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An airport of their own
By Aoun Sahi

Sialkot is all prepared for the country's first ever private sector airport after having successfully set up the Sambrial Dryport Trust, thanks largely to the exporters of the city.

The export triangle of the country comprising Gujrat, Sialkot and Gujranwala is internationally known for its sports goods, gloves, surgical instruments, sports wear, cutlery, ceramics, leather garments, electrical gadgets etc. Presently air cargo from the area is sent to Lahore, Islamabad or Karachi airports via the Sambrial Dryport. Among the many difficulties that this poses for the exporters are the added expenses and time. Moreover, the road travel from these big cities is an increased security risk for foreign buyers.

It was because of these reasons that the export potential of the region has not been fully realised. That is why there has been a long standing demand for an airport in Gujranwala division, by traders, businessmen, exporters and the general public of the region.

"Exporters of Sialkot have taken the initiative themselves. They have been pleading for an airport with the government for quite a long time, but due to financial constraints the government has failed to oblige. Alternatively, the determined exporters of Sialkot have decided to build an airport on their own," says Mian Muhammad Riaz, chairman Sialkot International Airport Limited (SIAL).

"President Pervez Musharraf gave his approval for the construction of an international airport at Sialkot on Build, Own & Operate (BOO) basis, following a presentation made on February 2, 2001. A memorandum of understanding (MOU) was then signed between the Sialkot Chamber of Commerce and Industry and the Ministry of Defence through the Civil Aviation Authority," adds Mian Riaz.

An independent organisation, Sialkot International Airport Limited (SIAL), was formed for the construction of airport under the auspices of the Sialkot Chamber of Commerce and Industries on 24, March 2001.

The selected site measuring 1004 acres is located 13 kilometers west of Sialkot with road links to Wazirabad, Gujrat, Gujranwala, Narowal, Sialkot city, Sialkot Export Processing Zone and Sialkot Dry Port. The new bridge on Chenab near Shahbazpur would bring the drive to Gujrat down to 25 minutes. After the completion of proposed communication network, it will be the closest airport to cities like Kharian and Mirpur (AJK) -- known for a high percentage of overseas population.

Muhammad Nawaz Chaudhry, General Manager SIAL, gives TNS a breakdown of the funding. "The project is expected to be implemented through 100 per cent equity financing. SIAL is bearing the entire expenditure and will run the airport independently. The government is not providing any kind of monetary or technical assistance for the project. The total estimated cost of the project is Rs. 1.57 billion, out of which Rs. 1 billion would be directly invested by 200 directors with a personal investment of Rs. 5 million each. The remaining 0.57 billion rupees would be collected through issuance of shares." The number of directors is fast approaching the targeted 200 mark, most of whom are from Sialkot, he adds.

Chaudhry Sarfraz Bhatti, member executive committee Sialkot Chamber of Commerce and Industries and chief executive F.S. Candino says that the airport is a unique project in many ways: "Located at the centre of Pakistan's industrial hub, it is a viable private sector initiative. It will bring an end to the long delay, damage to goods or packing due to multiple handling, pilferage, security concerns and other losses. The airport will also be a great convenience for local and foreign business executives and other air-travellers who will be saved long road journeys."

According to Muhammad Nawaz Chaudhry, the viability of the project is greatly enhanced by a number of factors -- it enjoys full backing of the government and each aspect of the airport is in accordance with national and international regulations. The airport plan developed by SIAL with the expertise of NESPAK has been approved by the government and meets international civil aviation organisation standards.

Muhammad Nawaz Chaudhry claims the success of the project as a business venture is guaranteed due to the direct involvement of the private sector. It would profit from the huge cargo market of industries around and will be the first choice for the large number of air travellers from adjoining districts. This would also help create new commercial avenues.

According to figures provided by SIAL, 24,000 ton cargo transportation is expected in the first year. The provision of passenger facilities at Sialkot International Airport would earn a profit of over Rs. 2 billion while cargo handling at the airport would save SIAL over Rs. 1 billion.

"The actual work on the project started on January 30, 2003. The airport master plan envisages phased development of facilities which will be completed in six packages. The highlight of the project remains the 3,600-meter long runway which is the longest in Pakistan. The work on first two packages is under process and bids for the remaining four are in the pipeline," says Major (retd.) Syed Shahid Anwar, project engineer Sialkot International Airport.

He also tells TNS that NESPAK is the residential supervisor of the project with the top-supervision done by SIAL itself. "A laboratory for the attestation of the standard of material has been set up on the site with nuclear gadgets for ensuring the quality of the material. The airport will start operating by April 2005. One area where the government can help is the communication network of the region, which needs to be improved before the airport becomes operational," he adds.

Regarding this suggestion, Zillai Naib Nazim, Chaudhry Arsal Waqar Ghuman says: "The district government has made a master plan to improve the condition of roads before the completion of the airport. The chief minister has also announced a Rs. 2 billion package for Sialkot district, mostly for the improvement of the communication network. The airport will bring a revolution not only in the field of industry, but will also help improve the agriculture of the region, especially by way of quick transportation of fresh fruits, vegetables and flowers etc."


 



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