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.
Tuesday, August 16, 2016
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
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