Terminal operator to invest $75m

In Business
April 17, 2024


Karachi Gateway Terminal Limited (KGTL) has planned an investment of $75 million in the multipurpose and clean bulk terminal in the initial two years to boost the terminal’s capabilities.

The terminal operator aims to make the initial investment to cover upfront fees, prepayments, the cost of superstructure and equipment.

Additionally, a capital injection of $100 million has been planned over five years to further bolster the terminal’s capabilities, industry officials say. This substantial infusion of funds is projected to increase efficiency and capacity by 75%, enabling the terminal to handle up to 14 million tonnes of cargo per annum, a significant enhancement from its current capacity of eight million tonnes.

Moreover, an investment of $220 million has been allocated for the container terminal for the first 10 years.

One pivotal aspect of these investments is the optimisation of savings on shipping costs. By focusing on faster terminal operations, the operator aims to shorten the turnaround time for ships, consequently mitigating demurrage charges. This necessitates integrated operation at the terminal, spanning from the quayside to the yard area and through the exit gate for inland logistics. Improved security procedures and capacity have already been implemented, resulting in reduced cargo losses and enhanced customer experience.

Industry officials said that the efficient operational design of KGTL’s cargo yard, featuring a designated truck holding area, digitised truck-in and truck-out processes, truck labeling for precise loading bay allocation, and the installation of weighbridges, has optimised operations. The terminal can now simultaneously berth seven bulk cargo ships without experiencing any traffic congestion. Previously, it could only accommodate up to three ships at a time, often resulting in significant traffic bottlenecks in the yard.

Transparency in port operations for traders is a key aspect of competitiveness. The documentation of financial transactions provides end-to-end transparency across the cost of operations for customs agents, freight forwarders and their clients. This visibility will assist stakeholders in optimising their shipment planning and reducing costs related to unnecessarily long wait times and undocumented expenses.

The strategic investments in logistics infrastructure are set to transform the multipurpose terminal into a state-of-the-art handling facility, reducing operational costs, and improving overall competitiveness.

Published in The Express Tribune, April 17th, 2024.

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