vol 3 cold storages and controlled
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PAKISTAN HORTICULTURE
DEVELOPMENT & EXPORT BOARD
PRE-FEASIBILITY STUDY
ESTABLISHMENT OF COLD CHAIN SYSTEM
UNDER
NATIONAL TRADE CORRIDOR IMPROVEMENT PROJECT
VOLUME-III COLD STORAGES AND CONTROLLED ATMOSPHERE
STORAGES
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ESTABLISHMENT OF COLD CHAIN SYSTEM UNDER NATIONAL TRADE
CORRIDOR IMPROVEMENT PROJECT
PREFEASIBI LI TY REPORT
VOLUME-III COLD STORAGE AND CONTROLLED ATMOSPHERE
STORAGE
Table of Content
1- CURRENT STATUS & FUTURE NEEDS 6
1.1 Cold storage (Production Area and Markets) 7
1.2 Cold storage (Airports/Sea ports) 8
2- TYPES OF COLD STORAGE 12
2.1 MEDIUM TEMPERATURE COLD STORES
12
2.2 FROZEN FOOD STORES
12
2.3 CONSTRUCTION PRACTICES
12
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4.1 Factors to be Considered for Site Selection 15
4.2 Size Determination 15
4.3 MECHANICAL OPERATIONS 16
4.4 STRUCTURE AND THERMAL INSULATION 16
4.5 REFRIGERATION LOAD 19
4.6 EFFECT OF HARVEST TEMPERATURE ON
REFRIGERATED STORAGE
21
4.7 Regulations 21
4.8 Civil Work Planning & Design 21
5- ENGINEERING DESIGN 23
5.1 Size and Layout Options 23
5.2 PRODUCE FLOW PATTERNS
24
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6.3 Temperature Control 30
6.4 Sanitation 30
6.5 Maintenance 31
6.6 Storage Facility Loading 31
6.7 Packing Container Design and Positioning 32
6.8 Storage Compatibility 33
7- TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD
STORAGES
34
8- PROPOSED MANAGEMENT STRUCTURE 39
9- COSTING OF PROJECT 40
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13- RECOMMENDATIONS 64
12- IMPLEMENTATION PLAN72
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The country needs to increase and maintain its cold storage capacity from current 6.37%
to around 15% of production, with most of the new storage facilities to be established
close to the production area (nearest market centers) if it is to meet the cold chain needsand to substantially reduce the post-harvest losses.
According to PHDEB sources, Government has approved following new collection
points cum cold storage facilities at Haripur and Butkhela 1200 tons each in NWFP, and
Loralai & Khuzdar 1000 tons each in Balochistan.
1.1 Cold Storage (Production Area and Markets)
Several kinds of fruits and vegetables are cultivated seasonally depending upon locationof land and other climatic conditions. These have to be preserved both at producing
centres as well as consuming centres, and by employing correct storage practices it is
possible to store them for extended period.
In order to assess the immediate needs of fruits and vegetables storage, a comprehensive
survey was done in major markets and production areas, and following cold storages have been proposed (Table III-2) at different locations to meet the requirement. The proposed
cold storages are listed in Table III-2 and illustrated in Fig III-1 These cold stores are inaddition to existing cold store facilities with the pack houses to store the fruits.
Table III-2: Proposed Cold Stores*
Province City/Area Requirement Capacity (Tons) Commodity*
Punjab
Sargodha
(Production Area) 1 CS 3000 (6 X 500) Kinnow
Sargodha (F&V MKT) 1 CS 1500 (3 X 500) Fruits and vegetables
Kot Momin 1 CS 5000 (10 X 500) Kinnow
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1.2 Cold Storage (Airports/Seaports)
Currently, there is no cold storage facility at any of the port. In order to maintain the coldchain, cold storage facilities are required at all international airports and seaports. The
cold storage requirement at various airports and seaports were assessed and finalized in
consultation with the industry. The proposed cold storages are listed in Table III-3 and
illustrated in Fig III-2
Table III-3-- Proposed Cold Stores Requirement at Airports and Seaports
AirPorts/Sea
Ports
Capacity ColdStore + Freezer
Unit (Tons)
Products Remarks
Karachi 500 (5 x 100) Fruits and vegetables,meat, frozen food &
pharma products. ----
Lahore 300 (3 x 100) Extendable to 500Faisalabad 200 (2 x 100) Extendable to 300
Multan 200 (2 x 100) Extendable to 300
Quetta 200 (2 x 100) Extendable to 300
Peshawar 200 (2 x 100) Extendable to 300
Islamabad 200 (2 x 100) Extendable to 300
Sea Ports
PortQasim,Karachi
5000 (10 x 500)----
Karachi 5000 (10 x 500)
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Kinnow, Apple, Potato
CAS (1)
Apple, Peach, Potato
CAS (1)
F & V
CS (2)
F & V
CS (1)
Apple, F & V
CAS (1) Kinnow, F & V
CS (2)
Kinnow
CS (1)
Apple, Peach
CAS (1) `
Apple
CAS (1)
Kot Momin
Muzaffargar
RY. Khan
Chitral
Wana
Zhob
KilaSaifullah
Lora Lai
Chaman
Sargodha
Waziristan
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EH + CS (Airport)
CS (Airport)
CS (Airport)
CS (Airport)
CS (Airport)
CS (Airport)
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Table III-4: Recommendations of CA or MA Conditions During Storage and/or
Transport of Selected Fruits and Vegetables
Commodity
Temperature
Range* (°C) CA †
%O2 %CO2
Fruits
Apple 0-5 1-2 0-3
Apricot 0-5 2-3 2-3
Grapes 0-5 2-5 1-3Grapefruit 10-15 3-10 5-10
Lemon 10-15 5-10 0-10
Lime 10-15 5-10 0-10
Mango 10-15 3-7 5-8
Orange 5-10 5-10 0-5
Peach 0-5 1-2 3-5
Pear, Asian 0-5 2-4 0-3
Pear, European 0-5 1-3 0-3Plum 0-5 1-2 0-5
Vegetables
Onion Mature Bulb (Dry) 0-5 1-2 0-10
Tomatoes (Green) 12-20 3-5 2-3
Tomatoes (Ripe) 10-15 3-5 3-5
Potato 7 - -
Mandarin/Tangerine 4-7 - -
Notes:
* Usual or recommended range; a relative humidity of 90-95% is recommended.
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Kader, A. 2002. Postharvest Technology of Horticultural Crops (3
rd
edition). Univ. of California2- TYPES OF COLD STORAGE
Temperature-wise there are two types of cold stores used for different applications:
2.1 Medium Temperature Cold Stores
These are generally designed for storing a variety of products at 0 to 8 deg C.
Commodities include various types of fresh fruits and vegetables, dry fruits, spices, pulses, milk products etc. Most cold stores in Punjab, Sindh & NWFP are designed for
single commodity storage such as potatoes. Units in Punjab and parts of Sindh are of
multipurpose type designed for storage of various commodities. The occupancy levels in
the multi commodity stores are much better than those used for single commoditystorage. However, the chambers in multi commodity stores have to be designed for
maintaining different temperatures and sometimes relative humidities to suit different
products.
Construction practices vary largely, in different parts of the country depending on the
type of usage. The bulk commodity stores have chambers of large sizes whereas the
multi-purpose units have many chambers of smaller sizes to suit the customer needs.These medium temperature cold stores are generally constructed with 2 to 6 levels. The
capacity range is from 500 M.T. to 10,000 M.T. or more. However, in case of cold stores
with pre-cooling facility the capacities are much smaller and the units are designed withsingle floor construction.
2.2 Frozen Food Stores
Frozen food stores are, normally, a part of a food processing and freezing complex.
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2.4 Thermal Insulation
In some old units cheaper material like rice husk was used as the thermal insulation.
Although the insulation itself is very cheap it necessitated very large wall thicknesses and
also caused many maintenance problems.
For over three decades now the better designed cold stores have been insulated withmaterials like Expanded Polystyrene, Fiberglass or Polyurethane. Whereas the insulation
on walls and ceilings is finished with cement sand plaster in conventional cold stores, the
latest trend is to use sheet metal cladding. The cladding materials are aluminium sheet or pre-coated galvanized steel sheet.
A vapour barrier is provided in all cases to arrest moisture migration to the cold store.
Barrier material (such as steel, aluminum, reinforced plastic sheets, metal foils, mastic
type hot or cold application paints) is provided on the warmer side of the insulation.
2.5 Prefab insulated panel structure
The development of pre-insulated panels has brought in a revolution in cold storage
construction the world over. These panels have been in use for cold storage constructionfor over two decades in the developed countries. Modern prefab panels have been
introduced around 10 years back. Prefab panels, also called sandwich panels, are mainly
available in two types:
EPS panels with expanded polystyrene insulation bonded to sheet metal skins by
using a special adhesive.
PUF panels using polyurethane as insulation material foamed between two metalki Th l t t ll t d h b tt i l ti l
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3- SITE SELECTION
The type of cold storage depends on the desired function. The primary function of the
facility determines the location.
For example, for retail sales, location of the cold storage must be near a major road, and
the area must have adequate parking space.
If the facility is mainly to store produce prior to shipping, it should be close to the
grading and packing room with convenient access to fields or orchards. Also, there must
be space available for movement and storage of empty containers, equipment, andsupplies.
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4- DESIGN BASIS & TECHNICAL SPECIFICATIONS
4.1 FACTORS TO BE CONSIDERED FOR SITE SELECTION
The following factors are required to be considered for selecting an appropriate site for
cold store.
A cold storage facility must be in a well-drained area. It requires drains to remove
water from condensation, and cleaning and sanitation operations. Providing good
drainage is essential.
Availability of water Availability of Electricity
Three phase of electricity is necessary when more than 10 tons of refrigeration is
needed.
Wastewater disposal facility
Appropriate sewage collection and disposal system must be considered.
If any of above facility is not available the arrangement for the same must be done prior
to construction of cold store.
4.2 SIZE DETERMINATION
To define the size of the refrigerated storage, the following factors are required to be
evaluated.
Volume of product to store.
Produce containers (pallet bins, boxes, bulk).
Volume required per container (ft3/container).
Aisle space needed (mechanical or manual operation).
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S = the maximum number of containers to be stored at one time.
The volume (V) obtained from the above formula does not include space for air
circulation, aisles and walkways. An additional 40 percent of the volume is used instacking, spacing, and air circulation. As a rule of thumb, 25 percent of the floor area is
devoted to aisles and walkways.
4.3 Mechanical Operation
The aisles should be at least 1½ times the width of the forklift. For air circulation, allow
6 – 8 inches of space between containers and walls, at least 18 inches between containers
and the ceiling. Also, allow enough space to spread the produce for rapid cooling.
The space available at the site for cold storage might be the major constraint in
determining its size. In this case, special attention should be paid to operating needs of
the facility during peak storage demand.
The number of doors in a cold storage room should be minimal, without compromising
the operations. Every time a door is opened, cold air leaves the storage and warm aircomes in. The doors should provide a good seal and must have the same insulation aswalls. They should be weather-stripped to reduce warm air infiltration, have adequate
gaskets to provide a good seal, have good quality hinges and latches, and should open
from both inside and outside. In medium and large sized facilities, plastic strip curtainsare recommended to prevent heat gain during loading and unloading operations.
The size of the doors corresponds to the type of operations mechanized or manual. If a
forklift is used, the door width must be at least 1½ times the forklift width.
4.4 Structure and Thermal Insulation
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Nonetheless, sprayed-on and foam-in-place materials provide good seals and reduce labor
and material costs because they are relatively easy to apply, do not require interior panel,
and reduce the wall or ceiling thickness. Insulation is good as long as it is dry. To preventcondensation, install a vapor barrier on the “warm side” of insulation in the walls, ceiling
and floor.
A storage facility must have the means to circulate air above the unit. This will preventhot air in the summer from overloading refrigeration equipment. If the cold storage
facility is under the same roof as the packing area, the packing area does not need as
much insulation. The minimum insulation requirements for a small cold storage room for
fruits and vegetables, located in a warehouse or sheltered area are R-10 for the floor, R-20 for walls and R-30 for the ceiling. The larger the R-value the lesser the heat absorbed
and lower the refrigeration requirements. Insulation values for selected building materials
is given in Table III-5.
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Table III-5: Insulation values for selected building materials R-value
Material
R-value
Per-inch (Approximate) For thickness listed
Batt and Blanket insulationGlass or mineral wool, fiberglass
3.00 – 3.80*
Fill-type insulationCelluloseGlass or mineral wool
VermiculiteShavings or sawdustHay or straw, 20"
3.13 – 3.702.50 – 3.00
2.202.22
30+
Rigid insulation
Exp. polystyrene,Extruded, plain
Molded Beads
Expanded rubber
5.00
5.00
4.55
Expanded polyurethane, aged
Glass fiber
Wood or cane fiberboardPolyisocyanurate
6.25
4.00
2.507.04
Foam-in-place insulationPolyurethane 6.00
Building materials
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4.5 Refrigeration Load
The most common unit used to quantify refrigeration load is the refrigeration ton. Oneton of refrigeration is defined as the energy removed from one ton (2,000 pounds) of
water so it freezes in 24 hours. It is equivalent to 288,000 Btu in one day or 12,000 Btu per hour.
To maintain the optimum temperature inside a cold storage facility, the system must have
a properly designed refrigeration load. Determining the refrigeration load requiresquantifying field heat and heat of respiration of the produce, conductive heat gain,
convective heat gain, equipment load, and service and defrosts factors of the facility.
Field Heat. Field heat is the amount of cooling necessary to reduce the produce from
harvest temperature to the safe storage temperature within a given time period; the hotter
the produce coming into the cold storage facility, the more energy needed to reduce the
temperature, and the more time required to operate the equipment.
Heat of Respiration.The heat of respiration is the energy released by the produce as it
respires during storage. The warmer the produce, the more heat of respiration generated.
Conductive Heat Gain. The conductive heat gain is heat gained by conduction through
the building floor, walls, and ceiling. It is directly related to the insulation installed in the
facility. The better insulated the cold storage facility, the less conductive heat gain.
Convective Heat Gain. The convective heat gain is heat that enters the facility during
the mixing of outside air with the cool inside environment. This load is directly related tothe number of doors in the facility. The more doors in the facility, the higher the
possibility of air currents. The amount of heat gained increases with the amount of times
and periods that doors are open.
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The position of the evaporator coil fans should provide air flow to the end of the longest
side of the facility. If using additional fans to pre-cool produce, they should be properly
located, and the refrigeration equipment should accommodate that purpose. When forcedair is used to pre-cool produce, the cooling time could be reduced by 80 percent.
The most common refrigeration systems for cold storage facilities are the direct
expansion system and the flooded system. Most small storage units work with the directexpansion system; the flooded system is used only in large facilities.
FIGURES III-5 AND III-6 SHOW SCHEMATIC DIAGRAMS OF
THE DIRECT EXPANSION AND THE FLOODED SYSTEMRESPECTIVELY.
Ph
Condenser
Heat Output
Liquid
receiver
Expansion
valve
Evaporator
Heatinput
Compressor
Energy
V
VV
L
V = vapourL = liquidPh = high pressure
Pl = low pressure
Pl
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4.6 Effect of Harvest Temperature on Refrigerated Storage
A SAMPLE REFRIGERATION LOAD CALCULATION FOR TWODIFFERENT PRODUCE (300 TONS OF TOMATOES AND 380 TONS
OF GRAPES) ARE REPRODUCED HEREUNDER IN TABLE III-6.
The tomatoes are stored at 13 °C and the grapes are stored at 0 °C. A 13 °C difference in
the harvest temperature of the tomatoes indicates an extra load requirement of 3.0 tons of
refrigeration for those harvested at 270C. A 12 °C difference in the harvest temperature
for the grapes demands 6.5 more tons of refrigeration to cool down and maintain the
grapes.
Therefore, it is recommended to harvest the produce in morning hours while the
temperature is lower.4.7 REGULATIONS
The cold store designer must be acquainted with the applicable laws regulations
Tomatoes Grapes
Harvest Temperature (°C) 27 21 26 14
Storage Temperature (°C) 13 13 0 0
Storage Capacity (ton) 300 300 380 380
Harvest Rate Per Day (ton) 30 30 38 38
Refrigeration Load (ton) 16.5 13.5 18.0 11.5
Table III-6: Cooling Load for Alternative Harvesting Temperatures
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The next element is the height of cold store floor from ground level. This must always be
carefully evaluated so that the height is enough to properly dock reefer trucks as well as
the distribution vans. The minimum height of the cold store floor from natural groundlevel (N.G.L) should at least be equal to the height of the refrigerated container floor of
primary distribution truck from N.G.L plus six inches.
The level of ramps in front of the loading/unloading doors should be carefully worked outaccording to the vehicles that are planned to be used.
Above a certain width of cold store in panel construction, its roof panels need to be
supported either from below (pillars) or from top (hung by tie rods from the shed trusses).Generally, it is undesirable to have pillars inside the cold store. The roof panels are
therefore normally hung from the shed trusses slab. The shed on top of the cold store is
therefore designed with a view to have enough strength to take the load of roof panels.Secondly, in most cases, the evaporators are also hung from the shed trusses. Hence,
provision for their load should also be kept in the design. The weight of roof panels and
the evaporators can always be acquired from the supplier for onward communication tothe shed designer. In view of this it is recommended to have the shed design sent to the
cold store supplier for comments with regard to provisions required for roof panels andevaporators.
Another point to keep in mind is, that in case of panel joints on the cold store roofwater will always seep through if allowed to stand on the roof. This is extremely
undesirable and may even damage the panels in some cases. This normally
happens in rainy seasons. To avoid this, it is possible to attach vertical sheetaround the periphery of the shed hanging down enough so as to ensure that the
rainwater does not reach on top of the roof keeping in mind the wind factor.
Electrical distribution boards and plugging points for the refrigerated vehicle
charging area will also be designed
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5- ENGINEERING DESIGN
5.1 SIZE AND LAYOUT OPTIONS
Cooling of produce can be accomplished in three-ways as shown in Fig III-7.
Option 1: Provide two storages; one for forced-air cooling hot produce, with the otherstorage to hold cold produce after cooling;
Option 2: Provide one storage where hot produce is forced-air cooled in one area, whilecold produce is held in another area of the same storage;
Option 3: Provide one storage where hot produce is room cooled in one area, while cold
produce is held in another area of the same storage.
Fig III-7 Plan view of three storage layout options
Option 2
Option 1
Option 3Forced Air Cooling
Storage Air Holding
Storage
Forced – Air Cooling Area
Holding Area
Room Cooling AreaHolding Storage Area
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Option 3 is least preferred, but is also the least expensive one to build since it has the
least floor area. Because no forced-air cooling is used, produce containers must be ventedvery well, and high airflows are needed from the evaporator fans. Unfortunately, cooling
rates may be unacceptably slow using this method.
5.2 Produce Flow Patterns
The flow of produce into and out of a refrigerated storage and related areas should bekept in one direction if possible. Produce should be arranged to allow a first-in, first-out
policy. To acquire optimum cooling typical plan view of produce flow pattern is given in
Fig III-8.
Fig III-8. Plan view of produce flow pattern
Exterior hinged or sliding doors are expensive, but two or more may be necessary on
walls parallel to the room airflow direction. They should line up with aisles inside the
Evaporator Coils & Air Flow
Direction0.2m (8”) Minimum Space on Walls Parallel to
Airflow
0.3m (12”) Minimum Space on Wall
Perpendicular to Airflow
0.1m (4”) Minimum Space between Pallets or Rocks
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5.3 Airflow Patterns
Good airflow in storage is almost as important as having enough refrigeration capacity. Across sectional view of a storage facility showing airflow pattern is given III-9.
Ceiling-mounted evaporator coils with high-capacity fans will direct cold air across theceiling a distance of at least 15 m (50 ft), providing there are no obstructions. Leave at
least 0.5 m (1.5 ft) of space between the top of the pallets or racks of produce and the
ceiling to allow unrestricted air passage to the back of the room. In storages kept at or
near 0°C, the air coming off the evaporator coils will likely be below 0°C. The spaceabove the produce helps temper this air, and prevent produce from freezing.
Produce should be spaced at least 0.3 m (12") from walls downstream and upstream of
the evaporator coils. This layout will allow the cooled air from the evaporators to passdown the wall, around the produce, and finally back to the coils. Leave at least a 0.2 m
(8") air-gap on walls parallel to the room airflow. Air along the walls is often warmer,and the walls may need protection from forklift abuse.
Fig III-9. Cross-sectional view of a storage showing airflow patterns
In rooms where both hot and cold produce are stored together, the hot produce should be
placed under the evaporator coils with cold produce placed near the downstream part of
Warmed Air
WALL0.3m (12”) Minimum
Ceiling
Cold Air
0.5m (18”) Minimum Evaporator Coils
Pallet or
Rack
Floor
0.1m (4”) Minimu
m S ace
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forced-air rapid cooling of freshly picked hot product, and the other used for cold packed
product.
Most storages have walls between 2.4 m to 4.8 m (8' to 16') high. Low walls under 2.4 m
(8') restrict airflow, future changes in stacking arrangements, and other uses during the
off-season, and should not be used. In general, making the walls a little higher doesn't
cost that much more, and it barely affects the refrigeration needs from the standpoint ofmore heat gain due to more wall surface area. For instance, increasing the wall height
from 2.4 m to 3.6 m (8' to 12') in storage with a floor area of 90 m2 (1000 ft
2) represents a
50% increase in wall height. However, the increased construction and refrigeration costs
would likely rise only about 15%.
For similar volumes of produce stored, it is usually less expensive to stack produce
higher than to spread it out on the floor. That is, for containers that allow stacking oneach other, the floor area and construction costs are reduced. Stacking higher is not
always possible for some containers, and forklift capital and operating costs increase with
lifting height requirements. In some cases, steel shelving racks can be installed toaccommodate pallets that will not stack. Figure III-10 shows three holding storage sizes
that will each accommodate 192 bulk bins, 1.2 m x 1.0 m x 0.6 m (48" x 40" x 24"), for produce such as Orange & Mango.
A= 32’ x 40’ x 10’ height
Floor Area of 1280 ft2
48 Bins / Layers x 4=192 Bins
B= 32’ x 32’ x 13’ height
Floor Area of 1024 ft2
31 Bins / Layers x 6=192 Bins
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5.4 Refrigeration System
The refrigeration system in a cold storage is usually a vapor compression systemcomprising the compressor, condenser, receiver, air-cooling units and associate pipingand controls.
In smaller cold rooms and walk-ins the practice is to use air-cooled condensing units withseal, semi-sealed or open type compressors. In the light of the CFC phase out the trend
now is to use HCFC-22, HFC-134a or other substitute refrigerants.
In the medium and large sized units say 500 M.T and larger capacities, the practice is touse a central plant with ammonia as the refrigerant. It is estimated that almost 95% of the
large cold store units in Pakistan have ammonia refrigeration systems. Needless to say,
that ammonia has proved itself as an economical and reliable refrigerant, especially, inthe industrial refrigeration field including cold stores.
Modular HCFC-22/HFC units, which are compact, light weight and easy to maintain are
being used in medium and large sized units with pre-fab insulated panels. However, theselection of the system and the refrigerant is a matter of designer's choice for a particular
application.
Reciprocating compressors of slow speed type have been used on a large number of cold
store units in the past. The medium speed reciprocating compressors with speeds ranging
from 750 to 1450RPM, with a better energy efficiency and built-in capacity control have been installed in most of the recent units.
For very large cold stores and frozen food stores, screw compressors are being preferred.
Screw compressors have very few moving parts and offer advantage of steeples capacitycontrol in the range of 10 to 100%.
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the top floor with conventional ceiling fans used for air circulation over the coils. These
units occupy large volumes in the cold store, carry large quantities of ammonia and have
a very inefficient cooling performance. In cold stores constructed later, floor mounted air-cooling units with prime surface coils and sheet metal air distribution ducting have been
used (Refer Fig.III-11). Finned coils have also been used in these units in some cases.
However, the recent trend is to use ceiling mounted units with finned coils and axial flow
Fig III-11. Section through a typical multi floor bulk cold store
with floor mounted A.C unit with ducting
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6- COLD STORE OPERATION
Any fruit and vegetable storage facility must operate reliably. Equipment maintenance,monitoring and management are integral parts of all the activities. More specifically, the
aspects that need special attention when managing a cold storage system are:
Condensation and humidity control
Temperature control
Sanitation
Maintenance
Container design and positioning
Storage compatibility of commodities
6.1 Condensation And Humidity Control
The relative humidity in refrigerated storage must be within the optimum range for the
commodity. For most fruits and vegetables, the optimum relative humidity is 90 – 95 percent. When relative humidity inside the refrigerated storage is less than 90 percent, the
facility should use a humidifier. The relative humidity of the storage can be monitored
with a recording hygrometer or at intervals with a sling psychrometer.
6.2 TEMPERATURE
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time to maintain the temperature in the refrigerated storage, consuming more electricity
and reducing the lifetime of the refrigeration unit. Some of the ways to eliminate ice
accumulations on the coils are electrical defrost, warm water sprays, reverse refrigerantflow, and equipment shutdown for 6 – 8 hours. The selection of one of these depends on
the equipment and facility size.
6.3 TEMPERATURE CONTROL
A thermostat is important in the refrigerated facility. The thermostat controls the
operation of the refrigeration unit so a desired temperature can be maintained in the
storage. The thermostat’s thermometer should not be used to monitor the storagetemperature. A separate recording thermometer should be installed for this purpose. This
type thermometer will be helpful in determining whether storage facilities are
maintaining ideal conditions.
A thermometer that fixes the maximum and minimum is necessary to check the pulp
temperature of the produce. A comparison of the produce pulp temperature, the amountof time the produce has been in storage, and the thermostat setting can indicate to the
operator if the thermostat needs resetting or the equipment needs adjusting. Therefrigerated facility should be equipped with more than one thermometer so they can be
compared and recalibrated if necessary. To prevent under cooling or chill injury to the produce, and the resulting economic losses, readings of a sling psychrometer and settings
of the thermostat and humidistat must be compared. These thermometers, however,
indicate the air temperature in the facility and not the produce temperature. The mostimportant temperature to control is the produce temperature. For this reason, it is
necessary to check the pulp temperature of the produce. A comparison of the produce
pulp temperature, the amount of time the produce has been in storage, and the thermostatsetting can indicate to the operator if the thermostat needs resetting or the equipmentneeds adjusting. The refrigerated facility should be equipped with more than one
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cleaning should be done more often, and handling practices should be changed to ensure
a cleaner workplace.
6.5 MAINTENANCE
Refrigerated storage for produce calls for regular inspection of refrigeration coils, fans,
motors, compressor, ducts, doors, locks and hinges, lights, and any other equipment.When inspecting the refrigeration coils, all dust and dirt must be removed. Adjustments
should be made so there are no parts touching the fans or other moving elements. Belts
should have protective covers at all times; if a cover is not good, it must be fixed, but not
removed. Any unusual noise must be inspected and repaired. The oil level in thecompressor must be checked, changed, and maintained. Doors’ or seals must be checked
to prevent air infiltration if any.
6.6 STORAGE FACILITY LOADING
Following factors determine how produce should be loaded into storage:
Period of storage
Maturity of ripeness at harvest
Packing type
Produced are pre-cooled or not
The size and shape of the storage facility
Mechanical or manual loading
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6.7 PACKING CONTAINER DESIGN AND POSITIONING
The packing container design and its positioning in the refrigerated storage facilities must
allow for air circulation within containers and around produce. Containers should not
obstruct air circulation. There should be 6 – 8 inches space between the containers and the
walls, and at least 18 inches between containers and the ceiling. Guidelines painted on thefloor and walls are helpful in getting containers and pallets spaced correctly.
The cold air must move freely not only around the containers but also around the
produce. For that reason, produce containers should have from 5 – 8 percent of the lateralarea open (perforated), and 3 – 5 percent of the bottom area open. A properly designed
container should be structurally sound and allow air circulation for the produce within the
containers. General stacking pattern for produce is shown in Figure III-12.
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6.8 STORAGE COMPATIBILITY
Precaution is necessary when storing different types of produce together. Warm-season produce needs temperatures of 7°C – 13°C and will suffer chilling injury if stored at
temperatures best for cool season produce (0°C – 2.5°C). If cool-season produce is stored
at higher temperatures, its storage life are shortened Commodities that are ethylene
sensitive should not be mixed with ethylene producing ones.
Good management of storage facility operations is important to make it efficient and
profitable. It is good to keep in mind that produce quality cannot be improved; it can only
be maintained.
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7- TYPICAL LAYOUT OF VARIOUS CAPACITIES COLD STORAGES
Typical layout plans for 1000 ton and 500 ton storages are developed for providing guideline for area calculation and space utilization for pallets and are enclosed as Figure III-13
& III-14. However the dimension of cold storages can only be designed on the basis of
available land.
Based on the cold storages requirement at airports (Refer Table # III-2) the typical layout
plans are prepared. Fig # III-15 indicates the layout for Karachi & Lahore Airport
facilities and Figure # III-16 indicates the layout for other airports. Enough land for
container movement is included for costing of land required for airports’ facilities.
Since the seaports need 5000 ton cold storage which will be multiple of 500 ton capacity
and allied facilities.
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3 M
5 M
12 M
10.2 M
Processing Hall
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8- PROPOSED MANAGEMENT STRUCTURE
Fig # III-17. Management Structure
General Manager
(Cold Storage)
Quality Control
Officer Manager Finance &
Manager
Operation &
Maintenance Engineer
Technicians
Labours
Office Staff
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9- COSTING OF PROJECT
A detailed area calculation for both covered and external areas are prepared along with
the land requirement for various capacities cold storages are prepared and enclosed as
Table III-7.
Table III-7: Area Calculation for Cold Store Facilities
Sr # Description
5000 T 3,000 T 2,000 T 1,500 T 1,000 T 500 T 250 T
CS CS CS CS CS CS CS
I. R.C.C Structure Covered Area (Sq.M)
Cold Storage5475 x
(5x1095)
3285
(3x1095)
2190
(2x1095)
1869
(2x623)
1620
(4x405)603 405
Plant Room 150 150 93 93 93 93 93
Plant Room Office 30 30 30 30 30 30 30
Laboratory 16 16 16 16 16 16 16
Worker Sitting Room 60 60 42 42 42 42 42
Wash Rooms 60 60 42 42 42 42 42
Cold Storage Office 150 150 150 150 150 150 150
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TABLE III-9: 1 CS (1,500 TONS) AT SARGODHA F & V MARKET FOR FRUITS & VEGETABLES
Sr.#
Description Unit Unit Price Amount Total AmountPak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average2,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 35,791,200
Cost of Boundary Wall @ Rs. 5900 / M 2,124,000 37,915,200
3 Plant & Machinery
Cost of Refrigeration Equipment, 4,000,000
Racking System 4 High 1,800,000
Handling Equipment including Double ReachForklift, Hand Pallets & Safety Equipment 4,000,000
Standby Generator 2,000,000 11,800,000
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TABLE III-10: 1 CS (5,000 TONS) AT KOT MOMIN FOR KINNOW
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Standby Generator 4,000,000 22,000,000
4Import Expenses including Clearing Charges
& Duties (15%)3,300,000
5 Erection / Instalation (8%) 1,760,000
6 Utilities Connections 3,000,000
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TABLE III-11: 1 CAS (5,000 TONS) AT ISLAMABAD (SECTOR I-9) FOR KINNOW, APPLE, POTATO
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Ethyelyne Scrubber/Humidity 150,000
Standby Generator 4,000,000 22,150,000
4Import Expenses including Clearing Charges
& Duties (15%)3,322,500
5 Erection / Instalation (8%) 1,772,000
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TABLE III-12: 1 CAS (5,000 TONS) AT PESHAWAR FOR PEACH, APPLE, POTATO
Sr.#
Description Unit Unit Price Amount Total AmountPak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including Double ReachForklift, Hand Pallets & Safety Equipment 4,000,000
Ethyelyne Scrubber/Humidity 150,000
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TABLE III-13: 1 CAS (2,000 TONS) AT MARDAN FOR PEACH AND APPLE
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1 Cost of Land @ 1,000,000 per acre at anAverage
2,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 39,258,009
Cost of Boundary Wall @ Rs. 5900 / M 2,124,000 41,382,009
3 Plant & Machinery
Cost of Refrigeration Equipment, 6,000,000
Racking System 4 High 2,400,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Ethyelyne Scrubber/Humidity 150,000
Standby Generator 2,500,000 15,050,000
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TABLE III-14: 1 CAS (2,000 TONS) AT WAZIRISTAN FOR APPLE
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average2,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 39,258,009
Cost of Boundary Wall @ Rs. 5900 / M 2,124,000 41,382,009
3 Plant & Machinery
Cost of Refrigeration Equipment, 6,000,000
Racking System 4 High 2,400,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Ethyelyne Scrubber/Humidity 150,000
Standby Generator 2,500,000 15,050,000
4Import Expenses including Clearing Charges
& Duties (15%)2,257,500
5 Erection / Instalation (8%) 1,204,000
6 Utilities Connections 3 000 000
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TABLE III-15: 1 CS (1,000 TONS) AT CHITRAL FOR FRUITS & VEGETABLES
Sr.
# Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average1,750,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 33,102,009
Cost of Boundary Wall @ Rs. 5900 / M 1,988,300 35,090,309
3 Plant & Machinery
Cost of Refrigeration Equipment, 4,000,000
Racking System 4 High 1,200,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment
4,000,000
Standby Generator 1,500,000 10,700,000
4Import Expenses including Clearing Charges
& Duties (15%)1,605,000
5 Erection / Instalation (8%) 856,000
6 Utilities Connections 1,725,000
7 Pre-operating Expenses (5%) 2,586,315
9 C lti Ch (7%) 3 801 884
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TABLE III-16: 1 CS (1,000 TONS) AT CHAMAN FOR FRUITS & VEGETABLES
Sr.
#
DescriptionUnit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average1,750,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 33,102,009
Cost of Boundary Wall @ Rs. 5900 / M 1,988,300 35,090,309
3 Plant & Machinery
Cost of Refrigeration Equipment, 4,000,000
Racking System 4 High 1,200,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Standby Generator 1,500,000 10,700,000
4Import Expenses including Clearing Charges
1 605 000
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TABLE III-24: TOTAL PROJECT COST
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Total Cost of Land @ 1,000,000 per acre at anAverage\ 46,000,000
2 Total Building1,013,128,636
3 Total Plant & Machinery338,994,000
4Total Import Expenses including Clearing
Charges & Duties (15%) 50,849,100
5 Total Erection / Instalation (8%)27,119,520
6 Total Utilities Connections54,850,000
7 Total Pre-operating Expenses (5%)76,547,061
8 Furniture/Fixture6,900,000
9 Vehicles
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TABLE III-17: 1 CAS (5,000 TONS) AT QUETTA FOR APPLE
Sr.
# Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1 Cost of Land @ 3,000,000 per acre 3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including double reach
fork lift, hand pallets and safety equipments
4,000,000
Ethelyne Scrabber / Humidity Controller 150,000
Standby Generator 4,000,000 22,150,000
4Import Expenses including Clearing Charges
& Duties (15%)3,322,500
5 Erection / Instalation (8%) 1,772,000
6 Utilities Connections 3,000,000
7 P ti E (5%) 5 596 865
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TABLE III-18: 1 CS (5,000 TONS) AT TURBAT FOR DATES & OTHER FRUITS
Sr.
#
DescriptionUnit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Standby Generator 4,000,000 22,000,000
4Import Expenses including Clearing Charges
3 300 000
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TABLE III-19: 1 CS (5,000 TONS) AT KHAIRPUR FOR DATES
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 76,096,800
Cost of Boundary Wall @ Rs. 5900 / M 2,596,000 78,692,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 8,000,000
Racking System 4 High 6,000,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Standby Generator 4,000,000 22,000,000
4Import Expenses including Clearing Charges
& Duties (15%) 3,300,000
5 Erection / Instalation (8%) 1,760,000
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TABLE III-20: 1 CS (3000 TONS) AT SUKKUR FOR DATES & OTHER FRUITS
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 1,000,000 per acre at an
Average2,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 41,644,800
Cost of Boundary Wall @ Rs. 5900 / M 2,124,000 43,768,800
3 Plant & Machinery
Cost of Refrigeration Equipment, 6,000,000
Racking System 4 High 3,600,000
Handling Equipment including Double Reach
Forklift, Hand Pallets & Safety Equipment4,000,000
Standby Generator 3,000,000 16,600,000
4Import Expenses including Clearing Charges
& Duties (15%)2,490,000
5 Erection / Instalation (8%) 1,328,000
6 Utilities Connections 2 600 000
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TABLE III-21: 2CS (500 TONS) AT KARACHI & LAHORE AIRPORTS FOR FRUITS & VEGETABLES
Sr.
#Description
Unit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 3,000,000 per acre for Air
Port & See Ports on an average *2 1,500,000 3,000,000 3,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM
(See Refer III-15)2 3,456,000 6,912,000
Cost of Boundary Wall @ Rs. 5900 / M 2 1,062,000 2,124,000 9,036,000
3 Plant & Machinery
Cost of Refrigeration Equipment, 2 4,667,000 9,334,000
Handling Equipment 2 125,000 250,000
Standby Generator 2 1,500,000 3,000,000 12,584,000
4Import Expenses including Clearing Charges
& Duties (15%)1,887,600
5 Erection / Instalation (8%) 1,006,720
6 Utilities Connections 2 1,600,000 3,200,000 3,200,000
7 Pre operating Expenses (5%) 1 535 716
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TABLE III-23: 3CS (5000 TONS) AT PORT QASIM, KPT & GWADAR PORT FOR FRUITS & VEGETABLES
Sr.
#
DescriptionUnit Unit Price Amount Total Amount
Pak Rs. Pak Rs. Pak Rs.
1Cost of Land @ 3,000,000 per acre for airports
& seaports on an average *3 3,000,000 9,000,000 9,000,000
2 Building
Cost of RCC Structure @ Rs. 10,800 / SqM 3 76,096,800 228,290,400
Cost of Boundary Wall @ Rs. 5900 / M 3 2,596,000 7,788,000 236,078,400
3 Plant & Machinery
Cost of Refrigeration Equipment, 3 8,000,000 24,000,000
Racking System 4 High 3 6,000,000 18,000,000
Handling Equipment 3 4,000,000 12,000,000
Standby Generator 3 4,000,000 12,000,000 66,000,000
4Import Expenses including Clearing Charges
9 900 000
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10- PROPOSED MEANS OF FINANCING
LOAN
Long Term Loan 70% 1,287,724,042
Total Loan 1,287,724,042
EQUITY
Sponsors Equity
Government Equity 15% 275,940,866
Private Sponsors Equity 15% 275,940,866
Total Sponsor Equity 551,881,732
TOTAL FINANCING 100% 1,839,605,774
Debt equity ratio is taken as 70:30 and 70% of total project cost will be borrowed from bank
as long term loan on 12% per annum interest rate. But as per government's policy for codl
chain 6% mark up will be paid by government of Pakistan and the investor / sponsor has to
pay only 6% on loan amount.
Equal public private partnership is proposed and as per this arrangement government equity
will be 15% and private sponsor’s equity will be 15%.
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Cold Chain Project
Final Report, Volume-III Cold Storages Arch Vision
11- FINANCIAL ANALYSIS
A detailed financial analysis is carried out and enclosed in this section.
Projected Income Statement is prepared and enclosed as Table III-25. The key
assumptions as detailed in Section 11.1 is made basis for calculating total sale.
Projected Profitability Statement, inclusive of total sales, gross profit, operating expenses,
operating profit and non operating profit is developed making basis of key assumptions
given in section 11.1 and enclosed in section 11.2. The projected profitability statement
clearly indicates that the project can be successfully operated from very first year.
In continuation of above Project Cash Flow Statement is prepared and enclosed in
Section 11.3. According to the projected cash flow Internal Rate of Return (IRR) is 30.81and Net Present value (NPV) is Rs. 3.09 billion.
Projected Balance Sheet is also prepared and enclosed in section 11.4. Return on equity iscalculated and found quite reasonably increasing with the passage of time.
Break Even Analysis shows that breakeven point for first year is 82.53% which is a little
bit risky but the break even points for second and third year decreases gradually (ReferSection 11.5), and from fourth year the project can be successfully operated at less then
half of design capacity (i.e. 47.5%).
Benefit Cost Ratio of the project is 1.76 and is given in Section 11.6.
In the light of above discussion it is concluded that the project is financially viable,highly profitable and of very low risk.
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TABLE III-25: PROJECTED INCOME STATEMENT (CS)
(RS. IN MI LLI ON)
Assumption
Cold Storage
Income
Design
Capacity
100 %
Year 1
60%
Year 2
70%
Year 3
80%
Year 4
90%
Year 5
90%
Year 6
90%
Year 7
90%
Year 8
90%
Year 9
90%
Year
10
90%
723 433.8 506.1 578.4 650.7 650.7 650.7 650.7 650.7 650.7 650.7
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3. Electricity Charges
Electricity cost per month for 1000 ton
Cold Storage = Rs. 124,200
Unit consumes by 1000 ton cold storage = 28.75 Kw/Hr
Average Unit Cost = Rs. 6/-
Total Storage Capacity = 60,300 Ton
Total Electricity Charges/ Year = 89.87 Million
4. Diesel Expense = Rs. 3% Electricity Charges
5. Salaries
6. Amortization of Pre-operating ExpensesRecovery Period = 5 Years
S. No. Description
No. of
Persons
per Month
Salary Per
MonthTotal Salary
1 General Manager 23 30,000 690,000
2 Quality Control Officer 23 15,000 345,000
3 Manager Finance 23 25,000 575,000
4 Operating & Maintenance Engineer 23 20,000 460,000
5 Office Staff 46 8,000 36,800
6 Technicians 46 10,000 460,000
7 Labour 460 6,000 2,760,000
Total Monthly Salaries 5,326,800
Total Yearly Salaries 63,921,600
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Cold Chain Project
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11.2 Financial Results
The projected profitability statement, projected cash flow, balance sheet and otherfinancial indicators are given on page numbers 67-71
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Cold Chain Project
Final Report, Volume-III Cold Storages Arch Vision
13- RECOMMENDATIONS
This prefeasibility study is conducted to establish a complete cold chain system under
National Trade Corridor Improvement Project and divided in to three interconnected
links including export pack houses, cold storages and refrigerated containers. In this
volume, recommendations for cold storages will mainly be discussed.
Since the horticultural crops (fruits and vegetables) are highly perishable in nature and
quality of produce deteriorate in very short period. To overcome the avoidable post
harvest losses and to provide the local and international consumers with quality produce it becomes inevitable to establish an effective nation wide cold chain system.
This will not only improve the fresh produce quality and reduce post harvest losses
but also enhance the international trade opportunity.
To develop a comprehensive national cold chain system, 13 cold storages at
production and market areas and 10 facilities at airports and seaports (Table III-2 &
III-3) are recommended in all four provinces of Pakistan. These facilities are mainly
for Kinnow, Mango, Peach, Apple, Apricot, Potato, Onion, Grapes and Dates but can
also be utilized for other fruits and vegetables.
PROJECT COST
For calculation of project cost land value is taken on an average, which may increase
or decrease depending upon the selected sites. Total project cost inclusive of
infrastructure, machinery and plants and initial expenses comes out to be 1.84 billion(refer Table III-24)
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Cold Chain Project
Final Report, Volume-III Cold Storages Arch Vision
The potential investors for participation in private sector equity are possible to be
from exporters, big farmers, entrepreneurs, industrialist with experience in related
fields’ industrial projects, Pakistanis living abroad, multinationals etc. It is also possible that a consortium of private investors who are willing to invest for these
facilities may be formed comprises of various identified stakeholders as above.
Risk analysis
Although the Break Even Point of first year is on higher side but it comes down with
the passage of year. From fourth year the project can be successfully operated on less
than half of full design capacity (i.e. 47.5%) and it reduces the risk to quite an extent.
Government must make sure that the high-tech plants and machinery must be used for
the project to provide competitive edge over existing traditional cold stores.
Once the cold storages are constructed in production areas growers will be benefited
by getting higher prices of fruits and vegetables as well as timely direct payment from
exporters. Apart from above export will be increased and export prices gaps can be
significantly reduced.
Technical assistance
It must make compulsory that plants and machinery suppliers will provide technical
know how to operate and maintain the project. Training programs for sponsors and
investors shall be organized for technical and administrative staff including visit to
foreign countries and attending local workshops. This will help in learning the
functioning of state of the art facilities and proper implementation of the project.
ROLE OF STAKEHOLDERS
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Cold Chain Project
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Constant Research and Development in horticulture sector especially cold
chain.
Future expansion and acquiring updated equipment and technologies.Constant follow up to explore and capture new export markets.
Making mandatory to use cold chain facilities for export of fruits &
vegetables.
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Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700
Cost of Goods Sold
Machine Maintenance 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169 4.169
Direct Electircity 89.870 94.364 99.082 104.036 109.238 114.699 120.434 126.456 132.779 139.418
Diesel Expense 2.696 2.831 2.972 3.121 3.277 3.441 3.613 3.794 3.983 4.183
Total 96.735 101.363 106.223 111.326 116.684 122.309 128.216 134.419 140.931 147.769
Gross Profit 337.065 404.737 472.177 539.374 534.016 528.391 522.484 516.281 509.769 502.931
Operating Expenses
Salaries & Remuneration 63.921 67.117 70.473 73.997 77.696 81.581 85.660 89.943 94.440 99.162
Amortization of Pre-Operating Expenses 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000
Promotional Expenses 4.338 5.061 5.784 6.507 6.507 6.507 6.507 6.507 6.507 6.507
Depreciation 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694
Total 207.263 211.182 215.261 219.508 223.207 211.782 215.861 220.144 224.641 229.363
Operating Profit 129.802 193.555 256.916 319.867 310.809 316.608 306.622 296.137 285.127 273.567
Non Operating Expenses
Financial Charges on Long Term Loan 77.263 69.537 61.810 54.080 46.358 38.632 30.910 23.179 15.453 7.720Profit Before Tax 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847
Tax
Profit After Tax 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847
Accumulated Profit 52.539 176.556 371.662 637.449 901.900 1179.876 1455.589 1728.547 1998.221 2264.068
11.2 PROJECTED PROFITABILITY STATEMENT
Exempted for 10 Years
(RS. IN MI LL ION)
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Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sources
Profit After Taxation 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847
Add Depreciation 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694 123.694
Add Ammortization 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000
Total Sources 191.543 263.022 334.110 404.791 403.455 401.670 399.406 396.652 393.368 389.541
Utilization
Repayment of Loan 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770
Total Utilization 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770 128.770
Surplus Funds 62.773 134.252 205.340 276.021 274.685 272.900 270.636 267.882 264.598 260.771
Balance B/F 0.000 62.773 197.024 402.364 678.385 953.070 1225.970 1496.607 1764.489 2029.087
Balance C/F 62.773 197.024 402.364 678.385 953.070 1225.970 1496.607 1764.489 2029.087 2289.858
Net Present Value of Cash Outflow = NPV = Rs 3.086 billion, Assume Discount Rate = 11%
Internal Rate of Return = IRR = 30.81%
(RS. IN MI LLI ON)
11.3 PROJECTED CASH FLOW STATEMENT
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11.4 PROJECTED BALANCE SHEET
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cash 0.000 62.773 197.025 401.592 675.368 945.718 1211.628 1472.113 1726.220 1973.012 2211.569
Land 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000 46.000
Fixed Assets 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058 1717.058
Depreciation 123.694 247.388 371.082 494.776 618.470 742.164 865.858 989.552 1113.246 1236.940
Net Fixed Assets 1763.058 1639.364 1515.670 1391.976 1268.282 1144.588 1020.894 897.200 773.506 649.812 526.118
Intangible Assets
Preoperating Expenses 76.547 76.547 61.237 45.927 30.617 15.307 0.000 0.000 0.000 0.000 0.000
Amortization 15.310 15.310 15.310 15.310 15.310 0.000 0.000 0.000 0.000 0.000
76.547 61.237 45.927 30.617 15.307 -0.003 0.000 0.000 0.000 0.000 0.000
Total Assets 1839.605 1763.374 1758.622 1824.185 1958.957 2090.303 2232.522 2369.313 2499.726 2622.824 2737.687
Long Term Loans 1287.724 1287.724 1158.952 1030.180 901.408 772.636 643.864 515.092 386.320 257.548 128.776
Less: Repayment 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772 128.772
Total Liabilities 1287.724 1158.952 1030.180 901.408 772.636 643.864 515.092 386.320 257.548 128.776 0.004
Owners Equity 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882 551.882
Unappropriated Profit 52.539 176.556 371.662 637.449 901.900 1179.876 1455.589 1728.547 1998.221 2264.068
Total Equity 551.882 604.421 728.438 923.544 1189.331 1453.782 1731.758 2007.471 2280.429 2550.103 2815.950
Total L iabilities & Equity 1839.606 1763.373 1758.618 1824.952 1961.967 2097.646 2246.850 2393.791 2537.977 2678.879 2815.954
Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700
Net Income 52.539 124.018 195.106 265.787 264.451 277.976 275.712 272.958 269.674 265.847
ROE (%) 8.692 18.349 26.119 32.505 32.395 33.497 33.315 33.092 32.825 32.510
(RS. IN M ILL ION)
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YEAR I YEAR 2 YEAR 3
Sales 433.800 506.100 578.400
Sno. Description
Total
Operating
Cost
Variable
Operating
Cost
Fixed
Operating
Cost
Total
Operating
Cost
Variable
Operating
Cost
Fixed
Operating
Cost
Total
Operating
Cost
Variable
Operating
Cost
Fixed
Operating
Cost1 Machine Maintenance 4.169 2.918 1.251 4.169 2.918 1.251 4.169 18.340 7.859
2 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974 89.870 71.896 17.974
3 Diesel Expense 2.696 2.696 ---- 2.696 2.696 ---- 2.696 2.696 ----
4 Salaries & Remuniration 63.921 51.137 12.784 67.117 53.694 13.423 70.473 56.378 14.095
5 Promotional Expenses 4.338 4.338 ---- 5.061 5.061 ---- 5.784 5.784 ----
6 Financial Charges on Lo 77.263 ---- 77.263 69.537 ---- 69.537 61.810 ---- 61.810
7 Amortization 15.310 ---- 15.310 15.310 ---- 15.310 15.310 ---- 15.310
8 Depreciation 123.694 ---- 123.694 123.694 ---- 123.694 123.694 ---- 123.694
Total 381.261 132.985 248.276 377.454 136.265 241.189 373.806 155.094 240.742
Sales-V .cost 300.815 369.835 423.306
Breakeven - % 82.534 65.215 56.872
YEAR 4 YEAR 5
Sales 650.700 650.700
Sno. Description
Total
Operating
Cost
Variable
Operating
Cost
Fixed
Operating
Cost
Total
Operating
Cost
Variable
Operating
Cost
Fixed
Operating
Cost
1 Machine Maintenance 4.169 18.340 7.859 4.169 18.340 7.859
2 Direct Electricity 89.870 71.896 17.974 89.870 71.896 17.974
3 Diesel Expense 2.696 2.696 ---- 2.696 2.696 ----
4 Salaries & Remuniration 73.997 59.197 14.799 77.696 62.157 15.539
5 Promotional Expenses 6.507 6.507 ---- 6.507 6.507 ----
6 Financial Charges on Lo 54.080 ---- 54.080 46.358 ---- 46.358
7 Amortization 15.310 ---- 15.310 15.310 ---- 15.310
8 Depreciation 123.694 ---- 123.694 123.694 ---- 123.694
Total 370.323 158.636 233.716 366.300 161.596 226.734
Sales-V .cost 492.064 489.104
Breakeven - % 47.497 46.357
11.5 BREAK EVEN ANAYLSIS
Break Even Point (Q) = FC x 100
Sale - VC
Break Even Point for year 1 = 82.53%
Break Even Point for year 2 = 65.21%
Break Even Point for year 3 = 56.87%
Break Even Point for year 4 = 47.50%Break Even Point for year 5 = 46.36%
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11.6 BENEFIT COST RATIO
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Factor based on 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247
15% discount
Sales 433.800 506.100 578.400 650.700 650.700 650.700 650.700 650.700 650.700 650.700
377.406 382.612 380.587 372.200 323.398 281.102 244.663 212.779 184.799 160.723
2920.269
Cost of Goods Sold 96.735 101.363 106.223 111.326 116.684 122.309 128.216 134.419 140.931 147.769
Operating Expenses 207.263 211.182 215.261 219.508 223.207 211.782 215.861 220.144 224.641 229.363
Total Cost 303.998 312.545 321.484 330.833 339.891 334.092 344.078 354.563 365.573 377.133
264.478 236.284 211.536 189.237 168.926 144.328 129.373 115.942 103.823 93.152
1657.079
Benefit Cost Ratio = 1.762
(RS. IN M ILL ION)
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SL Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month
# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 Pre-feasibility Report
2 PC - 1
3 Government Approval
4 Public / Private J.V.
5 Procurement of Land
6 Civil Works
7Opening L.C. / Machinery
Procurement
8 Arrival of Machinery
9 Erection and Installation
10 Commissioning
Fig III-18: Implementation Plan
12- IMPLEMENTATION PLAN
Months
Description
A tentative implementation plan is prepared and given in Figure III-18
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