Gwadar Port Phase II

active

In February 2007, PSA Corp signed a concession contract with the Gwadar Port Authority to operate and expand Gwadar Port for 40 years. Gwadar Port Phase I included the construction of a multipurpose terminal and involved heavy investment from China under an EPC contract. Upon completion in the second quarter of 2007, PSA Corp was to take over operations of the existing multi-purpose terminal, and build a new container terminal during Phase II. A call for tenders was issued in September 2006. Proposals were received in December and competitive negotiation soon followed. Dubai’s DP World was originally stated as the preferred bidder, but backed out of the competition later. There were four original bidders: PSA International, Singapore; Globe Marine Service Co, Saudi Arabia; Pembianaan Redzai Sdn Bhd, Malaysia; and Pakistan International Container Terminal (PICT). Only PSA International and PICT stayed in the competition through 2006. PSA International was announced as the preferred bidder in December 2006 and signed its contract in February 2007. PSA International was a subsidiary of PSA Corp [Singapore]. Phase II of the terminal was designed with a capacity of 500,000 TEU and had an estimated cost of US $550 million. The project was expected to grow with demand and revenue was to be paid to the Gwadar Port Authority for each container handled. Construction was expected to be complete by 2010.