The Pakistan National Shipping Corporation (PNSC) plans to expand its operations for dry bulk cargo transportation, mostly for public sector entities, and reduce reliance on liquid segment like petroleum products due to the changing global shipping dynamics, reports WealthPK. According to its annual report, the PNSC seeks to reduce its dependence on the tanker segment by expanding dry bulk operations, particularly by securing long-term contracts, especially from the public sector entities.

The report says Pakistan’s total seaborne trade volume declined to 82.95 million tons in the previous fiscal year compared to 106.82 million tons in FY22. Of the total, the PNSC transported 13.06 percent (10.83 million tons) in FY23 compared to 11.21 percent (11.97 million tons) in FY22. The corporation strives to penetrate new markets domestically, such as container feeder service (running small ships to transport containers to and from large ships parked away from berths) and palm oil transportation.

It notes that the global oil product shipping is expected to experience a double-digit growth in 2023, while tonnage demand will increase by 4.0 percent only. This trend is also influencing crude oil trade and, to a lesser extent, impacting dry bulk shipping. The share of dry bulk cargo stood at 17 percent, while the remaining 83 percent was held by liquid cargo in the previous fiscal year ending June 2023.

As per the report, the PNSC has set up a subsidiary to provide stevedore services of cargo loading and unloading to and from ships, and “aims to capitalize on the opportunities in the NVOCC (non-vessel operating common carrier) and slot business by targeting public sector entities.” It mentions that the PNSC aims to meet the cargo carriage requirements for Pakistan’s tankers, with the specific target of transporting up to 40 percent of clean petrochemical products imported into the country. The corporation was able to secure a contract from Shell Pakistan for international transportation of its cargo.

“The PNSC embarked on a strategic endeavour to expand its operations into the marine service business, a key focus being stevedoring and management of essential maritime assets. To facilitate this expansion, the corporation has established a dedicated subsidiary, namely Pakistan Marine and Shipping Services Company (Private) Limited (PMSSC), the report says. “After obtaining the necessary licence from the Karachi Port Trust (KPT), the PMSSC is now fully equipped to undertake stevedoring operations,” it said, adding, “The PMSSC has also ventured into agency operations for prominent entities, including the Trading Corporation of Pakistan and other lines.”

Freight charges dropped substantially in the year under review compared to Covid-19 times when the charges skyrocketed due to lockdown and stuck containers in many countries. It achieved the highest-ever profit after tax of Rs29.99 billion in FY23, an increase of 431 percent as compared to last year, when it earned net Rs5.65 billion. During the year, the impairment loss on receivables from PSO amounted to Rs575 million whereas the finance cost increased due to the rise in Kibor (borrowing cost) and loans acquired for procurement of vessels.

The corporation plays a vital role in the global shipping industry with its diverse and effective marine assets. It offers dependable and efficient shipping services for Pakistan’s and overseas seaborne trade. It also maintains honest and trustworthy relationships with its customers, partners, and employees. It protects the interests of its stakeholders and helps improve the national economy, society, and environment.

Credit: Independent News Pakistan (INP)