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Friday, October 24, 2008

KARACHI: Port Qasim Authority (PQA) has planned to develop infrastructure costing Rs11 billion by year 2011 to meet requirements of the investors, says Chairman PQA, Mir Afsar Din Talpur.

One hundred and nine industrial and commercial units are operative and 184 units more are at different stages of development at three industrial zones of Port Qasim Authority, located near the port. Among investors are national and international players in manufacturing, industrial processing and services, he said.

He was speaking at a seminar on “Role of Port Qasim Authority in Pakistan’s Economy” here, a PQA release issued on Thursday said. The seminar was organised by Chartered Institute of Logistics and Transport Pakistan. The PQA Chief informed that in financial year 2007-2008, 35th year of PQA history, the authority handled 26.42 million tonnes of cargo at its 10 heavy-duty berths, representing 41.57 per cent share of Pakistan’s total sea-borne trade. It earned gross revenue of Rs4.78 billion that exceeds the total capital cost of 8-berth 1st phase of the project.

This has added a new dimension to the economic skyline of Karachi, contributing substantially not only to the National Gross Product, but also to the generation of employment for the people of Karachi and the surrounding region. PQA has just completed its 35 years of existence end of June 2008.

He paid tribute to all those, whose efforts, hard work, support, commitment and resources have gone into making PQA what it is today. Thirty five years of PQA mark a long voyage with lot of ups and downs, and stormy spells. Yet, along the course, it turned out to be an exiting and rewarding success story of a leading public sector enterprise of Pakistan.

PQA Chairman said the authority created economic value in the form of Port Qasim infrastructure through the merger and integration of sand dunes of Pipri and shoreline. Thus, it emerged the commercial port as the 2nd gateway to the world markets in support of KPT for our imports and exports by sea. Through availability of port infrastructure at its doorstep, Pakistan Steel was able to start its production on time schedule, he said.

To further implement the mandate for an industrial port, PQA undertook the other phase of value-creation for the economy, by developing in parts, 12000 acres of land above high-water mark as zones for industrial, commercial and service units.
 

Friday, October 24, 2008

SIALKOT: National flag carrier Pakistan International Airlines (PIA) has finalised all arrangements for commencing twice-weekly international flights from the Sialkot International Airport.

PIA’s District Sales Manager Khalid Hameed, talking to APP here on Thursday, said that PK-253 will take off for Abu Dhabi at 11.30 am from the Sialkot airport on October 26, and will return at 7.10 pm.

Direct flight on the Sialkot-Muscat section will commence on October 29, he said, adding that Abu Dhabi and Muscat-bound flights are fully booked which is a healthy omen for the national carrier as well as trade and commerce.

A large number of overseas Pakistanis and members of the business community from Gujranwala, Gujarat, Narowal, Jehlum and other adjoining areas as well as Mirpur, Azad Kashmir will benefit from the new service, he added. PIA is already operating flights on Sialkot-Kuwait and Sialkot-Karachi routes.

Meanwhile, airport sources here disclosed that Qatar Airways will also operate a cargo flight from here on October 27. Air traffic of the region is estimated at 446,000 passengers per year, which is expected to increase by 6 per cent per annum, while the current air cargo is around 24,000 tonnes per year, expected to increase to 53,000 tonnes by the year 2014.

Sialkot International Airport handled almost 14,000 tonnes of cargo in the first year of its operation.
 

KARACHI: PIA will fly directly from John F Kennedy Airport to Lahore twice a week every Saturday and Wednesday for the convenience of its passengers. This will reduce their travel times by three hours. PIA has also finalised arrangements for commencing new destinations, both local and international, for the convenience of its passengers. Direct flight to Abu Dhabi from Sialkot International Airport every Sunday will commence from 26th October 2008 while direct flight for Muscat from Sialkot International Airport every Wednesday will be commencing on 29th October 2008 to facilitate the passengers and to meet the demand of business community of the region.
 

SIALKOT (October 27 2008): Pakistan International Airlines (PIA) has started second international flight from Sialkot, as a PIA plane, flight PK 253, with large number of passengers took off from Sialkot International Airport to Abu Dahabi here on Sunday.

With the introduction of Abu Dhabi and Muscat bound flights, PIA is now operating three weekly international flights on Sialkot-Kuwait, Sialkot-Abu Dahabi and Sialkot Mascat routes from the Sialkot.

Addressing the flight launching ceremony held at Sialkot International Airport, General Manager PIA Passenger Sales Domestic Nauman A. Shah said that PIA was focusing on initiating more flights on various routes to European and Middle East countries to facilitate the overseas Pakistanis and business community of Sialkot.

Apart from this, operating of cargo flight from Sialkot International Airport was also under consideration and hopefully after completion of Hajj season the PIA high ups would decide about it.

The national flag carrier had become first airline and taken the lead in initiating its international flights from Sialkot International Airport, he said.

Nauman Shah further stated that PIA was making efforts and playing an instrumental role in making the Sialkot International Airport successful. He added that it was heartening to note that PIA was already operating successfully Sialkot-Kuwait and Sialkot-Karachi flights from Sialkot International Airport.

On this occasion he lauded the efforts of private sector of Sialkot for establishing international airport on self-help basis and foresees that in near future this airport would be the busiest airport of the country.

Speaking on the occasion Chairman SIAL Chaudhry Ghulam Mustafa thanked the PIA for initiating more flights from Sialkot and underscored the need of launching cargo service from Sialkot international airport to facilitate the exporters of the area. Later, General Manager Passenger Sales Domestic Nauman A. Shah, District Manager Syed Tariq Ismail, Khalid Hameed District Sales Manager PIA Sialkot along Chairman Sialkot International Airport Limited (SIAL) saw-off the passengers.
 

ISLAMABAD (October 27 2008): National Highway Authority (NHA) will spend Rs 500 billion on construction of National Trade Corridor (NTC), upgradation of Karakoram Highway (KKH) and providing connectivity to Gwadar Port by end of 2010.

Chairman NHA Altaf Ahmed Chaudhry told APP in an exclusive chat here Sunday that the authority would spend Rs 200 billion on construction and upgradation of motorways and expressways as part of NTC to provide link to Afghanistan and Central Asian countries.

The NTC will link upper parts of the country in the North with ports in the South to reduce travel time and fuel cost by improving existing road network, N-5, N-55 and introducing new motorways, M-4, M-5, M-6, M-7, M-8, M-9. On completion of the road development network, he said, the travel time from Peshawar to Karachi would be reduced by 50 percent, traffic accidents by 70 percent and road losses would be reduced to the tune of $1.5 billion per annum.

To a question he said widening and rehabilitation of Hasanabdal-Abbottabad-Thakot-Gilgit-Khunjerab (KKH) Highway (N-35 also known as Karakoram Highway (KKH) was one of the priorities of the NHA. He said that Rs 45 billion are being spent on upgradation of Raikot-Khunjerab section of the KKH. He said work on Mansehra-Sazin section of N-35 would start in a couple of months. After rehabilitation and expansion of KKH, which was eighth wonder of the world China, Kazakhstan and Kyrghazistan could export their goods through Gwadar ports. He said that 140 kilometres section of KKH would submerge in Basha dam water and new road would be constructed on new alignment by 2015.

To a question Chairman NHA Altaf Ahmed Chaudhry said that 40 percent of NHA projects were in Balochistan and timely completion of these projects will enhance the socio-economic position of the people and would enhance inter-provincial harmony. He said that Shadadkot-Wangu Hills section and Wangu Hills-Gwadar Section of Ratto Derro-Gwadar Motorway would be completed by end of 2010, which would play in key role in providing much needed connectivity to Gwadar port.

He said that Karachi-Bela-Khuzdar-Kalat-Quetta-Chaman Highway (N-25) would be rehabilitated by end of 2010 which would also provide connectivity to Gwadar and reduce travel time from Quetta to Karachi to about five hours. The NHA chairman said that out of 500 kilometers 225 km section of the D.I.Khan-Zhob-Kuchlack Road (N-50) has been completed while the rest would be completed by 2010. He said that upgradation work of Quetta-D.G.Khan section of N-70 funded by ADB and government of Pakistan is underway and would be completed by 2010. Replying to a question, he said that the roads network across Balochistan would be completed by 2012. He said the federal government was spending billions of rupees on the construction of roads in Balochistan, which would connect the province with Central Asian states. He said the Lak Pass Tunnel was the part of the Kalat-Quetta-Chaman highway and would be opened early next year.
 

NEW DELHI (October 28 2008): India has no immediate plan to re-start flights to Pakistan which were suspended in March this year citing commercial reasons. Low load was the factor behind suspension of flight to Lahore in March last. However, Pakistan International Airlines continued its flights from Lahore to Delhi.

"The Times of India" quoting a senior Air India official said this was not the right time to launch any new flights. Pakistan and India restored air links in January 2004. Pakistan and India in recent months have also decided to operate flights to Islamabad and Chennai.
 

KARACHI, Oct 28: Pakistan International Airlines announced a big nine-month loss on Tuesday, blaming a spike in global fuel prices and the sinking value of the rupee.

The flag carrier posted an after-tax loss of Rs38.4 billion for the period ending September 30, compared with Rs10 billion in the same period a year earlier.

Fuel expenditure alone had increased by Rs12.2 billion over the nine months compared with last year, the airline said in a statement.

A further Rs22.8 billion was lost due to the “steep depreciation” of the rupee against the dollar and the need to pay dollar-denominated loans and lease obligations, it added.

“The board observed that if the current downward trend of fuel price continues, the financial position of PIA would improve going forward,” the statement said.

“The airline will work on measures to contain the loss situation and bring about sustainable improvement in the near future that should make PIA a profitable organisation,” a spokesman said.—AFP
 

KARACHI (October 29 2008): Sindh Minister for Industries and Commerce, M.A. Rauf Siddiqui has feared that Rs 750 million allocated for infrastructure development of three industrial estates of the city may lapse in one month.

Speaking at a meeting of Federal 'B' Area Association of Trade and Industry (FBAATI) on Tuesday, he said that the government has allocated Rs 250 million each for four industrial estate management companies namely Korangi Industrial Trading Estate (Kite), Landhi Industrial Trading Estate (Lite), North Karachi Industrial Trading Estate (Nite) and Federal 'B' Area Industrial Trading Estate (Fite).

Out of them, only one ie, Kite has initiated industrial infrastructure development work in its respective area while the other three made no efforts. The minister said that Nite, Lite and Fite have only one month to initiate development work in their respective areas otherwise the funds will stand lapse.

He advised the management of these companies to take guidance from Kite and prepare infrastructure development PC-1 as well as get it approved from him as soon as possible. Dispelling impression that the funds allocated for industrial infrastructure development has been freeze, he said that the amount is with the management companies and they can utilise it within next one month.

He said that the management companies have very short time and they must act fast to develop infrastructure in their respective areas. He assured the industrialists that the government is ready to provide maximum facilities for development work in industrial areas.

Chairman, FBAATI, Idrees Gigi expressed concern over long hour and frequent load shedding in industrial area. He said that industrialists are facing problems in meeting production target and on time delivery of goods due to load shedding.
 

SIALKOT (October 30 2008): The national flag carrier PIA's first direct international passenger flight (PK-229) between Sialkot to Muscat took off from Sialkot International Airport, here on Wednesday. The high profile PIA officials from Lahore, Islamabad and Karachi seen off the passengers during a special ceremony held at Sialkot International Airport under the auspices of Pakistan International Airlines (PIA), here.

Chairman Sialkot International Airport Limited (SIAL) Ghulam Mustafa Chaudhry, Senior vice chairman Dr Sarfraz Bashir, general manager Muhammad Nawaz Chaudhry and President Sialkot Chamber of Commerce and Industry (SCCI) Dr Khurram Anwar Khawaja, former Chairman Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) Professor Safdar Sandal, travel and cargo agents and Sialkot based senior journalists were also present on this occasion.

Later, the senior PIA officials told the newsmen that the PIA would soon start its direct international passenger flights between Sialkot-Dubai, Sialkot-Jeddah-Al-Riyadh (Saudi Arabia). They said that it was the third international destination of PIA from Sialkot.

Earlier, the PIA was successfully operating the direct international passenger flights between Sialkot-Kuwait and Sialkot-Abu Dhabi and now between Sialkot-Muscat. They said that the direct Haj flights from Sialkot are also expected to be started from next year. Moreover, the Qatar Airways successfully started its direct international cargo flights between Sialkot-Pakistan and Doha-Qatar.
 

KARACHI: Pakistan International Airlines (PIA) has achieved a record seat utilisation of 74.5 percent on its scheduled services in October this year, which is the record high passengers occupancy of airlines in this month during the last 19 years.

The international scheduled seat utilisation was recorded at 74.9 percent while the domestic scheduled seat utilisation stands at 72.1 percent in this season. The system seat utilisation, inclusive of non-scheduled operation was 73.2 percent, which is also the highest ever achieved during the month of October since last 19 years.

This exceptional performance, besides being the result of better reservation and revenue management discipline, was primarily due to better sales efforts by the airline all over its network. During October 2008, PIA achieved a 26.1 percent increase in RPKs (traffic) over October 2007 on international routes. Similarly on domestic routes the increase in RPKs (traffic) was 16.9 percent over the same month last year. Thus, system traffic growth achieved by PIA was 24.8 percent in October 2008 over the same month, last year.
 

ISLAMABAD (November 09 2008): National Highway Authority (NHA) will soon issue new tenders for conversion of Super Highway between Karachi and Hyderabad into six-lane Motorway (M-9), a source in ministry of communications informed APP on Saturday. The NHA had signed a concession agreement for the construction of 136 km project, with the Standard Construction firm in September 2006 but the contractor failed to arrange equity and bank guarantee in time despite grant of six-week extra time.

After expiry of the extra time the bank guarantee of the contract was scrapped, the source said, adding that the NHA has filed a lawsuit against the contractor and the matter is sub judice.

"Present road link between Karachi and Hyderabad known as Super Highway is a 4-lane divided highway and is the most important link of Karachi Port and Port Qasim to the rest of the country. With the construction of Gwadar Port, it is envisaged that the traffic on this route will increase manifold," the source said.

This highway link is in dire need to be upgraded to a motorway standard to meet post-Gwadar traffic. The project supposed to be country's first major project to be built on build, operate, transfer (BOT) basis whereby the contractor would construct the project and operate it for 25 years before handing it over to the government.
 

Tuesday, November 11, 2008

ISLAMABAD: PIA Managing Director Captain Ijaz Haroon on Monday told the Senate Standing Committee on Defence that the airline has prepared an Rs55 billion bailout plan to overcome the current deep economic crunch.

The plan would be presented for consideration before the Economic Coordination Committee of the Cabinet (ECC) at its meeting to be held in the third week of the current month, he stated while replying to a question by the Chairman of the committee Senator Nisar A Memon. “We have proposed a number of viable steps to overcome economic depression confronting the airline and if the plan is approved the airline can become profit earning organization by 2010,” MD said.

The chairman directed the PIA management to look into the matter of Hajj and Ummrah fares as according to the committee these were on higher side due to the fact that oil prices in the international market have substantially decreased. The committee set a deadline for a positive reply from the airline on the subject by the first week of next month.
 

ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC) approved the ‘Up-gradation of Karakuram Highway with cost of Rs 12.058 billion to facilitate the Bhasha dam. The ECNEC meeting was held her under the Chairmanship of Adviser to Prime Minister on Finance Shaukat Tarin. The council considered a number of development projects for approval in the field of energy, environment, supply of clean water, highways, and railways. The development projects considered on Tuesday for the approval are to be completed in all the four provinces, Northern Areas and AJK.

The ECNEC also approved the reconstruction of projects of Rawalakot worth Rs 8.202 billion and Bagh worth Rs 7.349 billion, which were affected by 2005 earthquake. The ECNEC also approved rehabilitation and widening of earthquake-affected road, Alpuiri-Besham section of N-90 worth Rs 874.170 million. The ECNEC discussed replacement of Railway signaling system for the sector Lodhran-Shahdaram, double gauge tracks for Mirpur Khas- Khokarapar, and, double railway track for Lodhran-Khanewal sector. In the communication sector among others, the ECNEC approved the 106km road project for acquisition of land and procurement for Hasanabdal-Havallan- Mansehra Expressway worth Rs 2.997 billion. In the energy sector, the meeting approved ‘Interconnection of 9 IPP’s with National Grid’ worth Rs1.185 billion to ensure generation of additional 1600MW of electricity.

The committee also approved power distributions enhancement project phase-1 to reduce energy/line losses worth Rs 908.590 million. In the water sector, the ECNEC approved capacity building and advisory services project and advised ministry of Water and Power to initiate the process.
 
By Munir Attaullah

I am not suggesting for a moment that all road development projects should be abandoned until other basic civic amenities have been provided. My concern is only a more judicious allocation of the available funds, percentage wise, between competing priorities

Last week I drove alone on the motorway to Islamabad and back. The thin traffic on the road, even a decade or more after its opening, was screaming proof that the potential economic returns, direct and indirect, never did justify the huge investment in the project.

I remembered how most sensible people, even then, instinctively knew the motorway would be a white elephant. But — to introduce a different touch of colour — it seems ‘prestige’ projects are, to use a Jack London phrase, the ‘pink elephants’ our high and mighty decision-makers often hallucinate about during office hours. Driving alone in the sparse traffic allowed me the luxury to muse about this whole matter of misallocation of scarce public resources.

I am not thinking here about private planes, bulletproof cars, bulky cabinets, and foreign junkets and the like. For, it is unrealistic to hope that such demands, perks, and temptations of high office, regrettable though they may be, and scrutinised though they should be, can ever be completely eliminated in the exercise of temporal power. As Sarojni Naidu once observed wryly, “it takes a lot of money to keep Bapu living in poverty”.

So, to pine, as we do, for leaders of prophet-like moral rectitude, is to live in fantasyland and court disillusionment. In such matters we can do no better than rely on constitutional and legal checks and balances, the threat of political accountability at the bar of the public, and the self imposed, restrained, good sense (if any) of our leaders.

My concern today is a little different. Sure, ‘Nawaz’s folly’ is a boon for the well off, not to mention some of the more humble lot, I included. The convenience of a small segment of the populace is well served. But public expenditure should be governed by priorities, where the principle of ‘the greatest good for the greatest number’ (as a first approximation) is not a bad intuitive guideline. Even if we accept the reality that politics has a large patronage component, should we not at least expect value for money? Would that huge sum of money not been better spent on dozens of other, much needed, projects?

I drive into Islamabad and see major flyover and interchange projects in progress on Kashmir Road and Jinnah Avenue. And, probably, these are not the only road improvement projects being undertaken in the twin cities. When complete, they will all no doubt be greatly welcomed by motorists. However, I could not help thinking whether such projects should have priority over the water supply, sanitation, and drainage requirements of a much larger proportion of residents.

I am not suggesting for a moment that all road development projects should be abandoned until those other basic civic amenities have been provided. My concern is only a more judicious allocation of the available funds, percentage wise, between competing priorities.

For example, massive road projects are also being undertaken in Karachi. Do I, similarly, view those too with a jaundiced eye? Not necessarily. It may well be that the economic benefits of improved traffic flows in our major commercial and industrial city are such as to accord them a higher priority, temporarily. For, such extra returns will make it easier, in due course, to provide those other basic facilities the citizens desperately need.

Now I am not qualified enough to make such delicate politico-economic decisions between closely competing priorities. Leave that to the experts and the technocrats. But no such fine judgement is called for in other, obvious cases, such as the motorway. My lament, backed up by a further few random examples discussed below, is why we cannot make the obviously right call in such latter cases.

Consider the airports in Lahore and Karachi. Every time I pass through them I am gratified to note they are modern and continue to be well maintained. But, can anyone deny that they are massively under-utilised? In mitigation, can one hide behind the argument that they were over-designed to take care of long-term traffic growth?

My answer is two-fold. If the Jinnah terminal remains massively under-used even 15 years after its opening, is it not obvious that someone was guilty of vastly over-estimating future passenger throughput? Secondly, I give you the example of Dubai. Over the thirty-year period I have lived in the Emirate, I have seen its airport gradually improved, enlarged and modernised every few years, in planned steps, to keep pace with future traffic projections. And all this has been carried out around the original airport building, which is still the entry and exit point for most passengers.

And now we are building another such new airport for Islamabad. Then there is the planned Bab-e-Azadi in Lahore. Would monies allocated for that not be better used by, say, WASA, to reduce the misery of Lahore residents following a downpour? And how should we classify that infamous KPT fountain in Karachi? It cost Rs 320 million, but is in-operational because of the mysterious theft of 22 of its essential components. Recently, citing the nation’s current financial crunch, the Army has decided to postpone its plans to build a costly new GHQ for itself. That is good news, but should we be even contemplating such a project?

With such thoughts fresh in the mind, I return to Lahore, and drive straight to the Gymkhana for my golf game. I note that Zafar Ali Road (and the parallel road on the other side of the nullah) has been freshly carpeted, and widened with a third lane. Whether this upgrading (in preference to other possible projects in town) should have been a matter of high priority, I leave it for the citizens to judge. As far as I am concerned, the real traffic problem on this road is caused by motorists blocking the left lane (and often the adjoining one too), by parking their cars when visiting the medical and educational institutions situated there.

But what completely defeats me is the need for those two bridges over the nullah, at either end. For motorists, the prospective savings in distance and time by using the bridges hardly amount to a few hundred yards and a few minutes. Balance that against the real accident hazard they pose (particularly the crossing opposite Beaconhouse National University), as drivers with little road sense, and even less consideration for others, recklessly strive to impose their own will on who has right of way.

The writer is a businessman. A selection of his columns is now available in book form. Visit munirattaullah.com
 

KARACHI (November 12 2008): The government of Japan will invest $872.316 million for the revival of Karachi Circular Railway (KCR) to overcome traffic problems in the metropolis. According to sources, Japan External Trade Organisation (Jetro) commissioned by the ministry of economy, trade and industry, government of Japan would provide 100 percent funding for the project under Japanese STEP loan at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

They said Jetro, as a first parameter, will dualise KCR's 30-km loop with modern signalling and telecommunication system at a cost of $536.852 million. Further, the sources said at least two dedicated tracks along with the main line from City (Railway) Station to Drig Road Station of 14.5 kms, which would later be linked to the airport with a distance of 6-kms, at a cost of $179.464 million.

They said Karachi Urban Transport Corporation (KUTC) would be the vehicle for the implementation of the project having on its Board-Directors the senior officials of Pakistan Railway, Government of Sindh and City District Government Karachi (CDGK).

Currently, the project was under different assessment studies, such as Environmental Impact Assessment (EIA), Special Assistance for Project Formation (Saprof), led by a group of Jetro and would be completed within two to three months, said the sources adding that PC-1 for the project had also been cleared in principle. They said the government f Pakistan and Jetro were likely to sign a loan agreement by May 2009, within three to four years of which the project would be completed.
 
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