Pakistani, UAE officials perform groundbreaking of bulk and general cargo terminal in Karachi

The picture taken on April 22, 2024 shows Karachi port in Karachi, Pakistan. (AN photo)
Short Url
Updated 23 April 2024
Follow

Pakistani, UAE officials perform groundbreaking of bulk and general cargo terminal in Karachi

  • Pakistan’s maritime affairs minister says UAE’s investment an important “breakthrough” that has increased interest of other players
  • Multi-purpose terminal will handle grains, fertilizers and other kinds of export and import, says official of company operating terminal

KARACHI: Pakistani and United Arab Emirates (UAE) officials performed the groundbreaking of a $175 million Bulk and General Cargo terminal on Monday, describing it as an “important breakthrough” for the South Asian country in the maritime sector. 

Under a government-to-government (G2G) agreement between Pakistan and the UAE earlier this year, a new 25-year concession agreement was signed between AD Ports Group and Karachi Port Trust (KPT) in Feb. 2024 to outsource operations of the bulk and general cargo terminal.

Under the terms of the agreement, Karachi Gateway Terminal Multipurpose Limited (KGTML), a joint venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, will develop, operate and manage the Bulk and General Cargo Terminal, berths 11 to 17 at Karachi Port’s East Wharf. The move is expected to enhance Karachi’s position as a key player in the maritime industry.

Qaiser Ahmed Sheikh, Pakistan’s minister of maritime affairs, unveiled the KGTML plaque at Karachi Port on Monday, describing the UAE’s investment as a “very important breakthrough” which has increased the interest of other players in the maritime sector.

“This investment from Abu Dhabi Ports is very important for Pakistan, it is a breakthrough,” Sheikh told Arab News at the sidelines of the event. “It is the first investment in terminal and following this, there are many other companies who are also interested in Pakistan.”




Pakistan's Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, and officials of the UAE consulate perform the groundbreaking ceremony of the Bulk and General Cargo terminal in Karachi, Pakistan on April 22, 2024. (AN photo)

The minister shared that Maersk Line, the largest owner and operator of US flag vessels, has also expressed interest in investing in Pakistan.

“We are looking forward to investment from other companies like, you see, other shipping lines,” Sheikh said. “We are having a meeting (on Apr. 25) with Maersk Line and we are also expecting (investment).”

Khurram Aziz Khan, KGTL’s chief executive officer, said AD Ports plans to invest about $175 million for the bulk terminal’s development, adding that it would handle all kinds of bulk cargo.

“This is basically a multi-purpose terminal which will not only handle grains but also fertilizers and other kinds of export and import, dirty or clean cargo as well,” Khan told Arab News.

“We are making a long-term investment to make it a regional hub not only for containers but also for the multi-purpose facilities,” Khan explained, adding that the project, once completed, will also save the time and cost of doing business.




Pakistan's Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, and officials of the UAE consulate attend the groundbreaking ceremony of the Bulk and General Cargo terminal in Karachi, Pakistan on April 22, 2024. (AN photo)

He informed that AD Ports has an overall plan of investing about $395 million in the development of the container and cargo terminal.

“We have an overall plan of $220 million investment in the container terminal and $175 million of investment in the multi-purpose bulk terminal,” the KGTL chief said.

AD Ports Group also presented Sheikh a cheque for the upfront fee payment amounting to $50 million payable to KPT as per the terms outlined in the Agreement for Outsourcing of Operations of Bulk and General Cargo Terminal.

Abdul Aziz Baloshi, chief executive officer of Fujairah Terminals, AD Ports Group, said the group was expanding its operations in Pakistan.

“Progress will be made through investment in the supply chain,” Baloshi said at the event. “Karachi port is the future of Pakistan and Pakistan is included in our priority list in the region.”

UAE’s Consul General Bakheet Atiq Al-Remeithi said Emirati investors are interested in investing on a large scale in Pakistan. He said their areas of interest included ports and shipping, railways, and other infrastructure.

“Apart from port investments, investments will be made in railway infrastructure, export zones, and other sectors,” Al-Remeithi shared.

 The port operator hoped that the facilities will help Pakistan become the regional hub for handling export and import of cargoes from Central Asian countries.

The agreement for the construction of the Bulk and General Cargo terminal at the Karachi port was based on the concession agreement secured by AD Ports Group to develop, operate and manage container terminal at berths 6-10 at Karachi port’s East Wharf in June 2023.

AD Ports Group had signed a 50-year concession agreement with KPT to secure the terminal’s operations. 


Chinese official criticizes Pakistan’s ‘false rhetoric’ on economic corridor, raises ‘serious’ security concerns — report

Updated 27 January 2025
Follow

Chinese official criticizes Pakistan’s ‘false rhetoric’ on economic corridor, raises ‘serious’ security concerns — report

  • Shengjie says Pakistan’s rhetoric has given “unrealistic expectations” to locals
  • Recent attacks have forced Beijing to publicly criticize Pakistan over security lapses

ISLAMABAD: China’s political secretary to Islamabad, Wang Shengjie, has criticized Pakistan’s “false rhetoric” around projects that are part of a joint multi-billion-dollar economic corridor, expressing “serious concerns” over the scheme’s future due to security challenges, a recent report in the Guardian newspaper said.

Beijing has pledged to build energy, infrastructure and other projects as part of the over $60 billion China-Pakistan Economic Corridor (CPEC) scheme launched in 2015 as a flagship of President Xi Jinping’s Belt and Road Initiative to grant China access to trade routes in Asia and Africa. 

Recent attacks, including one in October 2024 in which two Chinese workers were killed in a suicide bombing in the Pakistani port city of Karachi, have forced Beijing to publicly criticize Pakistan over security lapses and media has widely reported in recent months that China wants its own security forces on the ground to protect its nationals and projects, a demand Islamabad has long resisted.

Progress on the economic corridor has been slow, particularly in the restive southwestern Balochistan province where China is building a deep-sea port and last week opened Pakistan’s largest airport in the coastal town of Gwadar, among other mega projects. Ethnic separatist groups target Chinese interests in the area, blaming both the governments in Pakistan and China of exploiting the province’s natural resources and neglecting the local population, allegations both Beijing and Islamabad deny. Gwadar residents have held intermittent protests for months, saying Chinese projects in the area have not improved the lives of the local population. 

In a report published in the Guardian on Sunday, Shengjie spoke about enduring security challenges in Pakistan. 

“Shengjie accused the Pakistani government of using ‘false rhetoric’ around CPEC projects, which had given unrealistic expectations to locals,” the Guardian reported on Sunday, 

 “We don’t work in rhetoric like Pakistan – we just focus on development,” he was quoted as saying. “If this kind of security situation persists, it will hamper development.”

The report said the Chinese official expressed “serious concerns” over the future of CPEC due to security challenges. 

“If the security is not improved, who would come and work in this environment? There is hatred against the Chinese in Gwadar and Balochistan,” Shengjie was quoted as saying . “Some evil forces are against the CPEC, and they want to sabotage it.”

Pakistan has repeatedly assured China it would protect its nationals in the country from militant outfits and has tightened security protocols for Chinese investors and nationals. Islamabad says attacks on Chinese nationals are an “international conspiracy” to sour ties between the two longtime allies. 


Pakistan condemns attack on Saudi Hospital in Sudan, killing at least 70

Updated 27 January 2025
Follow

Pakistan condemns attack on Saudi Hospital in Sudan, killing at least 70

  • War between Sudan’s army and Rapid Support Forces broke out in 2023 due to disputes over integration of two forces
  • Conflict has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger

ISLAMABAD: Pakistan on Monday condemned a drone attack that killed at least 70 people at the Saudi Teaching Maternal Hospital in the city of El-Fasher in Sudan, the foreign office said.

The war between Sudan’s army and the Rapid Support Forces (RSF), which broke out in April 2023 due to disputes over the integration of the two forces, has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger.

The conflict has produced waves of ethnically driven violence blamed largely on the RSF, creating a humanitarian crisis.

“The attack leading to unfortunate deaths reportedly of seventy people clearly violates international law and puts innocent civilians at grave risk. Pakistan extends its deepest sympathies to the victims and their families,” the foreign office said about the attack on the Saudi hospital.

“This attack underscores the urgent need for upholding the sanctity of health care facilities and adherence to the principles of international humanitarian law.”

The foreign office urged the resolution of the Sudanese conflict through dialogue and diplomacy, while affirming “full support for the unity, sovereignty and territorial integrity of Sudan.”

Darfur Governor Mini Minnawi said on X that an RSF drone had struck the emergency department of the Saudi hospital in the capital of North Darfur, killing patients, including women and children.

Fierce clashes have erupted in El Fasher between the RSF and the Sudanese joint forces, including the army, armed resistance groups, police, and local defense units.

Last week, the RSF issued an ultimatum demanding army forces and allies leave El Fasher city in advance of an expected offensive.


West Indies win Test in Pakistan for first time in 35 years

Updated 27 January 2025
Follow

West Indies win Test in Pakistan for first time in 35 years

  • Spinner Jomel Warrican took five wickets as West Indies beat Pakistan by 120 runs 
  • Babar Azam top-scores with 31, Rizwan makes 25 as Pakistan fail to chase 254 runs 

MULTAN, Pakistan: Spinner Jomel Warrican took five wickets as the West Indies won a Test match in Pakistan for the first time in nearly 35 years on Monday.
The West Indies won the second Test in Multan by 120 runs on day three to draw the series 1-1.
Pakistan won the first Test by 127 runs, also in Multan.
Warrican finished with nine wickets in the match — 19 in the series — to give the hosts a taste of their own medicine on spin-friendly pitches.
The last time the West Indies won a Test in Pakistan was in Faisalabad in November 1990, having gone winless on their 1997 and 2006 tours.
Resuming on 76-4 and chasing 254, Pakistan’s hopes of victory rested on Saud Shakeel but Kevin Sinclair had the left-hander caught in the slip for 13 to further dent the home team’s fading chances.
Babar Azam top-scored with 31 while Mohammad Rizwan made 25.


World Bank mission in Pakistan to discuss plan to improve power stability system

Updated 27 January 2025
Follow

World Bank mission in Pakistan to discuss plan to improve power stability system

  • World Bank mission to advance preparations for systems that manage, improve quality of power in electrical grids
  • Pakistan has taken steps recently to reform its energy sector, lower electricity costs and reduce transmission losses

ISLAMABAD: A World Bank mission is in Pakistan to discuss a plan to improve the power stability system in the energy-starved South Asian country, a spokesperson of the financial institution confirmed on Monday. 

As per local media reports, the World Bank mission was due to arrive in Pakistan on Monday for a two-day visit to develop a work plan and agree on the next steps to advance the preparation of Reactive Compensation Devices. 

Reactive Compensation Devices are electrical systems used to manage and improve the quality of power in electrical grids by controlling the flow of reactive power.

“There is a mission in town. That’s all I can confirm at this point,” Maryam Altaf, the communications officer at the World Bank’s Pakistan office, told Arab News when asked to confirm reports. 

Pakistan has been eagerly attempting to reform its energy sector, lower electricity costs and reduce transmission losses in its bid to curtail its mounting circular debt.

Prime Minister Shehbaz Sharif’s government has increasingly spoken about its desire to reduce electricity theft and transmission losses through energy sector reforms. This has resulted in the country suffering long hours of power outages, especially during summers, and suffering huge economic losses as a result. 

Earlier this month, the federal cabinet approved a plan to renegotiate agreements with 14 independent power producers (IPPs). The government said the revised agreements with the IPPs would cause a reduction of Rs802 billion ($2.9 billion) in costs and profits, including a Rs35 billion ($126 million) cut in past excess profits. 

At the core of Pakistan’s energy problems are capacity charges, or payments made to IPPs regardless of electricity consumption, which have exacerbated Pakistan’s circular debt, now exceeding Rs2.4 trillion ($8.6 billion), as per energy minister Sardar Awais Ahmad Laghari.

Laghari also announced earlier this month that the government will implement a new energy market system through which consumers will be able to buy power from multiple suppliers starting March. 


UK team in Pakistan for aviation audit ahead of resumption of PIA flights

Updated 27 January 2025
Follow

UK team in Pakistan for aviation audit ahead of resumption of PIA flights

  • European safety agency in November lifted 2020 bar on PIA operating in bloc
  • PIA resumed Europe operations on Jan. 10 with flight to Paris from Islamabad 

KARACHI: A delegation from the United Kingdom’s Department for Transport and Civil Aviation Authority arrived in Pakistan today, Monday, to conduct a safety assessment ahead of the resumption of PIA flight operations between Pakistan and the UK.

The European Union Aviation Safety Agency in November lifted its ban on Pakistan’s national carrier operating in the bloc, a restriction that was placed in 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards. The suspension came days after Pakistan launched an investigation into the validity of pilots’ licenses issued in the country following a PIA plane crash that killed 97 people.

On Jan. 10, PIA resumed flights to European destinations with a plane departing for Paris from Islamabad International Airport.

“There will be several high-level meetings between the two sides,” PCAA said in a statement after the UK team’s arrival in Pakistan.

“The discussions will examine aviation safety protocols, review documentation, and evaluate operational procedures. The UK delegation is also scheduled to visit airlines to assess compliance with international standards.”

PCAA said its officials had been engaged for months in technical talks with UK authorities and were “optimistic about the positive outcome of this visit.”

In November EASA said the decision to allow PIA to perform commercial air transport operations to, from and within the EU was based on the “significant efforts” made by the PCAA.

Pakistan had grounded 262 of the country’s 860 pilots, including 141 of PIA’s 434, whose licenses the then aviation minister termed “dubious.” The investigation ultimately did not reveal any major concerns, but the suspension remained in place.

The ban was costing PIA nearly 40 billion Pakistani rupees ($144 million) in revenue annually, according to government records presented in parliament.