Militants torched 160 vehicles, including dozens of Humvees destined for US and allied forces fighting in Afghanistan, in the boldest attack so far on the critical military supply line through Pakistan.

Rows of destroyed Humvees and military trucks are seen at the Portward Logistic Terminal in Peshawar, Pakistan, Sunday, December 7, 2008. Militants blasted their way into two transport terminals in Pakistan on Sunday and torched more than 160 vehicles destined for US-led troops in Afghanistan, in the biggest assault yet on a vital military supply line. [Agencies]

The American military said Sunday's raid on two transport terminals near the beleaguered Pakistani city of Peshawar would have "minimal" impact on anti-Taliban operations set to expand with the arrival of thousands more troops next year.

However, the attack feeds concern that insurgents are trying to choke the route through the famed Khyber Pass, which carries up to 70 percent of the supplies for Western forces in landlocked Afghanistan, and drive up the cost of the war.

It also dents faith in Pakistani authorities already under pressure from India and the US to act on suspicion that the deadly terror attacks in Mumbai were orchestrated by Islamic extremists based in Pakistan.

The owner of one of the terminals hit Sunday denied government claims that security was boosted after an ambush last month in which bearded militants made off with a Humvee and later paraded it in triumph before journalists.

"We don't feel safe here at all," Kifayatullah Khan said. He predicted that most of his night watchmen would quit their jobs out of fear. "It is almost impossible for us to continue with this business."

Rows of destroyed Humvees and military trucks are seen at the Portward Logistic Terminal in Peshawar, Pakistan, Sunday, December 7, 2008. [Agencies]

The attack reduced a section of the walled Portward Logistic Terminal to a smoldering junkyard.

Khan said armed men flattened the gate before dawn with a rocket-propelled grenade, fatally shot a guard and set fire to 106 vehicles, including about 70 Humvees.

Humvees are thought to cost about $100,000 each, though the price varies widely depending on armor and other equipment, meaning Sunday's losses may exceed $10 million.

A reporter who visited the depot saw six rows of destroyed Humvees and military trucks packed close together, some on flatbed trailers, all of them gutted and twisted by the flames.

Khan said shipping documents showed they were destined for US forces and the Western-trained Afghan National Army.

The attackers fled after a brief exchange of fire with police, who arrived about 40 minutes later, he said.

Nine other guards who stood helplessly aside during the attack put the number of assailants at 300, Khan said. Police official Kashif Alam said there were only 30.