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Monthly Newsletter October - 2015 Volume 8

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Monthly Newsletter October - 2015 Volume 8 PNSC Monthly Newsletter October - 2015 Volume 8 PAKISTAN NATIONAL SHIPPING CORPORATION OUTLOOK INSIDE THIS NEWSLETTER Pakistan National Shipping Corporation (PNSC), is a National Flag carrier enjoys a global presence in the Commercial & Financial 1 Highlights shipping world with a fleet of nine (09) ships. It undertakes business operations in an internationally competitive Business Development 1 environment, competes even for transportation of national imports and exports and earns most needed foreign National Ports & Shipping exchange for Pakistan. 2 News PNSC fleet is a mix of double hull Aframax tankers, Panamax, Supramax, Handymax and Handysize bulk Major Events of the Month 3 carriers, all of modern vintage, having a total deadweight carrying capacity 681,806 metric tons. PNSC transports all Global Shipping Updates 4 types of dry and liquid bulk cargoes on several geographical routes covering almost entire world. PNSC undertakes three Business News 4 main functions: • Fleet Maritime Operations • Real Estate Management of Three Commercial Buildings • Marine Workshop (Repair & Maintenance of ships) C OMMERCIAL AND FINANCIAL HIGHLIGHTS During the month of October 2015, PNSC lifted 1,028,420 metric tons liquid and 108,348 metric tons Break Bulk/Bulk cargoes. PNSC also provided Slot/NVOCC services and transported 316 TEUS during the month. All the five Dry bulk carriers remained fully employed on trip/voyage/time charter worldwide. Revenue generation for the month of October 2015 was PKR 797.001 million through freight on lift- ing of Liquid Cargo, and PKR 290.837 million against freight on lifting of Dry Cargo. In total monthly revenue of PNSC was PKR 1087.838 million. BUSINESS DEVELOPMENT During the month, Chairman PNSC attended various meetings and met with top management of renowned organizations & exchanged views on mutual cooperation and business development: • Mr. Nouman Ansari, CEO Faysal Bank. • Mr. Khurram Shahzad, Director MCB-Arif Habib Investment. • Attended the meeting of ABS Middle East Regional Committee. • Attended the meeting with Interocean Shipping at Singapore . • Attended 13th Annual Middle East & Africa Advisory Technical Committee Meeting in Dubai arranged by Lloyds Register EMEA. Chairman PNSC presenting souvenir to CEO Faysal Bank PNSC Monthly Newsletter October-2015 Page 2 NATIONAL PORTS & SHIPPING NEWS Ferry service for pilgrims to Iran planned: Minister The government is setting up a company for introducing a ferry service for people intending to visit holy places in Iran. This was stated by federal Minister for Ports and Shipping Senator Kamran Michael at a meeting held at the PNSC building on 29th October 2015. The minister said two passenger ferries had been shortlisted for the operation. The ferry service will operate between Karachi—Chabahar (Iran) and Karachi - Ormara including Gwadar. Further, he said the ferry service would reduce the cost of journey and would be an alternate route, more secure than road travel. Mr Kamran Michael, Federal Minister Ports & Shipping said around 250 to 400 passengers’ capacity ferry with a speed of 28-30 knots per hours would reach Chabahar in 14 hours. The service will also be used for the haulage of cargo between Karachi and Gwadar and will strengthen the overall shipping industry of Pakistan. The minister invited suggestions and rec- ommendations from representatives of the private sector shipping industry who attended the meeting. The minister said formation of the company — Makran Ferry Service Company Ltd — would be discussed by an inter-ministerial meeting to be convened in Islamabad soon. Senior officials of the ministry, chairmen of PNSC, KPT and PQA, DG Ports and Shipping, Com- mander Karachi (Pak Navy) and officials of Immigration, FIA, Customs and Anti-Narcotics Force Federal Minister for Ports & Shipping chairing high level ferry attended the meeting. (Reported in DAWN, 30th October 2015) meeting at PNSC, Head Office, Karachi. Pakistan EEZ excluded: CGPCS announces new revised limits of piracy HRA Contact Group on Piracy off the Coast of Somalia (CGPCS) has announced that new revised limits of the piracy High Risk Area (HRA) have been declared by the shipping industry which will be effective from December 01, 2015. The revision in the limits of HRA puts almost the entire Exclusive Economic Zone (EEZ) of Pakistan out of HRA and as a result the seaborne trade, fish- ing activity and other research and exploration activities will be benefited. The shipping from the Gulf area and the Far East to Pakistani ports shall now be outside the HRA which will result in elimination of extra insurance and security charges etc being incurred since 2010. Inclusion of Pakistan's EEZ in HRA in 2010 had been opposed by Pakistan. Pakistan Navy in collabora- tion with the Ministry of Foreign Affairs have made concerted efforts to exclude Pakistan's EEZ from HRA. Pakistan's argument was supported by the fact that no incidents of piracy had oc- curred in Pakistani EEZ due to Pakistan Navy's vigilance. Moreover, it was highlighted that Pakistan Navy had gone a step ahead and was contributing its ships to counter piracy in the entire Arabian Sea and had also commanded counter piracy Task Force CTF 151 for six times to counter the menace of piracy around the Horn of Africa. Pakistan Navy remains committed to keep the high seas free from piracy and other Maritime crimes thereby ensuring safety of the seafarers and free flow of the trade through the shipping lanes passing through the region. (Reported in Business Recorder, 11th October 2015) Oil spill control drill held off Gadani beach Pakistan Navy in coordination with the Pakistan Maritime Security Agency (PMSA) conducted a environment-friendly practical exercise Barracuda-VI in the North Arabian Sea near Gadani on 28th October 2015. The exercise, conducted to rehearse oil spill control procedures and contingency mechanisms, became the need of the hour after the catastrophic and massive oil spillage at Karachi by MV Tasman Spirit in 2003. Thereon the National Marine Disaster Contin- gency Plan (NMDCP) came into action. Pakistan Navy looks after the marine pollution aspects in Pakistan waters, including ports, harbours and the exclusive economic zone. Pakistan Na- tional Shipping Corporation along with Units of Pakistan Navy, PMSA, National Disaster Man- agement Authority, Provincial Disaster Management Authority, Ministry of Petroleum and Natural Resources, Karachi Port Trust, Port Qasim Authority, Gwadar Port Authority, National Institute of Oceanography, Pakistan Environmental Protection Agency, the Oil Companies Advisory Committee, the commissioner of Kara- chi, etc took part in the exercise. (Reported in DAWN, 29th October 2015) Karachi Port cargo handling rose 14pc in 1st Quarter of FY 2015-16 The Karachi Port handled a record tonnage of cargo during the first quarter (July-September) of this fiscal year, showing a growth of 14 per cent at 12.39 million tons compared to 10.775m tons a year earlier. The port handled 5.899m tons of dry general cargo as against 5.028m tons in the same period a year ago Handling of dry bulk cargo rose 3pc to 2.428m tons from 2.358m tons. The liquid bulk cargo grew 17pc during the quarter under review as the port handled 3.963m tons of POL (petroleum, oil and lubricants) and other liquid cargoes as against 3.389m tons. The port handled 80,255 TEUS of imports in July, 80,978 in August and 75,514 in September. Export containers handled were 57,774 TEUs in July, 83,057 in August and 77,345 in September. The movement of ships also remained fairly brisk as 155 vessels called at the port in July, out of which 58 were container ships, 26 bulk cargo carriers, 25 general cargo ships and 46 oil tankers. During August, 60 container ships called at the port, 20 bulk cargo carriers, 30 general cargo vessels and 44 oil tankers. Similarly, the port in September handled 62 container ships, 16 bulk cargo ships, 28 general cargo vessels and 51 oil tankers. (Reported in DAWN, 29th October 2015) PNSC Monthly Newsletter October-2015 Page 3 China to construct $2.5 billion Gwadar In a positive bid to cope with the bourgeoning energy crisis, the process to award the contract of $2.5 billion to Chinese state owned company China Petroleum Pipeline Bureau (CPPB) for erecting LNG terminal at Gwadar and laying down 711 kilometers long and 42 inches diameter pipeline from Gwa- dar to Nawabshah will be completed in November this year. Both the compo- nents of the project will come on stream in December 2017. To this effect, the technical bid opened as per the tender toeing the spirit of PPRA Rules. The Chinese company will not only construct the LNG terminal with a capacity to handle 500 million cubic feet gas per day with modern floating re-gasification and storage unit (FRSU), but also lay down 711 kilometers pipeline from Gwa- dar to Nawabshah with a capacity to carry 1.5 billion cubic feet gas per day. Both the components of the project will cost $2.5 billion whereas Chinese company will provide 85 percent investment and the government of Pakistan will provide 15 percent. The Chinese company will manage the loan from China Exim Bank and Pakistan will pay off the loan in 20 years’ time from the revenue of the project. Moreover, the Chinese company will be bound to get 30 percent component of the total project completed through Pakistani companies which are to be ap- proved by the Pakistan Engineering Council (PEC). Adding to that Pakistan’s security agencies will be providing security to both LNG termi- nal and the pipeline. However, for the inside of Chinese officials and workers camp, Chinese security agencies will be responsible for the security. (Reported in The News, 1st October 2015) MAJOR EVENTS OF THE MONTH 37th Annual General Meeting of PNSC Shareholders 37th Annual General Meeting of PNSC shareholders was held on 28th October 2015 at Navy Welfare Center Karachi.
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