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Pakistan government plans to set up a coal port

Official sources said that Pakistan Industrial Development Corporation (PIDC) has been assigned the task of arranging the feasibility study for establishing the coal port. Pakistan has a growing need for energy to support its high economic growth rate, which has averaged more than 7 per cent over the last 5 years.

To meet the shortfall in energy projected at more than 5,000 MW by 2010, the Government is promoting the use of coal for power generation and intends to develop local coal deposits and set up infrastructure for import of coal.

The establishment of coal port or terminal will facilitate setting up coal based industries such as power plants, cement and steel manufacturing units in an adjoining industrial zone and supply to other major users of imported coal in the country, sources further said.

The objective of the Feasibility Study is to ascertain potential local demand for imported coal by power, cement, steel plants and other major users; develop master plan and design of coal port/ terminal along with infrastructure and its allied facilities for handling of imported coal in bulk quantity to cater to local demand; identify suitable green-field locations in the coastal area for setting up the project; examine technical, financial and economic viability of the project; propose action plan and strategy to develop and operate the project; and develop master plan of an adjoining industrial estate to house coal based industry.

The study will be carried out in two phases. Under the first phase, an assessment of the annual demand for imported coal over the next fifteen years will be carried out taking into consideration all relevant aspects including the existing demand and supply position of coal; coal imports and its handling facilities; local supply; local coal deposits and projected local supply; and government plans and policies for the development of coal reserves. In addition, the feasibility study will also cover projected demand of imported coal by power plants, cement plants, steel producers and other potential users and growth potential of these sectors over the next 15 years.

The feasibility study will also determine and recommend size and capacity of coal port and identify major components like requirement of land, utilities and major support facilities and for adjoining industrial estate of 5,000 acres for setting up coal-based industry.

The green-field locations identified are Keti Bandar, Khalifa Point and other potential sites in the coastal area for setting up coal port. The study will recommend the best two options based on relevant factors including suitable water depth and other hydrological conditions, availability of land and infrastructure facilities and connectivity to outside transport network, scope for future expansion and closeness to national electric grid station and nearness to urban industrial areas. Moreover, the study will also cover low capital cost, operating and management costs of the port and cost effective handling, storage and transportation of imported coal.

The second phase of the feasibility study will develop master plan and design of the coal port and adjoining industrial zones and its infra-structural facilities covering all components including channel, berth/jetty; off-loading facilities; storage facilities; crushing, blending and other facilities for value addition if indicated by market study.

The coal port/terminal would be required to meet national and international environmental standards which will cover review of present environmental condition around proposed location; identification of possible impacts of the facilities on environment; and proposed mitigation measures and environment monitoring.