PNSC Monthly Newsletter September - 2015 Volume 7 PAKISTAN NATIONAL SHIPPING CORPORATION OUTLOOK INSIDE THIS NEWSLETTER Pakistan National Shipping Corporation (PNSC), is a Commercial & Financial National Flag carrier enjoys a global presence in the 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 National Ports and Shipping imports and exports and earns most needed foreign 2 News exchange for Pakistan. PNSC fleet is a mix of double hull Aframax tankers, Major Events of the Month 3 Panamax, Supramax, Handymax and Handysize bulk Quarterly Performance carriers, all of modern vintage, having a total deadweight 3 FY 2015-16 carrying capacity 681,806 metric tons. PNSC transports all types of dry and liquid bulk cargoes on several geographical Global Shipping Updates 4 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 September 2015, PNSC lifted 913,256 metric tons liquid and 67,380 metric tons Break Bulk/Bulk cargoes. PNSC also provided Slot/NVOCC services and transported 242 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 September 2015 was PKR 860.981 million through freight on lifting of Liquid Cargo, and PKR 191.406 million against freight on lifting of Dry Cargo. In total monthly revenue of PNSC was PKR 1052.387 million. BUSINESS DEVELOPMENT During the month, Chairman PNSC met with top management of renowned organizations & exchanged views on mutual cooperation and business development: • Mr. Imran ul Haque, MD (PSO) • Faysal Islamic Bank Officials • JICA Officials • Economic Team from US Embassy • MD Maersk • Senator Islamuddin Sheikh • Mrs. Riffat Masood (Consul General Chairman PNSC presiding a of Pakistan to Los Angeles) Chairman PNSC presenting souvenir Chairman PNSC presenting shield to meeting with Faysal Islamic Bank to JICA officials MD Maersk officials regarding loan swap PNSC Monthly Newsletter September- 2015 Page 2 NATIONAL PORTS & SHIPPING NEWS Defence Day On account of 50th Defence Day of Pakistan, Honorable Federal Minister for Ports & Shipping Senator Kamran Michael along with the Federal Secretary Ports & Shipping Khalid Pervez, Chairman KPT and Commandant Pakistan Maritime Academy visited and laid wreath at Quaid-e-Azam mausoleum on 6th September 2015. Celebration of Raising Day at Pakistan Maritime Academy The Pakistan Marine Academy (PMA) celebrated the ‘Raising Day’ for the first time on 3rd September 2015 since its establishment. To celebrate this day, a ceremony was held at the PMA located on Hawke’s Bay Road. Speaking at the ceremony as the chief guest, Honor- able Federal Minister for Ports and Shipping Senator Kamran Michael said that since the inception of the Pakistan Marine Academy, the efforts of the commandants and officers have remained persistent for the development and progress of the academy in the maritime sec- tor. “The Pakistan Marine Academy has contributed significantly to the development of maritime sector of the country,” said Senator Kam- ran Michael, he stated that he is really proud of the Pakistan marine academy because “it offers training to cadets in the fields of nautical and marine engineering and conducts the mandatory seafarers training and certification as well as post-sea specialized courses every year. A souvenir was presented to Senator Kamran Michael by Commodore Akbar Naqi SI(M), Commandant PMA. Minister for Ports & Shipping Senator Kamran Michael along with Commandant PMA, Chairman KPT and The Honorable Minister for Ports & Shipping DG Ports & Shipping Karachi on the occasion of Raising Day at Pakistan Marine Academy, Karachi presenting souvenir to Commandant PMA Celebration of World Maritime Day World Maritime Day (WMD) was observed internationally during last week of September under the auspices of International Maritime Organization (IMO). This year the day was themed as “Maritime Education and Training”. In context of this, National Centre for Maritime Policy Research (NCMPR), Bahria University celebrated World Maritime Day at Karachi Campus on 21 September 2015. By taking advantage of this important day for creating public awareness, NCMPR organized a Maritime discourse on the theme “Maritime Trade and Economy of Pakistan.” Federal Minister for Ports and Shipping Senator Kamran Micheal graced the occasion as Chief Guest. Mr. Arif Elahi, Chairman PNSC and Mr. Moazzam Khan, Technical Advisor, WWF-Pakistan contributed as key note speakers. Director General NCMPR, Vice Admiral Syed Khawar Ali, HI(M) thanked the worthy sponsors and participants of the event. Prominent dignitaries from trade and industry, stakeholders from maritime sector, naval officers, intellectuals, researchers and students were also present on the occassion. To celebrate the World Maritime Day, Pakistan Navy planned a wide range of activities to acquaint the masses of its significance, raise maritime awareness and highlight Pakistan Navy’s contributions towards sustainable development of Pakistan’s maritime sector. Numerous activities were arranged to highlight the importance of maritime education and training in achievement of better standards of training certification and watch keeping. A number of educational and awareness raising activities including colorful Maritime Gala at Maritime Museum Karachi were arranged. Executive Directors PNSC and other officials of PNSC Minister for P&S, Chairman PNSC and DG NCMPR Minister for Ports & Shipping presenting souvenir to attending the World Maritime Day Conference cutting the cake at Bahria University, Karachi. Chairman PNSC at Bahria University, Karachi PNSC Monthly Newsletter September- 2015 Page 3 MAJOR EVENTS OF THE MONTH Fire Extinguishing Drill at PNSC Headoffice A successful fire-extinguishing drill was conducted at PNSC building on 18th September 2015. Mr. Arif Elahi, Chairman PNSC and Brig (Retd) Rashid Siddiqui, Executive Director Admin, supervised the drill in which 32 fire fighters participated. After evacuation of the people the fire fighter quickly accessed inner parts of the building. During drill, the fire fighters quickly restored the water supply from the basement storage of this building and extinguished the demonstra- tion fire. Ambulances were called to shift the wounded to hospitals. The Chairman PNSC showed profound satisfaction and said that the drill was a success and suggested that such drills should be conducted on quarterly or bi-annual basis so that shortcomings are traced and do away properly. He also said that such drills will help to keep up the moral of PNSC and people’s confidence in the organization. The Honorable Chairman PNSC exchanging views Upon the successful completion of the drill, people People waiting for the drill to finish, evacuation from with Brig (Retd) Rashid Siddiqui, ED Admin during are getting back in to the building whereas fire fight- the building at the start of drill whereas arrangement fire extinguishing drill at PNSC Head Office ers are busy in setting the pipes to release water of ambulance to move the wounded to hospital HAJJ Scheme 2015 Farewell to Retired Officers HAJJ MUBARAK 2015 (1436 AD) Chairman PNSC presented souvenir to In year 2015, PNSC provided full funding support Mr. Kamal Ahmad, GM (Maintenance, through open balloting program to six employees Repair & Spares) and Mr. Abdul Latif who proceeded to perform HAJJ. This was in con- Chandio, Manager (Dry Cargo Chartering) tinuation of its commitment to its employees. for their dedication and endeavors for the success and growth of the organiza- tion during their service. Souvenirs were presented in a ceremony held in PNSC Head office on 07th September 2015. A tea party was also arranged in honor of the retired employees. Chairman presenting souvenir to Mr Kamal Ahmad QUARTERLY PERFORMANCE FY 2015-16 PNSC Monthly Newsletter September- 2015 Page 4 GLOBAL SHIPPING UPDATES Tanker Market Could Face Glut of Over Tonnage Amid a tanker market bonanza, ship owners have been pouring money into new buildings over the course of the past six months. This could be dealt with, thanks to robust demand and increasing ton-mile averages. But, it can become ever so more difficult to avoid a potential oversupply of tonnage, if lower demolition activity remains to be the case. Sales of tanker tonnage for demolition in the MR and larger segments have dwindled since the start of the year, thanks to sustained earnings strength and a collapse of Indian subcontinent demolition prices. Measured by total deadweight capacity, demolition sales activity was down by 77% while the average subcontinent $/ldt price was off by 30% on y/y to $340 as compared with last year. It was noted that low demolition prices also had their impact, the average VLCC unit saw its demolition value drop by $5.6m, or 30%, from a year ago. (Reported in Hellenic Shipping, 28th September 2015) Baltic Dry Index Rises 17% in Sept, But Provides Little Reason to Cheer The BDI rose 17.5 per cent during September, sparking speculation that a recovery in commodities could be around the corner. Since Janu- ary this year, the index, a measure of shipping costs for commodities, was up 21 percent. Analysts say the spike was due to an increase in iron ore imports by China. Iron ore prices in that country had risen 28 per cent since July. While some analysts say China was continuing to buy select commodities, the majority view on global commodities trade remains bearish. The index, analysts said it was unlikely to witness any major uptrend in the coming months, owing to a bleak outlook for the demand for commodities from China, the world’s largest im- porter of raw materials. “China is the main driver for dry bulk. But with its economic data indicating a slowdown, we continue to remain negative on BDI and see it move only in a limited range.