PSO required to pay Rs 1.75 billion demurrage to PNSC: National Assembly panel informed

Pakistan State Oil is required to pay Rs 1.75 billion to Pakistan National Shipping Corporation (PNSC) on account of demurrage, claims PNSC management. Chairman PNSC Arif Ellahi informed National Assembly's Standing Committee on Ports and Shipping that the issue of outstanding dues is likely to be resolved with the appointment of Managing Director PSO from next month. He said there is a dispute between the two organisations on demurrage outstanding amount.
The committee decided to take up the issue of outstanding dues between PSO and PNSC in the next meeting after the appointment of MD PSO. Ministry of Commerce and Petroleum & Natural Resources would also be invited. Ellahl briefed the committee that PNSC was an autonomous body working under the Ministry of Ports and Shipping. He said that the PNSC had been engaged in sea transportation trades, ie, dry bulk cargo, liquid bulk cargo and non-vessel owning common carrier (NVOCC) services and slot charter services. He also complained that the Finance Ministry has not provided funds for Marine Academy Karachi. The committee recommended that the funds for Marine Academy may be released by the Ministry of Finance on priority basis.
The meeting was informed that the main functions of the corporation were to provide and further develop safe, efficient, adequate, economical and properly co-ordinated shipping services, coastal as well as international and engage in all forms of activities connected with or ancillary, incidental or conducive to shipping. The PNSC owned tankers under a Contract of Agreement (CoA) with four (4) refineries PARCO, PRL, NRL and Byco. The corporation now has a fleet of four (4) modern double hull tankers and undertakes business internationally. With the beginning of 2013, PNSC has started transporting fuel oil and white oil for PSO under a CoA with PSO.
PNSC has not only increased the total freight movement but also ventured in white and black oil transportation. These commercial moves have enabled PNSC to move out of cyclic profit/loss to continued profitability since 2001 onward. Profit after tax for fiscal year 2015 nine months ended on March 30 2014 was Rs 1.051 billion. The cargo movement of PNSC has substantially increased. In year 2000, PNSC transported 3.95 million tons of cargo, which was 10.73 percent of Pakistan's total seaborne trade that stood at 37.60 million tones. In fiscal year 2014, PNSC transported 17.91 million tons of cargo which is 26.43 percent (highest lifting since 1979) of the country's total sea trade that stood at 67.77 million tons.
The meeting was attended by Haji Akram Ansari, Sohail Shoukat Butt, Choudhry Salman Haneef, Mehar Ishtiaq Ahmad, Seema Mohiuddin Jameeli, Shaheen Shafiq, Ms Roomina Khurshid Alam, Pir Muhammad Aslam Bodla, Khalil George, Mir Aarnir Ali Khan Magsi, Lal Chand Malhi, Muhammad Jamal-ud-din, Mir Aijaz Hussain Jakhrani and Malik Aamir Dogar.