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This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision.
Summary of Project Information (SPI)
Project number 11646
Project namePakistan International Container Terminal
CountryPakistan
SectorTransportation And Warehousing
DepartmentInfrastructure
Company namePakistan International Container Terminal
Environmental categoryB
Date SPI disclosedOctober 11, 2002
Projected board dateNovember 19, 2002
StatusActive
Previous EventsInvested: December 16, 2003
Signed: May 17, 2003
Approved: November 20, 2002

Project sponsor and major shareholders of project company
The project sponsors are Premier Mercantile Services Ltd. (PMS) and Hamburg Port. PMS is currently the third largest container terminal operator in Pakistan. PMS handled over 150,000 containers (TEUs) in 2001 from geared and gearless vessels. Hamburg Port is the largest maritime company in Germany. Besides operating in Germany, it also operates container terminals in Argentina, Chile, and Ukraine. Hamburg Port handled 3.1 million containers (TEUs) in 2001.

Total project cost and proposed IFC investment
The total project cost is estimated at $31.8 million. The proposed IFC investment consists of an A loan of $7.75 million and a C loan of $1.5 million.

Location of project and description of site
The proposed container terminal is located at berths 6-9 on the east wharf of the Karachi Port. It has a quay wall of 600 meters and a dedicated container terminal of 22 hectares. Karachi Port is the main Pakistani port, accounting for about 80% of the country’s container traffic. The remaining traffic is handled by Qasim port. The most important hinterland regions of Karachi Port are the city itself and the province of Punjab.

Description of company and purpose of project
PMS will incorporate the project company to manage and operate the container terminal, with Hamburg Port as the other major shareholder. The project involves acquiring container handling equipment (including two quay cranes) and undertaking a civil works program to improve the container yard and build workshops.

The project is expected to improve container handling efficiency and to have a positive developmental impact by lowering transport costs and providing higher service levels for users of the port.

IFC's role in the project is to provide long term financing which is not available in Pakistan, and catalyze interest from other lenders and strategic investors.

Environmental and social issues - Category B
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

To view the environmental documents for this project, click here


Location of environmental documents in locally affected community
Environmental documents in the local effected community will be available at the administrative office of PMS:
2nd Floor, Business Center
Mumtaz Hassan Road
Karachi 74000
Pakistan

To contact the project company, please write to:
Mr. Aasim Siddiqui
Premier Mercantile Services Ltd
2nd FloorBusiness Center
Mumtaz Hassan Road
Karachi 74000
Pakistan