Karachi Port Trust (KPT) has sought approval from the Ministry of Ports and Shipping to form a subsidiary organisation, ''National Dredging Company'', to cater to the increasing demand of capital and maintenance dredging for country''s own and regional ports.
Sources told Business Recorder on Wednesday that KPT was aiming to play a major role in regional dredging business. The dredging company would also look after the needs of capital and maintenance dredging, on regular basis, for Port Qasim Authority (PQA), Karachi Port Trust (KPT), Jinnah Naval Base (JNB) at Ormara, Gwadar Port Authority (GPA) and the new ports to be constructed at Sonmiani and Keti Bandar.
During conceptual stage, sources said, the NDC would play an active regional role for maintenance and capital dredging, while afterwards it would enter into joint venture with some leading foreign dredging firm. That might take two to three years after the formal launch of the company, they added.
"Entry into joint venture with any leading foreign firm requires excellent track record. NDC would take at least three years to establish, and operate, on high standards, with quality human resource," sources said. The KPT has finalised all formalities for setting up NDC and is waiting for the Ministry''s green signal.
The concept behind the formation of NDC is to save huge amount of money that is being spent on dredging these ports--except the KPT which owns all equipment for this purpose--every year through foreign contracting companies.
There are backlogs every year, on one count or the other, due to delays in concluding contracts or inadequate efforts and funds. For the first time, the KPT has planned to form a subsidiary for maintaining declared drafts (depth) of all existing ports. This would also help new port sites that the Ministry of Ports and Shipping is looking for.
Regular and efficient dredging is essential for ports to maintain declared draft (depth) and even to increase it in harbour channels and alongside berths to provide safe passage and berthing of large vessels, which is at present part of modern port sector competition.
The KPT is maintaining a fleet of dredging equipment, and additional equipment required to meet total dredging need of all four ports was also assessed. All ports need regular dredging, At present, dredging is being planned and executed by each port individually. KPT uses own dredging fleet while the PQA invites foreign dredging companies to maintain its draft.
Dredging causes colossal cost to the country to avoid damaging results like reduction in channel draft restricting movement of ships. Ports like Dubai, Singapore, Hong Kong, Manila etc have taken lead and have become hub for container transportation due to timely decision to modernise the ports.
According to the plan, NDC would work as an independent strategic business unit (SBU), generating own revenues to sustain efficient and profitable operation. This would also include self-directive management, financial autonomy, and satisfaction of clients with outstanding performance, optimum utilisation of machines, personnel and time expanding market by building up reputation for efficiency, total elimination of bureaucratic culture.
On the operational side, the company would have to induct dredging equipment on merchant navy pattern, signing on crew for 24 hours working, relieving one-third crew every three months, selection of personnel strictly on pure merit, attractive salaries, efficiency bonus and allowances, incorporation of high standard maintenance programme for preventive maintenance to keep the equipment in top condition keeping cost as secondary consideration etc.