KGTL spearheading transformative dredging project at East Wharf

ISLAMABAD: Karachi Gateway Terminal Limited (KGTL), with full funding from AD Ports Group, is spearheading a transformative dredging project at Karachi Port’s East Wharf to increase efficiency of import and export operations and attract transshipment volume.

Documents available with Business Recorder revealed that the initiative marks a significant milestone in Pakistan’s maritime industry by deepening the channel and berths to 15.5 meters, allowing KGTL to accommodate larger vessels of up to 350 meters in length and over 13,000 TEUs. The dredging project underscores Pakistan’s commitment to enhancing its trade infrastructure, fostering economic growth, and improving global connectivity.

A critical breakthrough in this project was the issuance of a No Objection Certificate (NOC) by Karachi Port Trust (KPT), giving KGTL the green light to commence dredging and all its other expansion projects in the pipeline. With a total investment of USD 285 million allocated between the container and bulk terminals, this project aims to elevate Karachi Port’s status as a competitive maritime hub in South Asia.

Currently, the bulk terminal, KGTML, is equipped to handle vessels up to 60,000 tonnes and with plans underway to commence a comprehensive dredging project, the bulk terminal is poised to accommodate larger vessels up to 120,000 tonnes, which will catalyze significant freight costs reductions for trade through economies of scale.

In addition to the dredging project, strategic expansion projects in logistics infrastructure are set to revolutionize the bulk handling in Pakistan. These enhancements will transform KGTML into a state-of-the-art handling facility, aligning with international best practices, serving as the backbone for facilitating smoother trade flows, reducing operational costs, and improving overall competitiveness.

Data further revealed that a pivotal benefit of this transformation and planned infrastructural upgrades is the substantial reduction in vessel turnaround times for a 60,000-tonne grain vessel, decreasing from the current 12 days to just 3 days.

Collectively, these enhancements at the bulk terminal are projected to yield annual freight cost savings of approximately USD 175 million for trade. A critical aspect of the bulk terminal’s upgrades is the strategic optimization of freight costs for key exports, including cement, clinker, and rice. This will significantly improve their competitiveness on the international stage, potentially leading to an increase in exports from Pakistan.

With improved port infrastructure, Pakistani manufacturers and exporters will experience increased global reach, particularly in markets where competitive pricing is key. Additionally, reduced shipping costs will encourage more foreign investments, reinforcing Pakistan’s status as an emerging trade powerhouse in the region.

AD Ports Group’s commitment to fully funding this project highlights international confidence in Pakistan’s economic potential. This collaboration also strengthens economic ties between Pakistan and the UAE, demonstrating a strategic partnership in regional trade development.

Once completed, the dredging project along with other critical expansions at KGTL, will serve as a landmark achievement for Pakistan’s maritime industry, it added.

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