Gwadar: Passco directed to transport wheat under G2G arrangements

(Staff Report):-

The Ministry of National Food Security and Research has directed the Pakistan Agricultural Storage & Services Corporation (Passco) to transport wheat under G2G arrangements from Gwadar Port through the shortest possible routes. 

On March 1, 2023, the Ministry of National Food Security and Research informed the forum that the ECC in its meeting held on July 28, 2022, allowed the remaining import of 0.80 MMTs of wheat through Trading Corporation of Pakistan (TCP) and directed MNFS&R to submit logistic plan of Passco for transportation of imported wheat for consideration of the ECC.

Passco’s storage capacity comprised of 29 silos and 335 godowns having covered storage capacity of 572,482 MTs. The remaining stock was being stored in open Gunjees in scientific ways and procedure.

Passco floated a tender on November 12, 2022, with the relaxation of conditions to facilitate participation of maximum bidders including reduction of performance guarantee from 10 to 8% and submission of earnest money of Rs.650 million for daily lifting of 6,000-6,500 MTs per vessels.

The lowest bid offered by the NLC for Karachi sea ports was Rs. 9,420/MT, whereas for Gwadar sea port it was Rs. 16,457/MT on delivered basis at Passco’s storage destinations, inclusive of all taxes, tolls duties, etc.

Therefore, transport contract was awarded to NLC for making appropriate arrangements for logistics arrangements at the ports. Meanwhile, Passco had made arrangements for jute/pp bags, Gunjees kits, AP tablets, Delta Metherin, and polythene sheets for imported stock.

State Bank of Pakistan, Finance Division, and Federal Board and Revenue (FBR) had been requested to open LCs and early release of jute and polypropylene. The Ministry of National Food Security and Research’s directive to Passco is aimed at ensuring the smooth transportation of imported wheat through G2G arrangements.