Monday, August 29, 2016

CPEC to reduce poverty, unemployment: Prime Minister Nawaz Sharif


ISLAMABAD: The China-Pakistan Economic Corridor (CPEC) will help regional countries in reducing poverty and to bring in durable peace, Prime Minister Nawaz Sharif said on Monday.

Addressing the inaugural session of the two-day CPEC Summit and Expo to enhance awareness about the ambitious project, Sharif said the project would not only serve as a “game-changer” for Pakistan, but also for entire region by helping it rid of deprivation and bringing peace and prosperity.

The prime minister termed it a “new concept in diplomacy” and said it would help in elimination of poverty and unemployment.

The premier said CPEC was not merely a strategic agreement, but culmination of a decade-long friendship between Pakistan and China. He said it was an advanced stage of relationship in the history of cooperation and collaboration between the two countries on issues of global importance.

He said the two sides never left each other in times of distress and recalled Chinese assistance to Pakistan following the devastating earthquake in 2005 and floods in 2010.

He said during his visit to Pakistan, President Xi Jinping told the parliament that Pakistan stood by China when it was isolated. He said now China has reached out to the country when Pakistan stood economically isolated.

He termed the relationship between the two countries as “very special” and said the two countries have always supported each other at international fora and was based on basis of trust and honesty.

He termed CPEC most important initiative of 21st century and said it perfectly complements Pakistan's vision 2025.

Sharif said Pakistan was an emerging economy and was rich in natural resources. He mentioned the highest GDP in last eight years, with best performing stock market, doubling of the foreign exchange reserves and improvement of security environment.

He said the economic value of the project was $46 billion dollars, however, the real impact was many times more and would have a longer lasting effect.

He said the project would not only improve Pakistan's own infrastructure but would also provide it the much needed know how, knowledge and expertise in new technologies.

He said $35bn would be invested in energy sectors alone to produce 10400MW of electricity.

The project will benefit all regions of Pakistan equally including Gilgit Baltistan and remote areas of Khyber Pakhtunkhwa and Balochistan, said the PM.

He described development of Gwadar as the “jewel project” of the entire CPEC, with its own power generation, road, rail and air links and said it would serve as a "model smart port city".

The event was attended by Minister for Planning Ahsan Iqbal, Advisor to Prime Minister on Foreign Affairs Sartaj Aziz, Chairman Parliamentary Committee on CPEC Mushahidullah Khan, Chinese ambassador to Pakistan Sun Weidong and leading industrialists, ambassadors, businessmen.

The Summit held here at the Pakistan China Friendship Centre was hosted by Ministry of Planning, Development and Reform and marks the inking of historic $46bn CPEC project. It was inaugurated earlier in the day by the prime minister.

Source: Dawn

Friday, August 26, 2016

Pakistan Maritime boundary increases by 50,000 square kilometers



KARACHI (Dunya News) – Pakistan Maritime boundaries has increased by 50,000 square kilometers getting complete access to the in-depth resources.

United Nations (UN) Maritime Commission completed its review on March 19 after which they accepted the claim of Pakistan regarding rise in territorial waters.

Pakistan’s sea boundary has gone beyond 200 nautical miles reaching to 350 nautical miles.

Pakistan’s present 240,000 square kilometers along with additional fifty thousand square kilometers have come under the administration of Continental Shelf Pakistan.

Article 76 of International Maritime Law permits the coastal countries to expand their continental shelf from 200 nautical miles.

However, coastal areas have to prove their case before UN Maritime Commission through technical statistics and content.

The project to enhance the maritime boundaries of Pakistan was started in 2005 by the Pakistan Air Force (PAF) and National Institute of Hydrography under the patronage of Ministry of Science and Technology whereas UN Commission approved the recommendations of Pakistan Continental Shelf after continuous analysis and research of one year.

The UN Maritime Commission is based on 21 experts of hydrography, geo-physics, geology and other relevant departments.

Pakistan also holds the honour to represent this organization as PAF Commodore Muhammad Arshad is the member of this commission.

Source: Dunya News

Thursday, August 25, 2016

BW selected as FSRU supplier by Pakistan GasPort Limited




BW Group (BW) has signed a 15-year agreement with Pakistan GasPort Limited (PGPL) to provide LNG regasification services utilizing a new-build Floating Storage and Regasification Unit (FSRU) for the second Pakistan LNG terminal.

BW’s state-of-the-art FSRU, Hull No. 2118 and currently at Samsung Heavy Industries (SHI) in Korea, will be utilized for this project. To be delivered in 4Q2016, the vessel offers a low environmental footprint, high efficiency, storage capacity in excess of 170,000m3 and a peak regasification capacity of 750mmscfd.

“We are proud to be selected as the FSRU supplier for the Pakistan project,” says Yngvil Ã…sheim, Managing Director of BW LNG. “BW is a leading player in the LNG sector, and we will leverage on our many years of experience to support Pakistan as they build their second LNG terminal. We look forward to a strong partnership with Pakistan GasPort and to delivering our commitments on time and at the highest quality.”

“We are delighted to be working with BW on this vitally important infrastructure project, which is the result of policies aimed at promoting investment and the renewed global faith in our country’s economy,” says Iqbal Z. Ahmed, Chairman of PGPL. “This landmark project will reduce Pakistan’s gas deficit by 30 percent, ensure fuel for 3,600 megawatts of new power generation plants being constructed in Pakistan to reduce power outages by 80 percent, and save some $1.5 billion in annual foreign-exchange savings.”

The project will be commissioned by 30 June 2017, at Port Qasim, Karachi.

BW is a leading international gas shipping company with more than 80 years of maritime energy transportation history, 40 years of operational experience in LNG, and a current fleet of 21 LNG carriers including newbuildings. BW is the world’s largest owner and operator of Very Large Gas Carriers and a leading player in tankers and Floating Production Storage and Offloading units (FPSOs). BW’s first FSRU, the BW Singapore, is currently involved in a five-year contract providing LNG regasification and storage services in Egypt.

PGPL is part of Associated Group (AG), one of Pakistan’s business houses specializing in the energy sector. Established in 1965, AG is today the country’s largest gas processor in the private sector, and represents both the largest investment made so far in Pakistan’s LPG sector and the most expansive nationwide LPG bottling, transportation and marketing network. AG also has interests in power generation, construction, and media.

Source: BW group

Industrial and University gap



A recent survey conducted by Career Advisory & Assessment Service has showed that 76.61% of employers in Pakistan are unhappy with caliber level of university graduates with respect to industry requirements. While another 94.74% of employers reckon that lack of advisory facilities in universities lead to the point where students opt for subjects that do not match their personalities. More than 70% employers do not consider grades as an evaluation criteria, 79% of employers prefer the personal development and 74% are craved for better soft skills of candidates. Now what these stats are showing? Misery of our education system where only rate racers of getting degrees exist. Or industrial talent acquisition programs are not suitable in Pakistan. There are many reasons backing up this situation.

The lead driver for the situation is absence or weak linkage/cooperation between academia & industry. As Universities are just getting focus on number of graduates passing out without considering the market situation and industry analysis. And offering the programs that are not complying with industry requirement. Meanwhile industries are just demanding the certain level of capabilities without deeming the level of education, learning facilities and career guidance services in universities. The ultimate result leads to increased unemployment rate and depression in society. As here universities are enrolling on bulk in Business Administration segment without knowing past business graduates are still jobless or doing low-level jobs because market has been saturated.

The syllabus of subjects is also a reason for this collapse. Outdated contents or foreign techniques of practicing created the conflicts in coping up with local needs. As business graduates are being studied the ways of doing business that had practiced in North America and Europe in 20th century. Graduates just know how Kentucky Fried Chicken’s Colonel Sanders developed his old age yearning into real business empire in fast food industry but even didn’t hear the name of Hakim Muhammad Saeed and his project City of Wisdom (Madina-tul-Hikmat) during their studies. Their projects cover the Aramco & British Petroleum but rarely headed towards PSO & Attock Petroleum.

Local information for their concern subjects is scarce and teachers also unaware of that. With the subject contents defects, the teaching methods, pedagogy and grades evaluation criteria are not effective too. Lads don’t know how to convey their message to companies, in form of Resumes, interviews etc., even after getting their degrees. And guidance for career path is totally missing in universities. Advisory councils are rare and if present ineffective in most universities. This time urges us to reshape the system that delivers fruitful results for academics and industries both.

It is necessary to forge a plate form that combines the industry and university on same point where both heed to each other’s needs and manifesto. University should manage the office for industrial linkage and take feedback from them. Alumni of universities are also best source of feedback and real informer of industry. Their response can help academia to develop the strategies for future programs.

At the time of admission, Students should be advised for peculiar subjects which they excelled previously and yearn to move on. And after passing out, post-degree situations of each student should consider. Similarly, industrial manager should visit and deliver the lectures on job exposure and know-how of environment outside university. Talent acquisitions teams and faculty members should arrange the meetings on monthly basis to share their working for better output. Ultimately, the cooperation of theory and practice is main key to success. Therefore all efforts should be assert to make result-oriented collaboration by all stake holders.

CPEC TO BRING ABOUT REVOLUTION IN BALOCHISTAN: JAM KAMAL



ISLAMABAD: Minister of State for Petroleum and Natural Resources, Jam Kamal Khan Thursday said that the Pakistan China Economic Corridor (CPEC) would bring about economic revolution in the whole Baluchistan region.

He said that the development of Gwadar port was the priority of the government which would not only help development of the area but would ensure progress of whole Balochistan.

According to press statement issued here, the Minister was inaugurating a gas extension project of Sui Southern in Gawadar. He urged the youth to focus on education and overcome all the confronting challenges.

He said that provision of gas to the far-flung areas of Balochistan was priority of his government.

He said that no attention was given to the far flung areas of Balochistan in the past, however added that the current government was focusing on backward areas and was working on various schemes to uplift these areas.

He said that the government was working on different projects of education, health, irrigation to help develop the area.

Earlier, the minister was briefed by Acting Director Sui Southern, Waseem Ahmad on the extension project. He was informed that gas network existed in Gwadar since 2006 which has been facilitating about 994 domestic and two commercial consumers.

He said that with the extension of the project, all the areas of city would be facilitated. Chairman Gwadar, Dosteen Jamal-ud- Din, Chairman District Council, Babu Ghulab Baloch, Deputy Commissioner Gwadar Tufail Baloch were also present on the occasion.

Source:www.berecorder.com

Wednesday, August 24, 2016

Shipping & logistics industry assured of full govt support



KARACHI – Federal Minister for Ports & Shipping Mir Hasil Khan Bizenjo has assured the shipping & logistics industry of full support of government.


He was speaking as chief guest at 6th Sustainable Shipping, Logistics & Supply Chain Management Conference & Exhibition held here Wednesday.

Bizenjo not only assured his support but also promised to redress the grievances of the business community .
He further assured the participants of the conference of his full assistance for the growth and development of warehousing and port in the country.

The conference was inaugurated by Vice Admiral Syed Arifullah Hussaini, Commander Pakistan Fleet, Pakistan Navy and attended by prominent speakers including Tauqeer Malik, Chairman Air Cargo Agents Association of Pakistan, Izhar Ul Haq Qamar, Chairman Pakistan Freight Forwarders Association, Tariq Rangoonwala, Chairman ICC Pakistan, Arslan Khan, MD Maersk Pakistan, A Hashim, President & CEO Homepack Freight, Mohammed Hanif Ajari, Director Supply Chain, Getzs Pharma, Ziad Chaudhry, CFO Bayer Pakistan and others .

Mehmood Tareen, founder & CEO of The Professionals Network and the organizer of the conference, emphasized on the importance of such conferences.
He thanked for coordination of sponsors, participants and facilitators for their valuable support for making this conference a grand success and result oriented.
He promised to continue his efforts for the betterment of supply chain solutions.

Ateeq Ur Rehman spoke of misplaced priorities and gross negligence in the shipping, logistics and warehousing industry of Pakistan.
He requested the government to release the burden of the supply chain management entrepreneurs from imposed indirect and withholding taxes.
He suggested reducing the custom duty on the import of pre engineered building (warehouse) and place it on zero rating, thus this will encourage the growth of warehousing in the country.

At the concluding of the event, eight companies were awarded with the Executive Green Supply Chain Award by the Federal Minster Ports & Shipping.
Companies were, PNSC, Premier Group, Yunus Textile Mills, DHL Pakistan, Pepsi Cola, KPT, Raaziq International and United Insurance.

Source: http://www.nation.com.pk

Saturday, August 20, 2016

PM says will not compromise on Pakistan’s strategic interests

  • PM launches 17,000-tonne Pakistan Navy Warship fleet tanker at Karachi Shipyard
  • Says Pakistan will consolidate maritime infrastructure from Karachi to Gwadar and facilities to expand trade
  • Pakistan, Turkey to expand cooperation in defence production; Four submarines to be built at same shipyard with Chinese collaboration; Another shipyard to be built in Gwadar
Prime Minister Nawaz Sharif on Friday said that the government is committed to consolidating maritime infrastructure along the coast from Karachi to Gwadar to provide the requisite facilities for the expansion of trade.
The PM spoke after launching a 17,000-tonne Pakistan Navy Warship fleet tanker at the Karachi Shipyard. The PM said on the occasion that there would be no compromise on the country’s strategic interests.
The prime minister said that the ongoing development projects including the China-Pakistan Economic Corridor (CPEC) reflect the government’s aim to achieve maximum output in terms of regional trade and shipment with Gwadar as a focal point.
PM Nawaz said self reliance in defence production is the objective of his government and that he will support indigenisation in all technological spheres.
The fleet tanker was built in collaboration with Turkish firm Savunma Teknologiler Muhendisilik (STM). The design of the fleet tanker was prepared by Turkish engineers, while the project was executed in the Karachi Shipyard.
The prime minister expressed the hope that Pakistan will continue to collaborate with the Turkish government and businesses to build more ships and fleets at the Karachi Shipyard.
“Our friendship will withstand the tests of time,” he said.
He said joint ventures will further strengthen the mutual bonds between Pakistan and Turkey. It will open up more opportunities for cooperation in the field of building indigenous warships and other defence sector products.
Nawaz Sharif said he has a vision of a democratic and economically vibrant Pakistan. He said the country has tremendous human resources, especially a large youth population, to effectively work for national development.
Prime Minister Nawaz Sharif praised the Karachi Shipyard, Pakistan Navy and the Ministry of Defence Production for launching the ship two months ahead of schedule.
He said the strategic location of Pakistan remains an invaluable asset and expressed confidence that Pakistan’s fleet will play an important role in securing the country. He said that developing shipping is part of our maritime initiative. He said the government is cognizant of the fact that the shipping industry plays a vital role in the industrial growth and employment generation for a country.
‘KARACHI SHIPYARD REVIVED’:
The prime minister said the new shipyard in Gwadar is being accorded due priority.
He announced Rs 100 million as bonus for the shipyard’s employees.
Minister for Defence Production Rana Tanwir Hussain said the Karachi Shipyard is a vibrant establishment which is working at 100 per cent capacity and earning record profit. He said the revival of the shipyard became possible due to the Pakistan Navy’s support in placing orders for the construction of its ships. He said four submarines will be built at the shipyard with the support of China.
He said the country has a long coast line extending from Karachi to Jiwani and establishment of new shipyards will enhance ship building. He said the government is working on the establishment of a shipyard at Gwadar.
‘PAKISTAN, TURKEY SHOULD EXPAND COOPERTION IN DEFENCE PRODUCTION’:
Dr Ismail, leader of the Turkish delegation, said Turkey and Pakistan need more cooperation in today’s security environment. Both countries are facing very important challenges including terrorism. He suggested increasing cooperation in defence production.
Dr Ismail said many new projects for military, air force and naval forces are in the works. He hoped that the two countries will jointly manufacture a fighter jet.
Karachi Shipyard Managing Director Rear Admiral Syed Hassan Nasir in his welcome address said the ship will be in service for three to four decades. He it is a symbol of our friendship with Turkey.
The design of the 17,000-tonne heavy fleet tanker was prepared by Turkish engineers. It was built with the cooperation of Turkey in the Karachi Shipyard.
Source: http://www.pakistantoday.com.pk

Friday, August 19, 2016

Pakistan heading towards major growth in shipping , energy industries: Arif Elahi


LAHORE: The Chairman Pakistan National Shipping Corporation (PNSC), Arif Elahi has said that Pakistan is heading towards major growth in its shipping and energy industries with the establishment of China Pakistan Economic Corridor (CPEC).

He state this, while addressing an interactive workshop held in Karachi organized by PNSC object to attract investments and find solutions wisdom-sharing with numerous international experts of the Marine-fuel Bunkering industry. “The vast potential and robust developments that promise great business opportunities for investors in this arena”, he added.

The pioneering event was attended by many leading experts, professionals and stakeholders of the Bunkering industry from Pakistan, Middle East and the United Kingdom, including; the Manager Sales of World Fuel Services London, Maximillian Canegie-Jones; Global Operations Manager of Lloyds Register Fuel Oil Advisory Services of UK, Naeem Javed; General Manager of Rais Hassan Saadi Group of Dubai, Mujahid Hassan; and senior official of Dan Bunkering Dubai, Adil Qayyum.

Among other notable delegates were; Director of Marine Fleet Management Singapore, Ahmed Pervaiz; Head of Bunkering PNSC, Saad Masood, and the Commercial Manager of Pakistan Refinery Ltd, Sami ur Rehman, along with senior level representation of major financial institutions like Standard Chartered Bank, Mr. Adil Salahuddin, Head of Financial Markets.

The Executive Director (SM) Fleet of PNSC, Tariq Majeed, who was the Moderator of the workshop, and other senior executives from PNSC highlighted the regulatory incentives, tax-relief and support provided by the Pakistan government to promote the establishment of Bunkers, which play an important role in fueling the shipping operations and global cargo vessels, coming to the various sea-ports in Pakistan.

It is worth-mentioning here that over the years, PNSC has shown outstanding performance in its global shipping operations, earning nearly Rs.2 Billion in annual profits. It has raised its capacity to carry 700,000 tons of dead-weight annually, while it safely and successfully carries 90% of Pakistan’s oil imports. It is now planning to create partnerships with the bunkering enterprises, Oil-refineries, financial institutions and traders of marine-fuel, with willingness to invest in new machinery, cranes and dredgers, for strengthening the infrastructure at the sea-ports of Pakistan.

The experts held insightful discussions on the various challenges and opportunities in this essential sector. With more than 4000 international vessels docking on the ports in Pakistan, there is a need to develop more efficient facilities and oil-testing labs to ensure quality and save the unnecessary expenditure incurred by the ships arriving in Pakistan. 70% of the costs in shipping operations go into the fueling of vessels
“As the demand for Marine fuel increases in Pakistan, global investors can find great opportunities in bunkering ventures in Pakistan by creating synergies with the local entrepreneurs, to create higher standards of quality and efficiencies. With the sharp reduction and volatility in global oil prices, this whole industry needs to work in cohesion to minimize their risks, optimize growth and meet the emerging challenges”, the experts concluded.

Source: https://www.thenews.com.pk

Thursday, August 18, 2016

PM to induct new ship into Pakistan Navy fleet tomorrow



ISLAMABAD: A major warship 17,000 tonnes Fleet Tanker will be inducted in the Pakistan Navy tomorrow (Friday) that would enhance its logistic capabilities. Prime Minister Nawaz Sharif will be launching the warship. The Fleet Tanker has been built in collaboration with STM of Turkey under the ambit of the Ministry of Defence Production and the Pakistan Navy.

Federal Minister for Defence Production Rana Tanveer Hussain and Chief of the Naval Staff (CNS) Admiral Zakaullah will brief the prime minister about the salient features of the product. Turkey’s Ambassador to Pakistan Sadik Babur Girgin has also been invited for the ceremony.

The Pakistan Navy Fleet Tanker will play an important role in catering to the needs of the Pakistan Navy in meeting its logistical needs.

The prime minister is arriving in Karachi for a day-long visit where he will spend a hectic day. It would be his first visit to the metropolis in about three months and the first after his recovery from the cardiac surgery performed in London in May last. The prime minster will have meeting with Governor Sindh Dr. Ishratul Ebad and Chief Minister Murad Ali Shah at Karachi airport. Corp Commander Karachi Lieutenant General Naveed Mukhtar is also expected to have a meeting with Prime Minister Nawaz Sharif.

He will also have a brief review of the law and order situation in the province and particularly the ongoing operation in Karachi against terrorists and criminals.

Pakistan and Turkey are time tested friends. Joint ventures like construction of this Fleet Tanker will further strengthen our mutual bonds characterised by faith, common heritage, shared civilisation and commonality of interests. This initiative will certainly open more opportunities for further cooperation between Pakistan and Turkey in the field of indigenous warship construction and other defence sector products.

Launching of this ship, two months ahead of the schedule, is indeed a gift from the brotherly people and the government of Turkey to the nation on its Independence Day celebrations.

Source: https://www.thenews.com.pk

Sindh board of technical education

As written in circular now student can get admission Univeristy of Karachi after doing their Diploma of Associate Engineer studies. They will get admission in first year of BSc., BA or similar. This is similar to a FSc./FA candidate who get admission in BSc./BA (Bachelor in Arts)


Wednesday, August 17, 2016

Shipping and logistics moot on 24th August 2016



KARACHI: The Sustainable Shipping, Logistics and Supply Chain Management Summit & Exhibition will be held at a local hotel on August 24. Federal Minister Ports and Shipping Mir Hasil Khan Bazinjo will inaugurate the moot.

Talking to the media on Tuesday, Founder & amp; CEO of The Professionals Network and organizer of the event Mehmood Tareen aid that Commander Pakistan Fleet Vice Admiral Syed Arifullah Hussaini will preside the session, while Vice Admiral Shafqat Javed (Chairman KPT), Arif Elahi (Chairman PNSC) will be the guests of honour.

Tauqeer Malik Chairman ACAAP, Izhar Ul Haq Qamar Chairman PIFFA, Mohammad Hanif Ajari  Director Strategic Development, Getz Pharma, Ateeq Ur Rehman, Business Analyst and advisor KCCI, Brigadier Rashid Siddiqi  Executive Director PNSC, Ziad Chowdhry CFO Bayer Pakistan, Tariq Rangoonwala Chairman ICC Pakistan, Capt Rashid Jameel CEO South Asia Pakistan Terminals, would be the key speakers at the event.

Source: http://dailytimes.com.pk

Tuesday, August 16, 2016

Examination Class 2/1 COC September 2016

Date of form submission for class 2/1 is from 08 August to 01 September 2016. According to Directional General Port and Shipping CESS (Chief Engineer & Ship Surveyor), department paper will be held from 18 September. This delay is due to the Eid-ul-Azha break.

South Korean delegation visit PNSC



Karachi—A South Korean Government delegation visited Pakistan National Shipping Corporation (PNSC) and evinced keen interest in various projects relating to ports and shipping.
These projects include dredging work contribution by PNSC, workshop and dockyards development, training facilities exchange in maritime sector, Port development and operation especially related to oil piers, storage and pipeline ventures, said PNSC statement here on Thursday,
During the meeting, held here at PNSC Building, the delegation from Ministry of Ocean and Fisheries Republic of South Korea and Chairman PNSC exchanged views on investment opportunities in the port infrastructure development.

The proposals highlighted by the Chairman PNSC were the enhancement of Pakistan’s port infrastructure, reconstruction of Oil Pier- 1 at Karachi Port Trust (KPT), Oil Storage and Ullage issues,

Dredging Opportunities, PNSC Workshop, Operations of Harbour Crafts, Construction of Ship Building Facility.

Korean delegate desired forwarding of these projects with details through Ministry of Ports and Shipping. The South Korean 6-members delegation was led by Director of Port Investment Co-operation Division, Hi Young Lee.

Source: http://pakobserver.net

Karachi is blessed with two major Ports, Karachi Port and Port Qasim, that are operating at full capacity



A modern port is designed to cater to the demands of the economy, whether more imports are entering the country or whether goods and commodities are destined for exports. It is imperative that a strategic framework be in place to regularly upgrade and improve the infrastructure, eliminate unnecessary bottlenecks, ensure productivity and efficiency of dockworkers, stevedores, and the port management and operational staff, and to make the ports user-friendly in real time.

The Karachi Port is the lifeline of Pakistan’s economy. This is the first entry for imports and this is where Pakistan’s exports are shipped around the world. It is important that all essential steps are undertaken so that the port users are not handicapped with exorbitant and ad hoc dues and charges. The present Chairman of KPT, Vice Admiral (R) Shafqat Jawed, has often stressed the need for creating an enabling environment and introducing a corporate and efficient culture at the port. However, decisions must be taken to rationalize the tariff and dues structure. A review is presented alongwith some viable suggestions.

The first issue that crops up is that the Karachi Port tariffs for ships are very high and frequent changes are made without any information to port users. Due to high port tariffs and excessive light dues, KPT earns huge surpluses and then the trustees become generous in advancing huge money to build flyovers, underpass in the city, water fountains, and donating large amounts here and there. Port dues are dollar-based and for every increase in dollar value, KPT earns a bonanza. These resources are then used to finance projects that are not port based. Ministry of Ports and Shipping must issue explicit orders that port cash surplus cannot be used for non-KPT projects and events.

Light dues, which are based on Net Registered Tonnage (NRT) of the vessel, were Rs0.50 per NRT, but some five years ago, these were raised to Rs3 per NRT and again in 2012/2013 increased to Rs7 per NRT. These excessive dues are levied to maintain the Lighthouse. An example is that a ship carrying coal with 27,000 NRT is billed $1,948, adding Rs5 per metric tonne (PMT) of cargo. However, no proper accounting of the maintenance cost is provided to users. No one is consulted and no one knows where the money is spent. This has resulted in port dues and light dues for the vessel propping up to $1/1.50 PMT whereas, in actuality, port dues should be lower.

All this is eventually paid by users, while the business community gets to know later that freight costs are increasing for their imports and exports. They are thus paying excessive container Terminal Handling Charges (THC) since port dues ensue into increased freight charges. Nobody in any trade organizations nor even the Private Sector Trustees on the KPT Board monitor light dues and port dues and nor do they attempt to get these reduced. Resultantly, these are costing billions in supplementary cost to trade.

In fact, port charges should be bifurcated into local – those incurring port costs like salaries of KPT, maintenance and repairs, etc, and foreign – where foreign exchange is involved. This would save billions in cost of handling rapeseed, canola, wheat, coal, etc for exporters, importers, and even the government.

The container terminals have been given carte blanche to charge whatever they want in blatant violation of the contractual agreement. A vivid example is at Port Qasim where a Terminal operator, that quoted Rs390 PMT for the first ten years in the initial tender, is now unilaterally charging Rs469 PMT and upto $14 PMT. These container terminals are minting record profits and, no wonder, foreigners grabbed the PICT shares at abnormal prices since the profits are phenomenal. Shares of container terminals are akin to the money made by LNG and fertilizer companies, profits at tremendous cost to businessmen and farmers.

In the same manner, shipment of edible oil and crude oil is subject to higher than market rates because PNSC has been given the mandate of higher rates thus adding millions to the prices that the nation pays out for crude oil and petroleum. Private tanker owners worldwide are offering cheaper transportation freight rates on long-term based index but due to PNSC, oil cost rises. The modus operandi adopted by PNSC is that it is given first refusal rights on the tender for transportation. Instead of operating its own vessels, PNSC charters vessels from the open market at lower rates and skims the differential as its profit. Moreover, the PNSC dry bulk fleet was procured at higher rates and the operating losses of dry bulk carriers are enormous but these are camouflaged in the huge profits made from tankers.

KPT resources must be invested to upgrade the berths, introduce modern equipment, plant mangroves, clean up the polluted water and port area, and building high ceiling edifice at Groyne Yard so that environmental issues emanating from coal stored at the Groyne Yard are seriously addressed and eliminated. It is reiterated that a total ban be placed on utilizing KPT money for fountains, underpasses and flyovers in Karachi.

Another area where costs are negatively affected and is a very serious concern is the stranglehold that the truckers have on movement of goods from the port. They do not accept or agree to long-term commitments and hence arbitrarily jack up the per ton rates at will. They often resort to strikes with the result that port users suffer huge demurrage charges, stoppage of export shipments, shortage of essential items and commodities, and negative image of the port and country. Nowhere in the world, except Pakistan, is essential cargo blocked or movement hampered. The government must monitor this situation regularly and take immediate steps to control this menace.

KPT can reduce and control its maintenance expenses if there is strict monitoring and accountability on the utilization of tugs, pilot boats, dredgers, and other equipment. Furthermore, a functional and pragmatic system must be in force to monitor lethargic and bureaucratic attitude of many personnel, especially officers, who are always in one meeting or the other. This slows down port work and creates avenues of corruption and other ills of society. Thus, it is crucial that the majority of the Board of Trustees should be nominated by port users rather than asking for nominations from trade associations or appointing irrelevant persons, whether on political basis or due to their high profile. KPT is the pride of Pakistan and it will always have the critical mass, even after Gwadar, Port Qasim and the futuristic Keti Bunder.

(The writer is former president of Karachi Chamber of Commerce and Industry)

Source: https://www.thenews.com.pk

PNSC organises seminar on future of shipping sector



KARACHI: In order to recognise the recent tax reforms for shipping sector by the present government, Pakistan National Shipping Corporation (PNSC) recently held a seminar on “Prospects of Shipping Sector in Pakistan” in Karachi.

The purpose of the seminar was to highlight the recent exemptions by the present government on Customs duty, general sales tax and withholding tax on imports of ships and other floating crafts. The house was full with prominent representations from Pakistan’s shipping industry and stakeholders both from public and private sectors.

The seminar was honoured by Ports and Shipping Minister Senator Mir Hasil Khan Bizenjo and COMPAK Commander Vice Admiral Arifullah Hussaini.

The seminar was aimed to promote shipping sector of Pakistan, promulgate policies and incentives to ensure growth and prosperity of Pakistan’s maritime sector and encourage and attract local and foreign investors.

Addressing the audience, PNSC Chairman Arif Elahi highlighted the global perspective on the role of merchant shipping. He briefed about the merchant shipping of Pakistan, specifically the role of PNSC in uplifting trade, economic activities and supporting oil supply chain of Pakistan. He appreciated the efforts of MoP&S in abolishment of Customs duty, general sales tax and withholding tax on imports of ships and all floating crafts including tugs, dredgers, survey vessels and other specialised crafts purchased or bareboat chartered by Pakistani entity and vessels flying Pakistan flag.

The PNSC chairman, while emphasising the importance of maritime industry, also highlighted PNSC’s performance that has been outstanding in the last decade. He said that the current PNSC’s fleet comprises modern vessels with deadweight carrying capacity of 681,806 metric tonnes – highest ever since its inception, adding that the corporation’s profitability continues to increase with a net profit of over Rs 2 billion with foreign exchange savings of over $1.5 billion. PNSC has also paid dividends and taxes to the government, which amounts to billion of rupees and contributing its part in economic growth of Pakistan, he said.

“The current national seaborne trade of Pakistan stands at 73.0 million tonnes and looking at the potential of this sector, we expect this figure would reach to 95 million tonnes by year 2020,” the chairman added.

Elahi encouraged the participants to invest in maritime sector of Pakistan in areas i.e. oil tankers, bulk carriers, container vessels, LNG carriers, oil storage and ancillary shipping services to strengthen national fleet and improve shipping services in Pakistan.

“I invite all the stakeholders to fully utilise these benefits of exemptions of duties and taxes and welcome to enter into joint venture with PNSC in acquiring vessels for your own usage. This shall not only save the country’s huge valuable foreign exchange but will also improve our cost and reduce dependency on foreign carriers, which will ultimately benefit investors and shareholders by means of higher profitability,” the PNSC chairman said.

Ports and Shipping Secretary Khalid Pervez also expressed his gratitude to the ports and shipping minister for his untiring efforts in pursuing the government to abolish the Custom duty, GST and WHT on import of ships and all floating crafts. “This remarkable decision will help private sector invest in the maritime sector and will also provide golden opportunity for them to join PNSC through public private partnership,” he added.

The federal secretary appreciated the efforts made by the PNSC chairman and his team in the commercial and financial performances during the last financial year introducing reforms in the organisation and thanked them for organising such an informative seminar.

In the end, Ports and Shipping Minister Senator Mir Hasil Khan Bizenjo thanked all the participants and appreciated the reforms of the present government by exempting duties and taxes on procurement of ships, which has finally set the stage of development in maritime sector of Pakistan.

“I am pleased to inform you that our ministry is presently working in support with other ministries to improve port infrastructure, streamline supply chain management and developing of existing national fleet,” the minister added.

Bizenjo also highlighted the volatility that prevails in international shipping and also shared reasons that resulted in recent downturns, which posed significant risk to shipping market.

Source: http://dailytimes.com.pk

PNSC’S NET PROFIT REACHES RS1364MN WITH 30PC INCREASE



ISLAMABAD: Pakistan National Shipping Corporation (PNSC) Group has registered 30 per cent increase in its after tax profit which has reached Rs. 1,364 million during first nine months of current year.

The after tax profit of PNSC was Rs. 1,051 million during same period of last year.

Official sources on Friday said earnings per share for PNSC Group have been increased to Rs. 10.33 from Rs.7.96 in corresponding last period of July-March 2016.

Despite the pressure and major financial crunch by global shipping industry due to drastic reduction in bulk freight rates internationally, evident by significant reduction in Baltic Dry Index (BDI) at a lowest of 290 points from a high of 1,222 points last year, PNSC achieved better results by focusing on more profitable ventures besides retaining its repute as one of major contributors to sea borne trade in Pakistan.

The sources said PNSC has made a substantial growth in revenue of 49 percent in area of slot charter and 16.2 percent through own vessel oil business, thereby, offsetting losses incurred on dry bulk segment and maintaining its turnover at competitive level.

The direct operating expenses also reduced by 28 percent to Rs. 6,700 million from Rs. 9,298 million, thereby improving gross profit to Rs. 2,917 million as against Rs. 2,126 million for same period last year.

Regarding future plans, the sources said PNSC has been providing transportation services for liquid imports of the country and added more than 70 percent of the total imports are being transported through PNSC.

In order to expand business and to cater growing need of country’s requirement of liquid and dry imports, it is planned to acquire more oil tankers and dry cargo ships into PNSC fleet.

PNSC has already initiated process of establishing ferry cum cargo service which hopefully will start soon its operation work after completion of the process, the sources said.

Source: http://www.brecorder.com

Sunday, August 14, 2016

Falling prices set to revive PNSC tanker expansion



PNSC is expected to begin scouting for two South Korean or Japanese-built aframaxes of up to 10 years old in the next few months, Karachi-based tanker broking sources believe.


The owner is negotiating with state-owned energy companies for long-term crude oil transport contracts that PNSC believes could offer stable employment for the additional vessels, sources say.


In January, PNSC put on hold its proposed aframax acquisition plans and instead took a mix of long-term and spot charters to meet its requirements.


In 2013, it put aside $42m to acquire two aframaxes by mid-2015 but the rise in secondhand aframax prices stalled that project.


It last bought an aframax in 2014, paying Samos Steamship $33m for the 105,000-dwt Shalamar (ex-Ambelos, built 2006).


According to VesselsValue, similar aframaxes now cost about $21m, down from $32m in January.


PNSC’s aframax plan was part of a $565m fleet-expansion programme announced in 2012, targeting the acquisition of 14 ships by 2016.


Source: http://www.tradewindsnews.com

How was my 4th Engineer experience?

So today I want to let you know about my experiences as a 4th Engineer aboard Ship.
Starting from the basic thing that is SAFETY. Which is the first thing everybody will teach you from the first day of your life in Shipping sector? As this is essential while you are traveling around the ocean of this world. Maybe you are very far from the coast. Injury at sea is obviously so much dangerous for yourself.

When I get the call from my company PNSC (Pakistan National Shipping Corporation) I make my bag packing ready for departure from Lahore and get a ticket reservation from Akbar Chowk. Rethinking the most valuable item which will be required by me during my six months stay on board ship. Most important are documents which include your travel, academic and professional document. Academic documents eg. BSc. Maritime Studies, FSc and matric may not require by your company but it is fruitful to keep them with you. At least your recent pre-sea qualification ie Bachelor in Science (BSc.) Certificate. I also made a list of few items already which I wrote during my stay on the previous ship. So it is good to tale with that list.

After checking the number of items in the bag, I closed it and lock so that It will be secure during my whole journey Lahore (LHE) to Karachi (KHI) as I have to travel by train (Karachi Express 16 Down). I checked the weight of the bag which have to rolled with me. I also note down it on smartphone device to future reference. Also to check while I am signing off that how much surplus weight I have gained from my ship.

Especially recheck your traveling plus professional documents. Keep your bag ready at least one day before your departure either from train or airline because on the traveling day something you do not remember to put in your bag. You can put it in your luggage. 

So now it time to depart from home. My mother always used to make a dinner for me most of the time it is rice with chicken. But some chicken with chapatti. It always taste good to have home food instead of eating low standard food from station stall (food courts). I also purchased a bread, small pack of jam for breakfast, couple of small milk packets and some cookies (which I like very much ). In my children hood, teenage I like the chocolate very much but now due to the severe impact of these on my teeth. Suffered from teeth pain and overhauling of teeth I have decided to cut down the chocolates to save my teeth for my further life. Some candy and packet of the bubble I also bought. It put extra weight on your luggage but as there is no limitation for bag weight in carrying train so no worries. Also for 17 hours journey, you must at least purchase some handy things. Charged your mobile so that whole journey can use with the smartphone but as your know smartphone are dumb in the battery. But in the old days Nokia 3310 and similar like phone work on for about 3-4 days normal battery timing. They drain it very fast but train coach has 120VAC socket in it for charging. You can keep battery bank (2000AH) will be sufficed for this purpose if you are so much conscious about it.

 I reached the railway station through my car. My brother drops me at the railway station and say good wishes for my journey which will continue including this 2 days plus six months.


Continued Wait for next episode. Thanks.