Islamabad:
Karachi Gateway Terminal Limited (KGTL) has planned an investment of $75 million in the multipurpose and net bulk terminal over the first two years to enhance the terminal’s capabilities.
The terminal operator aims to make the initial investment to cover advances, prepayments, superstructure and equipment costs.
Additionally, a capital injection of $100 million is planned over five years to further enhance the terminal’s capabilities, industry officials say. This major capital infusion is projected to increase throughput and capacity by 75%, enabling the terminal to handle up to 14 million tonnes of cargo per year, a significant improvement from its current capacity of eight million tonnes.
Additionally, an investment of $220 million has been earmarked for the container terminal over the first 10 years.
A key aspect of these investments is optimizing shipping cost savings. By focusing on faster terminal operations, the operator aims to shorten vessel handling time, thereby reducing decontamination charges. This requires an end-to-end operation at the terminal, spanning from the dock to the yard and through the exit gate for inland logistics. Improved security procedures and capacity have already been implemented, resulting in reduced cargo losses and an improved customer experience.
Industry officials said the efficient operational planning of KGTL’s cargo yard, which has designated truck storage, digitized truck entry and exit processes, truck marking for accurate load space allocation and installation of level bridges, has streamlined operations. The terminal can now berth seven bulk carriers simultaneously without traffic congestion. Previously, it could only accommodate up to three ships at a time, often resulting in significant traffic congestion at the yard.
Transparency in port operations for traders is a key aspect of competitiveness. Documenting financial transactions provides end-to-end transparency into the cost of operations for customs brokers, carriers and their customers. This visibility will help stakeholders optimize their shipment planning and reduce costs associated with unnecessarily long wait times and undocumented expenses.
Strategic investments in logistics infrastructure are set to transform the multipurpose terminal into a state-of-the-art handling facility, reducing operating costs and improving overall competitiveness.
Published in The Express Tribune, April 17u2024.
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