Maritime ministry rejects proposal for two ports’ merger

ISLAMABAD: The Ministry of Maritime Affairs has turned down a suggestion put forward by members of the Senate Standing Committee on Maritime Affairs for administrative merger of two key ports to reduce unnecessary administrative expenses and streamline their affairs.

The committee meeting, held here on Thursday under the chairmanship of Senator Faisal Vawda, discussed development and expansion of the maritime sector.

Some members of the committee suggested a feasibility study related to the merger of Karachi Port Trust (KPT) and Port Qasim Authority (PQA). Members stressed that apparently, it would be a costly affair to operate the two institutions as separate entities versus a potential merger of the PQA and KPT.

In response to the cost-cutting suggestion, Minister for Maritime Affairs Qaiser Ahmed Sheikh claimed that PQA has a unique business model, which includes an industrial complex with 18 berths that is a blend of public-private partnerships (PPP).

“There are some key competitive advantages of PQA, such as lower tariffs compared to KPT and its strategic location near LNG zones, projecting its operational sustainability until 2040,” Mr Sheikh said.

The minister asserted that maintaining two distinct ports fosters healthy competition and enhances the overall performance. The committee was also informed that there was significant potential for attracting investments in the country’s maritime sector, signalling a blue economy revolution.

“Foreign investors from China, Dubai, Saudi Arabia, and Qatar have expressed keen interest in investing in the sector,” the minister claimed.

The committee discussed strategic development of Gwadar Port, but the focal points remained the security concerns, infrastructure deficiencies, and the necessity for a direct passageway to Central Asia and China from Gwadar.

Officials said that the development of a free zone, initiation of industrial activities under the China-Pakistan Economic Corridor, and construction of the second-largest airport in Gwadar were transformative projects.