ASIA

POTENTIAL TAX BREAKS ON OFFER AT GWADAR

20 years ago

Pakistans government is considering extending tax and investment packages to benefit Gwadar Port, although no details are to be released in the near future. In addition, the Minister responsible has made it known that operations at the port will almost certainly be privately operated and that negotiations were underway already with various potential operators. The new port is needed to ease pressure on Pakistans existing infrastructure. For example, in the first six months of the existing financial year, Karachi Port Trust alone reported 46% growth in dry bulk and 26% growth in container traffic.

As readers of PS will have noticed, South Asian port development projects – India in particular – almost warrant their own news department in the magazine. Nevertheless, berth congestion appears to be on the increase at major ports throughout India. For the nine months ending December 2005, the average vessel turnaround time was 3.53 days compared with 3.41 days (2004-05) and 3.45 days (2003-04). In addition, pre-berthing times at major ports have gone up from 4.86 hours (2003-04) to 6.03 hours (2004-05) and thence to 9.16 hours in April-December 2005. During the last calendar year, cargo handled by major ports grew by 12.4%, perhaps explaining the increasing congestion.

Pakistan’s prime minister Shaukat Aziz has given his approval for DP World to bid for the management contract. dredging work is underway in the entrance channel to produce a draught of 14.5m which will make Gwadar Pakistan’s deepest port and hopefully enable it to attract regional transhipment traffic.