Pakistan yard to launch Rs3 billion modernisation programme

Official sources said that the ministry of defence has proposed the modernisation and upgradation plan for KS&EW to help fetch business amounting to approximately Rs1.5 billion along with foreign exchange earnings of about $7.28 million annually.

The plan envisages enhancement of existing capacity of ship repair of KS&EW by installation of "Ship lift System" and replacing old and obsolete machines with state-of-the-art new machines as well as upgrade and modernise the existing repair

facilities. The new system will be capable of lifting vessels upto 4,000 tonnes and capability to repair 10 to 13 ships / vessels at a time. At present KS&EW has two dry docks of capacity 26,000 DWT tonnes and 18,000 DWT tons constructed in 1956 and 1970, having average capacity to repair 16 ships per annum, which will be increased to 39 ships per annum in addition to the existing capacity with installation of new ship lift system. The scope of work will include Installation of Ship Lift System, Transfer System, Upgradation of Existing Technology, Marine Civil Works and Procurement of Equipment/Machines.

The Karachi Shipyard and Engineering Works Limited is the only Shipyard in the country, which possesses comprehensive ship repairs infrastructure. Before this facility was set up, Pakistan's ships had to go to Malta for underwater repairs. Since its inception these limited facilities are fully utilised for domestic and foreign large ship repairs. However, these facilities have not been upgraded since their initial installation in 1957. Hence the demand and requirement is much more than the present capacity. Sources said that due to gradual increase in naval, domestic ports and commercial fleet, the existing docks facilities have become inadequate. This has created dual negative effects i.e. ships are not getting repaired in time thus causing degradation to the existing fleet and on the other hand losing business to the tune of Rs1.5 billion per annum.

At present, it is not possible to entertain foreign ship's clientele, although the sea trade at Pakistan ports is increasing at a brisk rate since Pakistan Navy (PN), Pakistan National Shipping Corporation (PNSC), Port Qasim Authority (PQA), Karachi Port Trust (KPT), Gwadar Port and Maritime Security Agency (MSA) have plans to rehabilitate and increase their existing fleets.

The ship owners are forced either to wait for prolonged periods or are constrained to send their ships / vessels to Dubai or elsewhere for repairs. Even the foreign fishing trawlers operating in Pakistani water are forced to go to Dubai/Singapore for dry docking and repairs.

At present location of KS&EW has limitation of depth of water channel. To address this problem, KS&EW will request KPT for allocation of requisite space at the deep draught container terminal and cargo village being planned by KPT. The project for overall revamping of Shipyard costing Rs1.9 billion was first considered by the CDWP in its meeting held on 18th February 2003. The CDWP decided to return the PC-I to the Sponsoring Agency with the direction that they should engage a renowned consultant to undertake a feasibility study to justify rehabilitation of KS&EW.

Although the CDWP has approved the project, it observed that instead of undertaking feasibility study through engaging renowned consultants, the Sponsoring Agency, after more than 5 years (in year 2007) have come up with a PC-I costing Rs3 billion (53 per cent higher than the previous cost) with different nomenclature albeit the scope of work is similar (and lesser) to the BMR Programme of the KSEW.