BergerWorld: 3rd Quarter 2007

Located along the coast of the Arabian Sea, Karachi (population 18,000,000) is the commercial center and the largest city in Pakistan, serving as a hub for international trade, transport, manufacturing and commerce. When Pakistan gained independence in 1947, Karachi Port handled approximately 1.5 million tons of cargo. Today, the facility accommodates more than 26 million tons of cargo, including nearly 800,000 TEUs of containers.

To accommodate the anticipated growth at Karachi Port, the Berger Group, in association with Engineering Associates, was selected by the Karachi Port Trust to conduct a feasibility study for the development of a modern cargo village in the western backwaters, an area adjacent to the harbor. Cargo villages, also known as Free Trade Zones or Intermodal Distribution Centers, provide constrained ports with the ability to improve cargo handling and expand capacity for containers, storage, processing, customs and other essential functions. The proposed $250 million, 1,303-acre cargo village will include container yards, reefer points, hazardous and general cargo sheds, silos, cold storage, processing plants, truck stands, administration facilities, and road and rail connections. With direct connection to the national highway network through Lyari Expressway and Northern Bypass, as well as the national rail network through Wazir Mansion, the cargo village will alleviate port congestion and facilitate the expeditious passage of cargo.

The Team initially prepared an analysis of current and historic cargo movement and evaluated the demand for trade through Karachi Port, including the composition of the expected cargo (e.g. bulk, break-bulk or containers). The Team then prepared a master plan for the cargo village, including an analysis of facility requirements; an evaluation of alternative development options; the selection of optimal improvements; an assessment of the financial viability for various project components; and the development of detailed cost estimates and construction schedules. Additionally, the Team's master plan included an evaluation of the attractiveness of self-financed Build, Operate and Transfer investments at the facility.