11646 - Pakistan International Container Terminal

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Environmental Review Summary

Project Number

11646

Company Name

PAKISTAN INTERNATIONAL AIRLINES CORPORATION

Date ERS Disclosed

Oct 11, 2002

Country

Pakistan

Region

Middle East

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 20, 2002
Signed : May 17, 2003
Invested : Dec 16, 2003

Sector

Port and Harbor Operations

Industry

other

Department

Gbl Infrastructure & Natural Resources

Project Description

This is a $33.8 million project to set up a common user container terminal on berths 6 – 9 of the Karachi Port on a build, operate and transfer basis under a 21-year Implementation agreement between the Trustees of the Port of Karachi (KPT) and Premier Mercantile Services Private Ltd. signed on June 18, 2002. The project, known as the Pakistan International Container Terminal (PICT), involves mainly acquiring container handling equipment (including two quay cranes) and undertaking a civil works program to improve the container yard and build workshops, as well as to configure the site to its planned operations. The length of the quay is 600 meters, and the fully-developed terminal area will be approximately 220,000 square meters. The terminal infrastructure - water supply, electricity, roads, and communication services -- is already in place.

Karachi Port is the main Pakistani port, accounting for about 80% (650,000 TEU) of the country’s container traffic (850,000 TEU). Currently, there is one dedicated container terminal (operated by Hutchison Port Holdings) that handles 300,000 TEU, while a number of smaller stevedoring companies handle the remaining 350,000 TEU. Qasim Port, situated at about 50 km from Karachi, accounts for the remaining 20% of Pakistan’s container volume (175,000 TEU) and has one dedicated container terminal operated by P&O.

Environmental and Social

PICT has presented plans to address these issues and to demonstrate that the proposed project will, upon implementation of the specific measures described below, comply with applicable Pakistan laws and regulations, and World Bank/IFC policies and guidelines. Detail on how these potential issues are addressed by PICT follows:

Environmental, Health and Safety Management
PICT will assign a full-time safety and environmental officer with responsibility for all safety and environmental matters at the terminal. The role of the Safety and Environment Officer will be clearly defined in the Terminal organizational structure, and will include a detailed written job description. Consistent with its operating agreement with the Port of Karachi (KPT), PICT also will obtain ISO 9000 certification of its quality management system within one year of the agreement’s first completion date. PICT’s quality management system framework will integrate all safety and environmental aspects of the operations.

Maintenance Dredging and Dredge Spoil Disposal
Ongoing maintenance dredging of the approach channel and harbor is the responsibility of KPT, who owns and operates a fleet of dredgers and hopper barges for this purpose. KPT disposes dredge spoil at two designated marine sites in the open sea away from the channel.

Stormwater Management
Stormwater is collected separately from the various operating areas of the terminal with uncontaminated runoff directed to the harbor through four outfalls. Leaking containers are segregated and stored on a platform in a designated area within the container yard provided with containment walls and a collection tank. Material collected in this tank is disposed through an approved, licensed waste disposal contractor.

Oil/Hazardous Materials Storage and Handling
Because of the limited day-to-day maintenance activities conducted at the terminal, only incidental amounts of hazardous materials – paints, solvents, and petroleum lubricants – are stored and handled in the workshop areas. Operated by KPT, truck fueling facilities comprise two underground tanks located within a larger area surrounded by containment walls. There are ship fueling facilities at the terminal. The fuel tank for the terminal standby power generator will be provided with appropriate containment features to prevent spills from being released to the environment by collecting any spilled fuel in a drain tank twice the capacity of the generator fuel tank.

Liquid, Solid and Hazardous Waste Disposal
Sanitary sewage generated by employees is currently partially treated in septic tanks serving various buildings and areas of the terminal prior to eventual discharge to the harbor. Going forward and as a replacement to this arrangement, PICT will install a new sewage pre-treatment facility to treat these wastewaters to levels consistent with Pakistan laws and regulations prior to discharge to the municipal sewerage system. Sludge generated by this new facility will periodically be removed by a licensed waste removal contractor. Oily wastewaters generated from the equipment washing area in the maintenance workshop will be treated in a dedicated oil/water separator. The small amounts of solid and hazardous wastes generated by the workshop along with any oils recovered by the oil/water separator will be collected by a licensed contractor and properly disposed at approved government-operated landfills.

Ship Support Operations
KPT controls and has responsibility for vessel support operations involving bilge and other ship-generated wastewaters and wastes management, and relies on licensed contractors to provide these services to vessels. The ship’s agent arranges for supply of provisions, potable water, fuel with responsible third parties while berthed at the terminal. KPT does not permit vessels to discharge oily bilges, sludges, and water containing oily mixtures into the harbor, and conducts inspections regularly to ensure that vessel operators comply with all laws and regulations.

Handling and Storage of Dangerous Cargoes
PICT stores containers in accordance with IMO conventions to prevent potentially dangerous combinations of goods coming into contact with one another. Customer-identified IMO Dangerous and Hazardous (D&H) containers are transferred to and stored in KPT’s designated D&H Container sheds (located at the east wharf and the west wharf) separated from KCT’s container storage yard. Each having capacities of 2000 tons, KPT’s D&H sheds have separate areas allocated for various categories of dangerous cargo, including appropriately ventilated areas for cargo with the potential to emit vapors. In the event any container is found leaking, trained KPT staff relocate it to a designated area where leaky cargo is removed and properly disposed according to applicable environmental requirements.

Emergency Preparedness and Response
KPT provides port-wide fire-fighting and emergency response services consistent with international maritime conventions (MARPOL 73/78) through its Marine Pollution Control Department (MPCD). Services include harbor oil spill response and clean-up, harbor water quality monitoring, vessel surveillance and inspection, and fire fighting. The equipment which MPCD employs includes specially provisioned ships, skimmers, and oil containment booms. PICT coordinates with KPT for responding to incidents that occur on the terminal property. PICT will develop emergency plans and procedures and acquire the necessary equipment for preventing and combating oil and chemical spills and fires and major accidents during terminal operation, including coordination with KPT fire and spill response brigades. PICT’s emergency response program will include appropriate personnel training in emergency response.

Employee Health and Safety
PICT will develop programs to ensure the health and safety of all employees, including pre-employment and periodic medical evaluations, provision of Personal Protective Equipment (PPE), and regular training in hazards, safe work procedures, and emergency response activities.

Conclusion & Monitoring

IFC will evaluate the project''s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: (i) the status of implementation of any measures described above; and (ii) ongoing performance of project-specific environmental, health and safety activities [as reflected in the results of periodic and quantitative sampling and measuring programs.] Periodic site supervision visits will also be conducted.

This Environmental Review Summary (ERS) is prepared and distributed 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 of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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