PNSC keeps moving forward

Pakistan National Shipping Corporation (PNSC, the Corporation) is Pakistan's national flag carrier. The Government of Pakistan holds a majority stake in the equity of the Corporation. PNSC operates in the international market and competes commercially. It is a testament of Pakistan's self-reliance in the field of commercial maritime and earnsvaluable foreign exchange for the country through managing a current fleet of nine merchant ships.
PNSC is an autonomous body established under PNSC Ordinance, 1979.The functions of the Corporation include the development of safe, efficient, economical and coordinated shipping services, coastal as well as international, and to engage in all forms of activities connected with or ancillary, incidental or conducive to shipping in Pakistan.
In performing its functions, the Corporation emphasizes careful regard to sound business principles and practices and act so as to ensure that ocean transportation is developed to the greatest possible advantage in the interests of sea-borne trade of the country.PNSC is engaged in following three sea transportation trades:
--a Dry Bulk Cargo,
--b Liquid Bulk Cargo (crude &white oils) and
--c Slot / NVOCC services.
Recent Achievements
While rendering valuable service to the nation, PNSC continues to move forward on the strength of its performance thus highlighting the Corporation's position as a strategic national asset. Some of these significant achievements are as follows:
--Long term credit rating of PNSCupgraded to "AA" in February 2017.
--Terms of loans obtained from commercial banks have been renegotiatedresulting in potential interest costs savings of approximately Rs 426 million over the period of loan.
--Successfully convinced the Federal Government to notify incentive of zero percent duties and taxes till 2020 on the procurement of vessels under Pakistani flag.
--Strict financial management resulting in record results as detailed in the accompanying graphs.
Future Plans
Moving from strength to strength, the Corporation is alert to the local and international external challenges faced by global trade in general and the shipping industry in particular. Cognizant to the ever changing situation, PNSC's strategic direction is aimed towards the following goals:
--Increase tonnage by inducting 3 additional tanker vessels within the next 6 months.
--Further reduce operational costs to meet international standards.
--Improve efficiencies in asset utilization through zero layup time.
--Diversification into marine services activities that directly augment shipping operations.
--Human resources development.
Strategic Projects
The following projects have been initiated by PNSC's management and these are currently at various stages of completion.
--Fleet Development Plan 2025.
--Construction of transit oil storage at Karachi.
--Marine services for providing tuggage, pilotage and dredging.
--PNSC's Regional Office at Gwadar is now operational to facilitate local trade.
--Construction of marine workshop at Gwadar in support of CPEC related activities.
As mentioned above, in view of its business spectrum, PNSC aims toexpand its business portfolio by embarking on its fleet development plan and procuring two LR-1 product tankers and an additional oil tanker in the current fiscal year. PNSC also plans to diversify into marine services with an aim to support its shipping operations and as a move to support these critical operations at Pakistan's ports. This diversification strategy is expected to yield improvements in PNSC's operational capability and towards reducing the cost of doing business at Pakistan's sea ports. These decisions related to the expansion and diversification of PNSC's business interests arecritical for Pakistan's maritime industry especially in the back drop of CPEC and the development of Gwadar Port.
As a testament towards confidence in the Corporations management, the Government of Pakistan has approved three projects proposed by PNSC under the Public Sector Development Program (PSDP). These projects relate to the acquisition of land for construction of oil storage at Gwadar, acquisition of land for the construction of marine workshop at Gwadar and the construction of transit oil storage at Keamari in Karachi.
By and far, the commercial performance of the global shipping industry has remained subduedduringrecent years. In the year 2016, international shipping circles witnessed an unprecedented spate of mergers and acquisitions amongst the biggest names in global shipping and the year also saw a major shipping firm file for bankruptcy thus tossing global shipping into a tail spin. Given its nature of operations, PNSC could not remain insulated from these global events. Despite the non-conducive environment, the Corporation remained resilient and emerged as one of the few shipping lines globally to have successfully weathered the storm.
PNSC raised the bar yet again by declaring profit after tax of Rs 2,477 millionfor fiscal year 2016-2017, an increase of 7% over the corresponding years profit after tax of Rs 2,323 million. This is the highest profit after tax achieved by the Corporation since incorporation and it comes despite the global turmoil within the industry. As a gesture of thanks to the confidence bestowed by the Corporations equity holders, PNSC has undertaken to distribute 20% dividend amongst its shareholders and to plough back the remaining profits for investment into the aforementioned and other projects currently under implementation and evaluation by PNSC, thus ensuring sustainable future growth.
PNSC is a stakeholder towards ensuringPakistan's prosperity and takes its responsibility of being an accountablecorporate citizen very seriously. PNSC provides training opportunities to the young generation of seafarers and contributes towards helping those in need at times of natural calamities and disasters. PNSC participates actively towards various welfare and charitable causes in support of the Government of Pakistan. PNSCendeavors to do its best to discharge its national responsibilities and to develop shipping within Pakistan for the good of the people of Pakistan. Please visit www.pnsc.com.pk to learn more about PNSC and for review of its latest audited financial statements for 2017 and the latest half yearly report up to December 2017.