Port Qasim to get $25m bulk storage terminal KARACHI: A bulk liquid storage and handling terminal with an estimated investment of $25 million is being built at Port Qasim by Fauji Oil Terminal and Distribution Company (FOTCO) in a joint venture with Trans Group.
Fauji Foundation Managing Director, Lt Gen (retired) Khalid Nawaz Khan and Port Qasim Authority (PQA) Chairman, Agha Jan Akhtar performed the groundbreaking of the Fauji Trans Terminal Limited (FTTL) at Port Qasim on Friday.
The managing director Fauji Foundation said the storage tanks will be directly integrated with the marine oil terminal of FOTCO, which will result in improved operational efficiency and capacity utilisation of both the terminal and the storage.
The FTTL will serve the purpose of long-term storage requirement by the oil industry, especially oil marketing companies that are required to keep a minimum stock of 20 days to ensure adequate fuel supply in the country, he added.
He disclosed that in a recent meeting of Economic Coordination Committee (ECC) of the cabinet it was noted that there was only nine days of petrol stocks in the country which puts the supply chain at a great risk especially given the climate of regional political tensions being faced by Pakistan.
FOTCO Chief Operating Officer, Hasan Sobuctageen said the issue of vessels waiting and incurring high amounts of demurrage is at its peak.
He said recently a vessel loaded with 50,000 tonnes of gas oil had to wait for 37 days at the outer anchorage of Port Qasim before getting berth.
The recent increase in import volumes of petrol has necessitated not only storage facilities for the fuel but essential measures to reduce the turnaround time of oil tankers calling at FOTCO terminal, he stressed.
FTTL would run the oil storage terminal having a designed storage capacity of 280,000 tonnes.
Under phase one, a storage capacity of 108,000 tonnes would be developed and expected to start its operations by early 2018.
The proposed oil terminal is designed to handle all petrol, oil and lubricants (POL) products including motor gasoline, diesel, fuel oil, crude and naphtha.
The terminal will be built strictly following the guidelines of American Institute of Petroleum and National Fire Protection Authority of the United States and will be equipped with full fire fighting systems of international standards.