICT on feasibility of the project.

The project would be technically evaluated by PQA and if the board of directors did not approve the project it would be advertised for inviting investors from private sector.

The second-generation IOCB and container terminal projects would help meet the increased handling of containers and iron ore and coal imports at the port.

Copyright Business Recorder, 2005


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