KARACHI: The Karachi Port Trust (KPT) was permitted by the Cabinet Committee on Intergovernmental Commercial Transactions (CCoIGCT) to take over the management of the Container Terminal (Berths 6 to 9 at East Wharf) when the current concessionaire, Pakistan International Container Terminal (PICT),’s 21-year contract expires on June 17.
A presentation on the topic was presented at the committee meeting that Finance Minister Ishaq Dar was in charge of. The conference was informed that KPT had a 21-year Build, Operate, and Transfer (BOT) contract with the PICT over the management of the Container Terminal in 2002, but the concessionaire was hesitant to leave the facility because it was overextending its position and contract conditions.
However, the parent ministry of the KPT, the Ministry of Maritime Affairs (MOMA), had instructed the port trust to take over the facility as soon as the contract expired based on resolutions and decisions made by the KPT board of directors.
According to a formal statement, “The committee endorsed the decision of the ministry that after the expiry of the agreement with PICT on June 17, 2023, KPT will take over the charge of operating the activities of the Container Terminal.”
According to reports, Abu Dhabi Ports and other port operators had expressed interest in acquiring the facility through competitive bidding, improving its facilities, and operating it. The current operator, however, wished to proceed by using the option to match the highest offer.
The current concessionaire filed a claim with the Sindh High Court to continue operating even until June 17; however, the court rejected the concessionaire’s application in March. An internal appeal had been made by the party involved.
The KPT was instructed by the CCoIGCT to take control of the facility, pursue the issue with the government for a speedy resolution, and choose any other operators through a competitive bidding process.
According to the court file, the Philippine-based International Container Terminal Services Inc (ICTSI) provided security for PICT’s majority holdings. The KPT had opted to arrange competitive bidding for future operations and to terminate the current contract at its expiration last year.
To continue operating Births 6 to 9, PICT requested that the KPT decision be set aside. PICT also argued that the contract should have been extended because it was not provided a year’s notice of contract termination.
