Infrastructure and Transport News

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PAKISTAN'S DEEP SEA CONTAINER TERMINAL TO MAKE KARACHI VITAL HUB​

Tuesday November 13, 2007, 4:18 pm

ISLAMABAD, Nov 13 Asia Pulse - Pakistani president General Pervez Musharraf says construction of US$1 billion Deep Sea Container Terminal at Karachi would turn Pakistan into a major transhipment hub for regional states, further bolstering the country's trade and commerce.

Speaking after the signing ceremony between Karachi Port Trust (KPT) and Hong Kong-based Hutchison Port Holdings (HPH), at Aiwan-e-Sadr, he said the government has also decided to set up facilities for ship building and repair at Gwadar deep seaport.

The terminal assures minimum royalty payment of US$1.1 billion to KPT over 25 years concession period. Of ten draft berths at 18 meters depth four will be completed by the year 2010. Under public-private partnership Build, Operate, Transfer concession will be for an initial period of 25 years. HPH will be required to develop the site into a full-fledged modern container terminal with capacity of 3.1 M TEUs.

President Musharraf said Pakistan would be one of few countries in the region to provide shipbuilding and repair facilities. The terminal will be able to accommodate some of the largest ships operating. Pakistan serves as hub for trade between Central Asian Republics, Western China, the Middle East, Africa and Europe. "Our strategic location will be used for trade, commerce, which will be beneficial for the country and entire region. We will be on the world map of ship building, repair and deep sea container handling in three to four years time," the President said.

The terminal will be comprised of US$457 million of Foreign Direct Investment and the remaining US$550 million will be provided by KPT to develop infrastructure for Phase-I. The Chairman of KPT Vice Admiral Ahmad Hayat noted that the total expected income stands at US$3.5 billion in same period. He said the first vessel is expected to sail into new terminal by 2010. It will also have a road, rail link with rest of country, including a proposed cargo village. He said Karachi port would be able to handle the longest and deepest vessels that may wish to access the port. In Phase I, the terminal will be able to handle Super Post Panamax Container Ships.

HPH is one of the world's largest container terminal operators and handled 59.1 M TEUs worldwide, of which 13.1 M TEUs were transhipment. It operates 257 berths in 45 ports in 23 countries.

Finance, Business and Company News - Yahoo!7

 

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PIA to start international flights from Sialkot next year ​

SIALKOT (November 16 2007): Pakistan International Airline (PIA) would start its regular passenger flights between Karachi-Sialkot-Karachi from Sialkot International Airport from November 30 whereas international flights would be begun during 2008 from Sialkot.

Sialkot airport sources told Business Recorder here on Thursday that necessary arrangements have already been completed for the first passenger flight. The Sialkot International Airport has been completed at a cost of Rs 3 billion has a great significance because it was totally financed by the private sector and so far private sector had not built a project of this magnitude and size in the country even in South Asia whereas new Islamabad Airport is being developed at an estimated cost of Rs 20 billion by the government.

This modern and professionally designed airport had been undertaken on Build, Own and Operate basis and has been developed over 1004 acres and fully equipped for handling B 747-400,A300 and 737 aircraft. The potential traffic forecast for Sialkot international Airport is scaled down at the time of opening 530339 passengers a year while estimated cargo tonnage at the time of opening is expected to be 28515 tons. This means that by the end of year 2012 about 53,000 tons of cargo will be lifted from Sialkot airport.

Most modern apron having the parking capacity for six wide-bodies aircraft or three airbus plus F-27 aircraft had been constructed at the airport. Besides, 3600 meter long, 45 meter wide taxiway had been constructed while longest international stand runway of the country measuring 3.6-KM has been constructed which will cater the requirement of all aircraft used for international and domestic cargo and passenger traffic, sources added.

Business Recorder [Pakistan's First Financial Daily]

 

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Construction of 100,000-km roads network planned ​

KARACHI (November 17 2007): Owing to the mushroom increase in vehicular traffic during the last five years, the federal government is planning to construct 100,000-kilometre roads network to overcome traffic and road communication related problems.

Road density is an important factor for economic growth of a country but, unfortunately, it is very low in Pakistan, which is 0.32 kilometre per square kilometre, sources told Business Recorder here on Friday.

"Balochistan is required more roads than Punjab, however, it has only 0.12 per km road density", they added. The introduction of car financing/leasing schemes with government facilitation by financing institutions has contributed a lot to the rapid increase of vehicular traffic.

Despite the sharp increase in vehicles no effective policy has been evolved yet to cater the increasing demands of roads network of the growing population, they said. In wake of this situation, the department has sent a proposal to Islamabad regarding to work out an effective road-transportation mechanism. The proposals are being mulled seriously and hopefully would be approved, they added.

According to a joint survey conducted by National Highways Authority (NHA) and World Bank, 47 percent of highways network were in deteriorated condition and only 28 percent of the network were in good shape.

They advocated of involving the private sector in construction of new highways and evolving a comprehensive road transpiration mechanism for bringing improvement in the situation. They attributed the deterioration of road network in the country to rapid increase in traffic volumes besides insufficient funding to maintain highways and embezzlement of the funds by concerned officials.

Business Recorder [Pakistan's First Financial Daily]

 

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Work on Rs 11 billion Peshawar-Torkham highway to start in January ​

ISLAMABAD (November 19 2007): Construction work on 51 kilometres Peshawar-Torkham Expressway costing Rs 11 billion would start in January 2008 and it would be completed within three years, sources in National Highway Authority (NHA) informed APP on Sunday.

The work on the Expressway will start from Surkamar near Bagyari and winding through Shagai Fort, Ali Masjid, Char Bagh and Landi Khana will end at the Torkham Post on Pakistan-Afghanistan border.

"The expressway is a proof of commitment that the government is showing towards improving the communication system in the remote mountainous areas. It would not only benefit the commuters, frequently using the road but also ensure more job opportunities, development and improvement in the lifestyle of the tribesmen", the sources added.

Peshawar-Torkham Express-way, they added would convert the single lane dilapidated road into a dual carriageway. The project would be completed in two phases. The estimated cost of the 17-kilometre section-II is Rs 5.4 billion while 34 kilometers long section-I will cost Rs 5.64 billion. The PC-I of the project has been approved by the ECNEC while the design has also been prepared.

Besides a tunnel at Char Bagh, a number of flyovers and underpasses have been proposed to facilitate commuters from the villages on both side of the route.

The Japan Bank for International Cooperation (JBIC) would finance the project, which also provided financial assistance for the construction of Kohat tunnel, the longest subway of the country.

He said that the widening of the Torkham-Jalalabad Highway would provide a fillip to trade links with Afghanistan and the landlocked Central Asian countries. Presently Torkham-Jalalabad Highway, lacking the required transportation facilities, was not suitable for strong bilateral commerce. After widening of the Peshawar-Torkham Road all kinds of vehicles would ply on it conveniently.

It may be mentioned here that NHA last year constructed Torkham-Jalababad 70-kilometre highway, Pakistan's biggest ever investment inside the war-ravaged country. The official said the construction of the highway has reduced travel time between Peshawar and Jalalabad considerably.

Business Recorder [Pakistan's First Financial Daily]

 

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PIA launches Karachi-Sialkot flights ​

Sunday, December 02, 2007

KARACHI: Pakistan International Airline (PIA) launched its first Boeing 737 flight operation on Karachi-Sialkot-Karachi sector effective from November 30, 2007, carrying 118 passengers from Karachi to Sialkot on PK-396.

The flight will operate twice a week on every Friday and Tuesday. PIA’s flight operation on the said sector meet a long standing demands of the businessmen and traders of Sialkot and Karachi who frequently have to interact with their foreign links located in Gulf, Far East, Europe and America.

The first PIA flight was greeted at Sialkot Airport by Chief Executive Sialkot International Airport Ltd (SIAL), Khawar Anwar Khawaja, DCO Sialkot, City Nazim Sialkot Akmal Cheema, President Chamber of Commerce and Industry Sialkot, Chairman Pakistan Sports Goods Manufacturers and Exporters’ Association, besides elite of the city.

Addressing the inaugural ceremony of first PIA flight to Sialkot, former chairman SIAL, Mian Riaz said that mega project was first in South Asia completed by the collective efforts of private sector on self help basis.

It reflects Sialkot-based business and trading communities’ struggle and commitment which so far has been backed by dedication, sincerity and focused zeal, he added. It may be added that the Sialkot International Airport has been completed at a total cost of Rs2.5 billion through internal fund raising by the spirited entrepreneurs of the city, which primarily is the first private sector investment in building a project of this magnitude and significance in the country as well as in South Asia.

It is located over an area of 1,050 acres of land and fully equipped for handling Boeing 747 and Airbus 300 aircraft, it opens a remarkable chapter in Sialkot region’s aviation history (with 20 million people) since it caters to the sentiments and air travel needs of the people of the area.

The expected cargo business, once it moves into full swing, is likely to be 53,000 tonnes to be air lifted from the city by the end of 2012. The potential traffic forecast for Sialkot International Airport is estimated to be 53,000 plus passengers a year, once the PIA flight operation moves into full strength.

PIA launches Karachi-Sialkot flights

 

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IFC loan of $22 million for Airblue​

Washington: The International Finance Corporation (IFC) is to sign a loan agreement of $22 million next week with Airblue, the largest private airline in Pakistan, to enable the private carrier to expand its operations. The IFC loan will help in the financing of pre-delivery payments towards the purchase of six additional A360s. The new aircraft will enable Airblue to increase the frequency of its flights to current destinations and to introduce new international destinations in Europe, the Middle East and South Asia. Airblue will be represented at the signing ceremony by Ali Siddiqui, a director of the company, Nasir Ali, managing director, and Farida Khambata, vice president for Asia. Rashad Kaldany will sign the deal on behalf of the IFC. Ambassador Mahmud Ali Durrani and Pakistani journalists have been invited to the event. khalid hasan

Daily Times - Leading News Resource of Pakistan

 

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Foreign investors eye Pakistani air routes ​

Tuesday, December 11, 2007

KARACHI: The Civil Aviation Authority (CAA) of Pakistan is in negotiations with two Middle Eastern parties interested in starting domestic air service in the country, Director General CAA Farooq Rehmatullah told The News on Monday.

The prospective air service might also extend to other countries of the region, he said, but preferred not to disclose the names of the potential investors at this point of time. The new aviation policy allows private carriers to go international after completing the mandatory one year operational period on domestic routes.

This disclosure comes on eve of the formal inauguration of the first privately run airport of the country and coincides with a period which is seeing a growing interest in the international air traffic from Pakistan with some major airlines increasing their number of frequencies and adding more cities to their networks.

However, this interest in the international passengers has not been complemented by any surge in competition on domestic routes primarily because of the poor financial health of the Pakistan International Airlines (PIA) and inability of other domestic carriers to expand their wings in a big way.

Even the encouragement offered by the new aviation policy for start of an air service on domestic routes with minimum investment has not materialized. The policy says intercity routes could be allotted to airlines which own small aircraft.

“It is not lack of interest. Such things take a lot of time,” Remattullah said. “You need engineering support and pilots and the cabin crew needs to be trained.” CAA has already accorded permission to a private carrier to operate commuter service between Karachi, Hyderabad and Lahore.

The airline, Aircraft Sales and Services (ASSL), will use a 48-seater twin engine aircraft on the route that links two domestic transit hubs with a relatively less developed city. ASSL was to start the operations back in September on thrice weekly basis but the inauguration has been delayed till next year. DG CAA also said that a number of private investors have showed interest in building and running private air strips in line with the Sialkot International Airport.

Foreign investors eye Pakistani air routes

 

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First private airport to be opened today ​

Tuesday, December 11, 2007

KARACHI: The Sialkot International Airport (SIAL), Pakistan’s only private airport, will be formally inaugurated today (Tuesday).

The SIAL is one of its kind community-based project and has been completed on build, own and operate (BOO) basis by the exporter community of Sialkot. Civil Aviation Authority (CAA) will act as the regulatory body and will be providing necessary technical support during operation of the airport.

Construction of the international airport at Sialkot was first approved in the year 2001 by President Pervez Musharraf and an amount of Rs230 million was allocated for the project. The airport is equipped with all international standards to facilitate national and international flights.

Situated in the heart of the country’s industrial hub, the site of the airport spans across 1050-acres and is 14km west of Sialkot with existing road links to Wazirabad, Gujrat, Gujranwala, Narowal, Sialkot city, Sialkot Export Processing Zone and Sialkot Dry Port, where a large number of potential passengers exist, who are frequent flyers with in and outside the country. An important feature of this airport is the runway which is 3,600 meters long, 45-meters wide with 7.5-meters wide shoulders on each side, making it one of the largest runways in the country.

First private airport to be opened today

 

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Infrastructure improvement ​

ADB loans $1.15bn to Pakistan

Wednesday, December 12, 2007

KARACHI: The Asian Development Bank (ADB) will provide Pakistan up to $1.15 billion in new loans to expand its key north-south highway network and for public sector reforms in Punjab.

Of the total, $900 million will be spent to rehabilitate and expand key sections of the country’s main highway network, which starts at the port city of Karachi and runs northward, the international development lender said in a statement issued here on Tuesday.

“Both of these programmes will boost the economy, which generates new jobs and reduces poverty,” said Sean O’Sullivan, Deputy Director General of ADB’s Central and West Asia Department.

A lack of adequate roads in Pakistan is leading to a transport bottleneck. It is a constraint to improving competitiveness and attracting private sector investment, the ADB said. “With trade flows concentrated along one major north-south transport corridor, this programme will make road traffic more efficient and reduce transport costs,” said ADB Senior Investment Specialist Cleo Kawawaki.

“Cheaper transport costs will increase private sector productivity, which will help deepen and diversify the industrial base, both of which are necessary to provide jobs for the growing population,” she said.

The $900 million will go toward a $5.36 billion investment plan by Pakistan’s National Highway Authority, which includes upgrading the highway from Karachi to Peshawar, as well as links to the port of Gwadar and the People’s Republic of China.

Once the road improvements have been completed, travel times between Karachi and Peshawar, a distance of 1,700 kilometers, will be cut from 72 hours to 36. The upgrade is also crucial for regional trade flows and will allow Pakistan to act as a transit artery for goods moving between Arabian Sea ports in the south and Central Asia and China in the north.

Funds from the first trench, $545 million, will be used for two road projects: a 184 kilometer stretch from Faisalabad to Khanewal, as well as a separate 34 kilometer expressway from Torkham, on the Afghan-Pakistan border, to Peshawar.

For the subsequent tranches, depending on the appetite from private sector, structures such as guarantees and equity financing can be used under the programme to foster public private partnership in the road sector.

In addition to the $900 million, the ADB will provide Pakistan with $260.65 million in loans and grants to assist Punjab in order to pursue reforms that will improve efficiency in the public sector.

Infrastructure improvement

 

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Islamabad Highway and Murree Road — a picture in contrast​

ISLAMABAD: The Islamabad Highway and Rawalpindi’s Murree Road are a picture in contrast – on one the traffic flows freely while on the other it barely moves.

Although the highway has seen a tremendous increase in traffic in recent years, yet traffic jams, as are a routine on Murree Road, do not occur.

While the Capital Development Authority (CDA) has plans to convert the highway into an expressway with interchanges and underpasses, the authorities in Rawalpindi appear to sit tight on their plans of building an overhead above the busy road.

Traffic gets choked at several points on the road that runs through the heart of the city with Naz Cinema, Committee Chowk, Liaquat Bagh and Mareer Hassan being the biggest trouble spots.

An estimated 150,000 vehicles pass through these places daily, such is the rush of traffic that continues throughout the day and it is only late at night that it reduces.

In this light, it is a pity that the town planners have shown no urgency whatsoever in executing the proposed elevated expressway project above the stretch from the Mall to Faizabad. The plan remains on the drawing board with people now beginning to wonder if the project will ever take off.

District Nazim Raja Javed Ikhlas said that the expressway was at a consultancy stage. “The Punjab Government has given the go-ahead for it and funds have been earmarked,” he said.

But willingness to get the project going in earnest is not evident as motorists who have no option of avoiding the Murree Road continue to face hardship everyday. A move to make an underpass at Committee Chowk in a bid to ease the flow of traffic proved useless for the intersection remains the bottleneck as it always was.

Traffic in Rawalpindi has increased at such a rapid pace that even the Rawal Road that was built to ease the load on Murree Road, does not appear to have adequately served the purpose. Perhaps it is a case of flawed planning.

However, in comparison the CDA appears much efficient in decision-making and planning in deciding on what would be the shape of the highway it controls.

An official of the CDA told Daily Times that the plan is to build a dozen interchanges and underpasses over a period of three years and make the road from Zero Point to Rawat Toll Plaza signal-free.

“We plan to have five interchanges on this stretch and seven underpasses which will be in addition to the Zero Point Interchange,” he said. Unlike their counterparts in Rawalpindi, things are quite clear and the given time frame is appreciable.

The planned interchanges will be built at Khanna Bridge, Karal, Soan and Rawat while there will be underpasses at Defence Housing Authority, Japanese Road, Soan Garden Scheme, PWD Housing Scheme, Kurri Road and Sector I-8 Intersection.

The CDA also intends to add a rigid lane on either side of the highway for heavy traffic. Surely, the civic managers have a clear line of thinking while those in Rawalpindi do not seem sure of what course of action to adopt, no wonder the two authorities are a picture in contrast.

Daily Times - Leading News Resource of Pakistan

 

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New Islamabad International Airport: CAA directed to accelerate pace of work ​

ISLAMABAD (December 14 2007): Caretaker Minister for Defence and Defence Production Syed Salim Abbas Jilani has directed the Management of Civil Aviation Authority (CAA) to accelerate the pace of work on New Islamabad International Airport to accomplish the project within the given time.

He said this during his visit to the site of the New Islamabad International Airport (NIIA) here on Thursday. Project Director of NIIA, Brigadier Iftikhar Ali (retd) in a detailed presentation to the Minister highlighted various features of the project and progress achieved so far.

He informed the Minister that Civil Aviation Authority (CAA) had planned to equip the new airport with state of the art facilities for both domestic and international passengers. The project director said the new airport would have the capacity to cater to the needs of nine million passengers annually. He said that about 82 percent work on both the runways has been completed and the remaining work would be accomplished shortly.

The Minister visited the under-construction runways and other sites of the project and reviewed their progress. He appreciated the efforts of CAA and asked its management to ensure the quality of work and gear up their efforts to complete the project within the stipulated time.

The project director informed the minister that the new airport would be ready by the end of 2010. Additional Secretary, Ministry of Defence Major General Haider Ali Khan, Director General CAA, Farooq Rehmatullah and other senior officials of CAA and Ministry of Defence were also present.

Business Recorder [Pakistan's First Financial Daily]

 

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CAA to spend Rs270m on Quetta airport ​

Sunday, December 16, 2007

KARACHI: Civil Aviation Authority (CAA) has allocated Rs270 million for the upgradation of all facilities at the Quetta International Airport, said a handout issued here on Saturday.

During a visit to the airport between December 14 and 15, 2007, Director General CAA Farooq Rehmatullah also announced various projects for the airport which include installation of the Instrumental Landing System (ILS) and expansion of terminal building.

He further said that 15 per cent rise in salary has been announced for the CAA employees and a new performance-based appraisal system is in place.

Highlighting recent milestones achieved by the CAA, the DG said that Allama Iqbal International Airport, Lahore is ranked among the world’s best airports in service performance conducted by the Singapore Airline.

He added that the CAA has planned to equip the New Islamabad International Airport with state-of-the- art facilities for both domestic and international passengers and the new airport would have the capacity to cater to the needs of nine million passengers annually.

He also mentioned that CDWP has approved Rs455 million for the upgradation of the radars to be at par with international standards.

CAA to spend Rs270m on Quetta airport

 

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Pakistan to develop transport linkages with neighbours ​

ISLAMABAD (December 17 2007): Federal Minister for Communications Barrister Habibur Rehman said on Sunday that the country embarked upon an ambitious plan to revamp its existing transport infrastructure network by developing the land and land-cum-transport linkages with all neighbouring countries particularly landlocked countries.

The minister said the induction of the country as permanent member of International Transport Corridor Europe-Caucasus-Asia (Traceca) will promote inter-regional cooperation trade and tourism in the years to come among the member states of the organisation. It is pertinent to mention here that country has been inducted as permanent member in 6th meeting of the Inter-Governmental Commission for development of the International Transport Corridor Europe-Caucasus-Asia (Traceca) in Astana Kazakhstan, attended by Secretary Communications Sajid Hussain Chattha, he said.

After country declared as the permanent member of Traceca, the minister said, the country will meet the challenges of serving as a regional hub for international trade not only for landlocked Afghanistan and Central Asian Republics but also provide land bridge between China, Middle East and Gulf countries.

Habibur Rehman said that the government is determined to translate President Pervez Musharraf's vision to transform the country into a developed, industrialised and knowledge based economy by using its geo-political location.

Enhancing economic partners in region, country is currently establishing the North-South National Trade corridor and energy corridor linking countries of the region with Gwadar seaport to develop highways, he added.

The minister is optimistic that Pakistan having tremendous human and natural resources as well as technological capability will emerge as the engine for growth for the entire world.

He is confident that with the new membership, he can foresee a global scenario where Asians equally share the benefits of globalisation, progress and development.

Business Recorder [Pakistan's First Financial Daily]

 

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CDA shortlists three firms for Rapid Mass Transit project​

ISLAMABAD: The Capital Development Authority (CDA) has short-listed three international consultant firms for a feasibility study of Rapid Mass Transit System (RMTS) between Rawalpindi and Islamabad, a senior official of CDA Planning Wing told Daily Times.

The CDA Planning Wing will select one of these firms within the next few days to conduct the feasibility study of the project, he said, adding that the authority had prepared a Term of Reference (TOR) to launch the project.

The official said that the CDA, after receiving technical and financial bids from the interested international firms, had sent the TOR to them. The authority had selected five firms for pre-qualification, he added. He said, through the TOR the authority had informed the interested firms that they would have to collect and review all planning and transportation data of Rawalpindi and Islamabad.

The official said, according to the TOR, the selected firm would conduct comprehensive field surveys and traffic counts to understand present day travel requirements. The firm would also review current travel patterns and the operation of available public transport systems for the development of the RMTS system, he said.

He added that under the TOR, the firm would be bound to complete the feasibility study within eight months. The traffic problem is being aggravated due to the growing population of the twin cities. He added that the population of the twin cities was growing at a rate of more than four percent per year, comparatively higher than the national growth, indicating a significant increase in migration to the cities from rural areas.

The official said, according to the TOR the present population of Islamabad was 1.2 million and currently both the cities could accommodate a population of over 2.78 million. With the present growth trend, it is expected that it will increase to seven million in 25 years, therefore the launching of the RMTS on an immediate basis is a must, he added.

Daily Times - Leading News Resource of Pakistan

 

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Rules amended to facilitate foreign airlines ​

Tuesday, December 18, 2007

KARACHI: The State Bank of Pakistan (SBP) has amended its foreign exchange regulation to facilitate foreign airlines in Pakistan.

In circular No 05 issued on Monday, the SBP said, “under the existing regulations, in terms of para 3(d), Ch XIV, FEM-2002, foreign airlines are required to submit application along with all relevant documents including passage statement (V-37) to authorised dealers for effecting remittances of surplus passage and freight collection.

Now, it has been decided that instead of V-37, Foreign Airlines will henceforth submit BSP Sales Statement, which is being provided by the International Air Transport Association (IATA) to each Airline in Pakistan

However, data contained in V-37 statement should readily be available with the concerned ticket issuing office.” It further said that in terms of instructions contained in Para 6, Chapter XVII, FEM-2002, at present Airlines in Pakistan have been restricted from issuance of tickets to Saudi Arabia or its adjoining countries during the Hajj Season i.e. from 10th Shawal to 10th Zilhaj each. Now, it has been decided to waive this restriction and accordingly, Para No. 6 appearing in Chapter XVII of FEM-2002 is hereby deleted.

Rules amended to facilitate foreign airlines