Second Container Terminal at Port Mohammad Qasim

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On Aug. 17, 2006, Port Qasim Authority signed an agreement with UAE’s DP World for the development of a new container terminal at Port Muhammad Qasim near Karachi on a build-operate-transfer (BOT) basis with a term of 21 years. The new terminal, designed to have a handling capacity of 1.175 million TEUs, was to be developed in three phases. QICT is owned 75% by DP World Ltd. of Dubai, U.A.E., and 25% by International Terminal Holding Limited, an offshore entity owned and controlled by Pakistan-based entrepreneur, Mr. Habibullah Khan. This BOT terminal project, which was awarded following direct negotiations, was the result of Government of Pakistan’s economic policy to encourage private sector investment and participation in the development of the country’s port infrastructure. The total cost of the project was estimated at US$ 211 million. A US$73.5 million 8-year term loan, which was signed on May 15, 2008, and which closed on June 13, 2008, was to be used to finance 80% of the first phase of the project valued at US$94 million. Standard Chartered Bank, Dubai Islamic Bank and National Bank of Pakistan were mandated lead arrangers of the loan, repaying quarterly for 8 years. The arranging fee was at 120 bps under KIBOR (Karachi Interbank Offered Rate). Construction work on phase one, which was to have a design capacity of 300,000 TEUs per annum, was scheduled to commence on Jan. 1, 2008. As of end 2009, construction work on phase one was 44% complete, with completion scheduled for end 2011. Construction work on an additional second phase was scheduled to be complete in 2013. http://www.portqasim.org.pk/future.htm