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Karachi Port Trust, in order to maintain its edge over Port Qasim as the primary
Port of Pakistan, sought proposals from private sector investors to develop the
second modern, fully equipped international standard container terminal at East
Wharf, Karachi Port.
Against competitive bidding, Premier Mercantile Services (Pvt.) Ltd. ("PMS"), a
Marine Group Company, was awarded a 21-year Concession to build and operate a dedicated
container terminal at Berths 6-9, Karachi Port, on a BOT basis in April 2002. Following
extensive negotiations, an Implementation Agreement was entered into with the Trustees
of the Karachi Port Trust, which inter alia detailed the commercial, financial and
technical terms of the Concession. This Agreement also provides for the terms on
which PICT will be required to implement additional Phases of the Project. The important
relevant provisions required:
a) The setting-up by PMS of a Terminal Operating Company ("TOC") to design, finance,
construct and operate a dedicated container terminal with a capability of handling
up to 450,000 Twenty Foot Equivalent Container Units ("TEUs") per annum on berths
6-9 East Wharf for a period of twenty-one (21) years in phases linked to traffic
growth on a BOT basis;
b) A commitment to meet the expanding needs for future container traffic growth;
c) To complete the physical implementation of Phase I by April 17, 2004.
Pakistan International Container Terminal (PICT) was formed as the Terminal Operating
Company and took over dedicated container terminals on October 15th, 2002. PICT
achieved successful completion of all contractual obligations of Phase-I development
earlier than schedule on March 31st, 2004
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