20000108

Reconstruction of Oil Termial OP-2

Bulk liquid cargo traffic

to be diverted to OP 1-3

RECORDER REPORT

KARACHI: The Karachi Port Trust has announced that due to reconstruction of Oil Terminal OP-2 all bulk liquid cargo traffic will be diverted to OP-1 and OP-3 from May this year.

At present there three oil terminals at the Karachi Port are handling the entire bulk liquid cargo including petroleum, edible oil, molasses and chemicals. With the de-commissioning of oil Terminal OP-2 the entire import of edible oil and petroleum as well as export of molasses will be handled at two oil terminals OP-1 and OP-3.

The importers of edible oil fear that due to rush of bulk liquid cargo on two oil terminals waiting time for oil tankers will increase and they will have to pay more demurrage for their bulk liquid cargo. The total yearly import of edible oil is one million tonnes.

With the de-commissioning of OP-2 the export of molasses will also suffer and shipments will be delayed. The total export of molasses is about two million tonnes per annum.

The port users have suggested that the KPT should make alternate arrangements for handling of bulk liquid cargo before re-constructing the OP-2. It should either set up a temporary mooring for discharge of liquid cargo or do the construction work in phases so that the liquid cargo handling specially of export of molasses is not suffered.

They said that if the alternate handling arrangements were not made the export and import of bulk liquid would suffer for at least two years because the re-construction of OP-2 will not be completed before that.

The port users pointed out that out of the two existing oil terminals OP-1 were reserved for discharge of only petroleum products which meant that after de-commissioning of OP-2 the entire bulk liquid cargo load would be borne by only one oil terminal which is OP-3.

They urged the KPT management to take the port users specially the importers of edible oil into confidence, about alternate arrangements before the OP-2 was de-commissioned.