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March 28, 2019

Gwadar terminal developer plans IPO for $85 million project

Business

March 28, 2019

Highlights

  • Mega Movers Pakistan is developing Shahdadkot Inland Container Terminal along Gwadar Rato Dero M-8 Motorway
  • SICT will be the country’s largest logistics park to cater to the requirements of Gwadar port
  • There is no container terminal around Gwadar unlike Karachi port and Port Qasim, which have several container terminals

KARACHI: Pakistan’s upcoming biggest logistics park with a container terminal has planned to list the $85 million project on the stocks exchange to capitalise on economic activities in and around the Gwadar port.

Zaheer Barakzai, chairman of logistics provider Mega Movers Pakistan told The News that it is developing Shahdadkot Inland Container Terminal along Gwadar Rato Dero M-8 Motorway. The distance between SICT and Gwadar port is 325 kilometres. The terminal is expected to be ready by the mid of next year and to have an annual turnover of approximately $45 million in the initial years.

“We have evaluated the public listing and our finance team is already working on it,” Barakzai said without disclosing the timeframe and quantum of the offer.

Spread over an area of 60 acres and having a capacity to handle one million twenty-foot equivalent units annually, SICT will be the country’s largest logistics park to cater to the requirements of Gwadar port.

“As activity starts at a port, a container terminal is required for efficient port operations,” Barakzai said. “There is no container terminal around Gwadar unlike Karachi port and Port Qasim, which have several container terminals.”

Shahdadkot Inland Container Terminal is the flagship project of Mega Movers Pakistan, which was announced in 2015 and is presently under construction. “We are working in close coordination and strategic partnership with China Overseas Port Holdings Company.”

Barakzai said SICT will have multiple facilities such as business complex, hotels, motels, warehousing and a dedicated logistics fleet to connect SICT with the Gwadar port. “A fleet of 500 vehicles would transport all the cargo coming to SICT from across Pakistan to Gwadar port and similarly move cargo meant for upcountry transportation from port to SICT.”

Barakzai said once the Gwadar port becomes operational by 2020, much of the load from Karachi port and Port Qasim would switch to Gwadar due to tax holidays and other factors.

Chairman Mega Movers said SICT is also developing a warehousing facility across 10 acres at Gwadar free zone.

SICT Logistics Park would generate around 700 direct and 3,000 indirect employment opportunities. Besides, the people dwelling across Shahdadkot to Khuzdar will also benefit in the form of daily wage jobs.

“Once traffic starts on motorway, there will be a whole lot of business and economic activities,” he added. “It would be a blessing for the people of this area, as there is very limited employment or business activities here at present.”

Motorways and highways bring development and prosperity to surrounding areas. M8 Motorway and SICT will also support livestock and fisheries sectors through enabling speedy transportation.

There will also be requirement for housing facilities and the construction and real estate sector will get a boost. SICT will also be looking into the real estate sector going forward.

As part of corporate social responsibility, SICT will impart trainings related to truck and heavy vehicles to 800 youth a year from Khuzdar, Turbat and Mund as well as facilitate them in obtaining required licences.

“We intend to develop and operate this logistics park on international standard and market it as a professional setup to invite international business for setting up their business as well,” Barakzai said.

“We have also applied with the relevant authorities to develop Shahdadkot special economic zone to attract investment from local and international businesses.”

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