Pakistan plans shipping fleet expansion, entry into commercial shipbuilding

Pakistan will expand its national shipping fleet by 50% and enter into commercial ship-building to increase the maritime self-reliance, the country’s maritime minister told traders on Tuesday.

In a meeting with businesspersons at the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Junaid Anwar announced that the fleet of Pakistan National Shipping Corporation (PNSC) will be expanded from 10 to 15 vessels within the next two to three months.

He added the government is close to finalizing a deal to acquire additional ships.

“We are not only expanding our fleet but also planning to boost the ship-breaking industry and enter commercial shipbuilding to strengthen Pakistan’s maritime economy,” the minister said.

Earlier this month, PNSC said its two subsidiaries — Karachi Shipping (Pvt.) Ltd. and Lahore Shipping (Pvt.) Ltd. — have signed an agreement to acquire two Aframax-class oil tankers.

The vessels — MT LORAX and MT NAFSIKA — have deadweight tonnages (DWT) of 109,990 and 112,051 tonnes, respectively, the company said in a notice to the Pakistan Stock Exchange (PSX).

Traders’ concerns

Traders have accused international shipping lines of exploiting businesses by charging excessive exchange rates and arbitrary shipping fees, calling for the establishment of a regulatory authority to oversee their operations.

“The shipping lines are applying an exchange rate of PKR 296.20 per US dollar while fixing freight charges at their own whim,” said local traders, adding that the absence of regulation has allowed foreign shipping agents to dictate unfair terms.

Businessmen also demanded the construction of a dedicated parking area for the South Asia Pakistan Terminals (SAPT) at Keamari to help reduce severe traffic congestion on contingency roads near the port.

They said the process of clearing a single container takes four to five days in Pakistan, while in other countries it is completed within hours. “We need efficiency and accountability in shipping and port operations,” one trader remarked.

Industrialists also expressed frustration that allottees of industrial plots at Port Qasim have been facing issues for over 22 years due to administrative hurdles.

The minister assured that the government would soon arrange a meeting with stakeholders to resolve the matter.