Responding to a presentation by the Karachi Shipyard and Engineering Works (KS&EW) Managing Director, Vice Admiral Iftikhar Rao, the other day, President General Pervez Musharraf is reported to have stressed need for concentration on shipbuilding, besides repairs, in shipyards with bigger docks for larger vessels, saying shipbuilding industry could become a great national asset due to its potential, thereby contributing to the development of national economy.
Notably, he also approved the formation of a steering committee for the implementation of its major projects. This, obviously, had reference to the Rs 2.8 billion Ministry of Defence project of Installation of Ship Lift and Transfer System at KS&EW, presented to a CDWP meeting on April 30, and which referred to the ECNEC, where it seems to be still lying.
In his presentation, the KS&EW chief had stated that shipbuilding was an attractive industry for developing nations, because shipyards were labour-intensive and employed a large number of workers, for a wide range of ancillary industry.
It was also noted that since 2003, the number of orders at KS&EW had doubled from 115.5 dwt to 300 dwt, and that the total anticipated receipts were Rs 965 million. According to Vice Admiral Rao, next 50 years would be marked with such a heavy demand for new ships as to witness an increase to around 90 million dwt a year by 2055.
The oldest heavy engineering complex of the country, KS&EW, established as a project of Pakistan Industrial Development Corporation, commenced commercial production in 1956. It has built over 430 vessels not only for Pakistan but also for other countries, including China, Saudi Arabia, Germany, Iran, UAE and Belgium.
Equipped to build all types of marine craft of up to 26,000 dwt - passenger and cargo ships, oil carriers, bulk carriers besides tugs, dredgers, hopper barges, ferries, fishing trawlers, port utility vehicles, etc, it has also built missile boats, floating dock, tug and other vessels including submarine, for the Pakistan Navy, KS&EW has also repaired over 5,000 vessels, about half of which were foreign.
But as ill luck would have it, after a boom in the 1970s the shipbuilding process was completely changed by the Japanese builders. Instead of building a ship as a whole, it was built in parts at different places and assembled in the shipyard.
This cut down the building time by as much as 75 percent. This change in technology, forced redesigning of shipyards to accommodate heavier cranes of 300 tonnes instead of 25-30 tonnes. In essence, KS&EW then became redundant for building new ships.
And as larger and larger vessels were launched it could not even handle their repairs. Since then it has been reeling from severe financial crises for want of shipbuilding and ship-repair works. As orders started drying up over the years, the government first forced to PNSC to give them business along with small orders from the KPT for tugs and pilot boats.
It was the compulsion of such circumstances that made KS&EW to diversify its activities to general engineering. A blessing in disguise, it helped it emerge as one of the few heavy machinery manufacturers of the country, enabling it to undertake a wide variety of engineering and structural works for oil refineries and storage installations, besides engineering workshops, cement and sugar plants.
KS&EW now offers complete sugar plants on turnkey basis and has been instrumental in setting up a number of sugar plants. Little wonder, 80 percent of the machines required for a sugar plant are now manufactured by the KS&EW.
This was how it became the first organisation in Pakistan to design, manufacture and install industrial boilers supplying over 100 of them so far. Diversification, notwithstanding, the KS&EW is in the process of regaining its lost glory as the only and premier shipyard - the second in any Muslim country besides Turkey.
Again, as part of its brave exercise for survival in a competitive environment, it has succeeded in substantial reduction of monthly operating expenses. At the same time, it has managed to earn increased average revenue to slash financial deficit.
As part of its strategy to increase its earnings, the KSEW focused attention, a few years ago, on induction of modern machinery to improve its dry docking facility, including addition of a synchronised lifting system, apparently, the one that figured in the list of projects the CDWP referred to the ECNEC.
Though heavily capital intensive, it can considerably help more efficient and quicker handling of increasing flow of ship-repair and shipbuilding works. Of course the government has provided extensive support to revival of the KS&EW, it will be in the fitness of things for it to ensure against procedural delays in meeting its development requirements.