Talks soon for transferring container terminal to UAE

The government on Monday decided to hold formal negotiations with the UAE’s Abu Dhabi Ports (ADP) for the speedy transfer of the Container Terminal from Karachi Port Trust (KPT). This may be the first commercial transaction for the divestment of public sector assets to friendly countries under a recently enacted law – Inter-Governmental Commercial Transaction Act 2022 – through direct negotiations in a speedy manner without going through the tedious and long-drawn process under the privatisation law. The KPT has already taken over the control of the Container Terminal (Berths 6 to 9 at East Wharf) from Pakistan International Container Terminal (PICT) whose 21-year agreement expired on June 17 and has signed a short-term services contract with the same firm until June 30 to maintain operations without any extra management fee. PICT’s share price in the Pakistan Stock Exchange plunged by a massive 31pc to about Rs91 per share amid lower locks from about Rs132 since the federal government empowered the KPT to take over the terminal on June 12.