ISLAMABAD, AUG 18, Dubai Port World (DP-World) will invest $211 million for to establish second Container Terminal at Port Qasim, Karachi on Built Operate and Transfer (BOT) basis, says an official statement.

DP-World CEO Mohammad Sharaf and Chairman Port Qasim Authority (PQA) Vice Admiral M Asad Qureshi signed an agreement to the effect in the presence of Prime Minister Shaukat Aziz and Minister for Ports and Shipping, Babar Khan Ghauri.

Speaking on the occasion, Aziz termed the agreement historic and said Pakistan being a growing economy needs better means of communication and good infrastructure to support its domestic, external and transit trade activities.

He said Pakistan being at the cross-roads of South Asia, Central Asia and the Middle East offers greater trade and investment opportunities including transit trade.

Aziz said with two seaports already functioning and the completion of Gawadar Deep Sea Port by the end of this year, Pakistan would truly serve as transit trade corridor for the region.

The project, which is the highest ever foreign direct investment in port sector, and to be completed in three phases with an overall capacity of 1.15 million TEUs, will enhance the total TEUs capacity of PQA to about 1.75 million.

Apart from doubling the container handling capacity, the 2nd Container Terminal will bring Rs 60 billion earning in direct revenue for the Port Qasim in 30 years.

Under the agreement, the first Container Terminal has also been converted into BOT from BOO, besides the rate of per move of royalty enhanced to US $ 9.2 from the previous US $ 4.

In addition to $ 211 million in 2nd Container Terminal, the DP-World has an investment of $ 100 million for First Container Terminal. Further investment of $ 60 to $ 100 million is also expected for channel dredging.