Karachi Port Trust (KPT) has shelved the plan for setting up the country's first dedicated Container Freight Station (CFS) in the proximity of Thole Produce Yard (TPX). The project had been awarded to private sector at a cost of about Rs 640 million.
Sources told Business Recorder that the project had been shelved keeping in view the increasing traffic congestion at the site of CFS in TPX area.
"After the construction of container freight station, the heavy traffic would increase immensely. That is why we have planned a project 'Cargo Village' which would serve the purpose of all such import and export related cargoes shipped through Karachi port," source said, adding that exports would also be shifted to 'cargo village' for this purpose.
The KPT had awarded the contract for CFS in TPX area to Karachi International Container Terminal (KICT) and Modern Terminal Operator who were the highest bidders for this tender.
In this connection, the two companies had formed a new company named 'Container Freight Station Private Limited', which was assigned to operate the CFS.
The CFS had to be built on 'Build, Operate and Transfer' (BOT) basis to handle 100,000 TEUs annually.
The successful bidders had offered to pay Rs 248 per TEU as royalty, which could generate an income of Rs 27 million per annum in first year of its operation. During the 20th year of CFS operation the KPT could earn Rs 120 million per annum from this project.
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