Infrastructure & Transport News

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Rs 5.79 billion Hyderabad-Mirpurkhas Carriageway: Sindh government signs concession agreement with Korean firm

KARACHI (November 12 2009): The Sindh government on Wednesday signed a concession agreement with a Korean firm, Deok Jae Construction (Pvt) Ltd (DJC), for the construction of Hyderabad-Mirpurkhas dual carriageway at a cost of Rs 5.793 billion.

Sindh Secretary for Works and Services Mukhtar Ahmed Soomro and KIN of DJC inked the agreement at Chief Minister House during a Concession Agreement-signing ceremony in the presence of Chief Minister Sindh Syed Qaim Ali Shah, Minister for Fisheries Zahid Bhurgari, Advisor to CM on Investment Zubair Motiwala, Chief Secretary Sindh Fazal ur Rehman and others.

Addressing the ceremony the Chief Minister said the day was very important not only for Sindh, but for the entire country, as its implementation would attract foreign investors to participate in other projects. He said through following latest trends so far invested, the completion time for the project could be reduced from 24 to 18 months. On the occasion, KIN of DJC said his company had a vast experience of 50 years in the technology of road construction and road sector projects.

The representatives of Deok Jae, led by KIN, met Chief Minister Sindh Qaim Ali Shah and apprised him about various achievements of their firm. Earlier, Sindh Finance Secretary Fazalullah Pechuho and Special Secretary Finance Naheed Shah Durrani briefed a high level meeting chaired by the Chief Minister on Hyderabad-Mirpurkhas Dual Carriageway project at Chief Minister House.

The meeting was told that for the four-lane 62-kms long carriageway, which would have a design life of 20 years, a two-lane highway, passing through Tando Allahyar Town, would also be undertaken besides improvement of the existing two-lane Tando Allahyar Bypass.

The existing eight bridges and 62 existing culverts would also be reconstructed under the BOT arrangement. It was further informed that the total cost of the project would be Rs 5.793 billion and after completion, the company would operate and maintain for 30 years and would return the facility to the government on completion of concession.

The meeting was informed that Pedestrian Crossing Bridge at three locations for Sindh Agriculture University Tando Jam, Toll gates with toll control building (plaza), two Medical Aid Posts with a set of ambulances priority to carry injured to nearby hospitals and two traffic posts will be the project components.

The meeting decided to provide concession at Toll Plaza to the students and teachers of Sindh Agriculture University and the residents of nearby areas. After the briefing, the Chief Minister gave approval to the concession agreement hoping that the project will be completed ahead of schedule. The meeting was attended among others by Sindh Minister for Fisheries Zahid Bhurgari, Advisor to CM on Investment Zubair Motiwala and Chief Secretary Fazalur Rehman.

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‘Infrastructure development bank to be set up’

Monday, 23 Nov, 2009

KARACHI: Governor State Bank of Pakistan, Syed Salim Raza on Monday said the central bank is working on the establishment of Infrastructure Development Bank and Mortgage Refinance Company under public-private partnership for the growth and development of infrastructure and housing sector in the country.

Presiding over a meeting of Private Sector Credit Advisory Council (PSCAC) here at State Bank, the SBP Governor said the State Bank has taken several initiatives for enhancing credit disbursement to under-served segments such as agriculture, SMEs, microfinance, housing and infrastructure.

State Bank is playing its due role to stimulate private sector credit off-take and to turnaround economic slowdown, he said. He, however, stressed upon the private sector to come forward with well thought out project plans so that banks are able to finance them.

‘I strongly believe that growth stimulus has to come from agriculture and SME sectors,’ he added.

Talking about overall scenario of private sector credit disbursement, Raza noted that the decelerating trend of credit disbursement has been arrested and lately disbursements have picked up.

He pointed out that overall decline in credit disbursement was limited to Rs28 billion as of July-November 7, 2009 compared with a decline of Rs81 billion till July-September 2009.

He said the share of private sector credit (PSC) in total credit has declined from 61 per cent at the end of Dec 2008 to 53.3 per cent by 7th November 2009 due to continuous contraction in PSC and enhanced flow of credit to government sector and public sector enterprises (PSEs) during the last three quarters.

Referring to reasons behind low credit off-take, Raza said that prolonged power shortages and poor security situation had an adverse impact on industrial production which grew by a mere 0.2 per cent in July-August 2009. Similarly, decline in exports exhibited some impact of global recession particularly in major export destination like the USA and the European Union which have witnessed one of their worst economic slowdown during last two quarters of 2008 and in the first three quarters of 2009. Textile sector exports earnings have declined by $0.3 billion during July-Sept. FY10.

The SBP Governor noted that gross non performing loans (NPLs) of banks continued to grow to reach Rs421.6 billion (12.36 per cent of total loans) at end September 2009 compared with Rs397.9 billion (11.5 per cent of total loans) at end June 2009 and Rs241.3 billion at end June 2008.

Textile sector holds around 30 per cent of the total NPLs which is much higher than its share in loans i.e. 19 per cent, he added.

Similarly, he pointed out that loans for working capital marked decline of Rs79 billion during first quarter (July-September) of FY10 mainly due to low demand of running finance by small business, food products (Rs33.4 billion) and textiles (Rs10 billion).

Credit retirement by sugar sector against pledge of sugar stocks also supported the decline in advances. However, the declining trend under working capital was somewhat offset by credit under fixed investment, which increased by Rs13.3 billion during July September, 2009. The main sectors that availed fixed investment credit included electricity, gas & water and manufacturing.

Raza said that agricultural credit disbursement is continuously showing increasing trends and during July-October 2009 has increased by Rs5.2 billion or 9 per cent from the corresponding period while credit to SMEs and housing finance exhibited declining trends.

Infrastructure finance grew by 37 per cent mainly due to capital investment in power generation and telecommunication sectors, he said and added deposits and advances of microfinance banks/institutions have increased to Rs5.8 billion and Rs8.9 billion respectively as on Sept. 30, 2009.

The meeting was attended, among others, by representatives of business and industries, agricultural associations, commercial banks besides senior officials of the State Bank.—APP

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PR to purchase 150 locomotives from US, China

KARACHI: Pakistan Railway has finalised a program to buy 150 locomotives including 75 from China and the rest from US.

This was stated by Chairman Pakistan Railway Sami-ul-Huq Khilji in an interview to APP.

He said talks being held with EXIM Bank of China for loan for purchase of 75 Chinese locomotives are expected to finalise this week. He said China has agreed to provide 85 per cent of loan at 2.22 per cent markup.

He said that under the railway’s development plan, PR is procuring over 200 coaches, 500 high speed capacity wagons and another 300 later.

He said that besides induction of rolling stock, the development plan also incorporates improvement of track, IT and human resource improvement, capacity building and merit-based induction.

He hoped that with these measures it would be possible to revive Pakistan Railway on modern lines.

Referring to Karachi Circular Railway project, Khilji said that Japan is providing a loan for this $1.558 billion project at 0.2 per cent markup.

He said that Jetro has prepared the financial and operational model of the project and approved by the ECC.

He said that work is also in hand to deal with the resettlement of the project affectees and Sindh Government has been requested for their resettlement in Jumma Goth.

Khilji said that environment assessment for the project is underway and all these things would be finalised within 5-6 months by a JICA team which is here for the purpose.

Replying to a question about the measures being considered to make Pak Railway a profitable entity, he said work is in progress on the transportation of bulk imports.

He disclosed that to deal with the railway’s real estate assets, an assets management company is being formed.

The PR chairman has conceived an integrated development plan whereby railway employees would be provided constructed houses.

The plan also incorporates the commercialization of railway properties with settlement of title issue with the provincial government.

He said development of railway land for new stations is also on the cards.

Khilji said under the plan outsourcing of railway tickets, freight booking and various sectors are also under consideration.

To a question, he said that increase in railway fares is not under consideration but these would be rationalised.

To another question, Khilji said freight income has registered an increase and railway is increasing the oil movement.

He pointed out that at present railway is operating 4-5 oil specials and it plans to increase their number to 10.—APP

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KCR annual revenue estimated at Rs 9.123 billion

ISLAMABAD (November 28 2009): The annual revenue earning of Karachi Circular Railway Project has been estimated as Rs 9.123 billion, with Rs 4.327 billion rail and Rs 4.8 billion non-rail revenue. Sources said that deducting Rs 2.881 billion operation and maintenance (O&M) cost, annual gross revenue surplus of KCR has been estimated at Rs 6.246 billion.

Out of Rs 6.246 billion, Rs 4 billion would be earmarked for repayment of loan, while depreciation cost has been estimated at Rs 1.6 billion. Rs 0.646 billion has been estimated as total net revenue surplus from the project. The proposed completion period of the project is three years, on commencement by the end of 2010, with $1.457 billion soft loan from Japan and $101.3 billion by Karachi Urban Transport Corporation (KUTC). The loan of donor agency, Jica, @ 0.2 percent mark-up would be repayable in 40 years, including 10 years grace period.

The study for the settlement of encroachers, in consultation with the Jica, is currently underway and is scheduled to be completed by the end of November 2009. About 300 acres land of the Board of Revenue, Sindh, at Jumma Goth, has been identified for the resettlement project of affectees/encroachers.

After completion, the resettlement plan study would be displayed at Jica website prior to WB appraisal mission visit to Pakistan. The loan agreement is expected to take place in July-August 2010 while it is likely that Jica would separately treat the study/design loan so that preliminary work could be completed. The route's preliminary alignment work would be completed by December 30, 2009 while the allocation of 300 acres of land by Board of Revenue

Government of Sindh for RRA is being taken up. They said that Sindh government and City District Government Karachi have signed Terms of References (ToRs) in October, 2009 of the transport study of City of Karachi with JICA. Priority Corridors-1&II will be identified on completion of study while financing and implementation of another study will be carried out for the Identified corridors-I and II by Jica.

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KPT seeks $110m loan for work on three berths

By Amin Ahmed
Friday, 04 Dec, 2009

The Karachi Port Trust needs $220 million for the reconstruction of berths 10 to 17A, which are currently out of service.

ISLAMABAD: The Karachi Port Trust (KPT) is seeking a loan of $110 million from the World Bank for reconstruction of its three berths, from No 15 to 17A.

It is also negotiating for a loan of $5 million for institutional strengthening of the port.

Another loan of $60 million is being sought by the KPT from the International Finance Corporation (IFC) towards construction of berths 10 to 14 which are scheduled to be completed by September 2010.

According to preliminary project description, berths 10 to 17A at Karachi port are currently unfit for service and need reconstruction. The estimated cost of all civil works related activities has been estimated at $220 million including civil works, contingencies and supervision of works.

KPT’s Board has given approval for the IFC loan for which IFC has carried out its internal management review and received approval.

Currently the KPT has substantial cash reserves but needs an overhaul of its finances to improve utilisation of its available resources, to break even operationally, to maintain and develop its common user infrastructure and to keep port charges to a minimum.

Another part of the financial overhaul and restructuring would involve revaluation of KPT assets and preparation of a business plan to detail all its financial and operational plans and strategy going forward.

There are around 30 berths at the East and West wharves.

Of these, over 17 berths are on the East Wharf – from No one to 17A. Berths No five to 17 were constructed during 1955-1960 under a World Bank financed ‘first development project.’

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Rs 230 million bridge added to $150 million PICT infrastructure

KARACHI (December 06 2009): With the opening of a new 330-metre long post-tensioned box girder bridge, constructed by Pakistan International Container Terminal (PICT) at a cost of Rs 230 million, Federal Minister for Ports and Shipping Babar Khan Ghauri on Saturday said, his ministry would not object if the federal government decided to hand over Gwadar Port to the concerned district government in Balochistan.

Further, the volume of private sector investment in the 'Pakistanis-run' container terminal has crossed the $150 million level. Addressing the inauguration ceremony of 'PICT Bridge' along with an eight-lane 'Gate House' here at PICT on Saturday, the minister said his ministry would have no objection if the federal government decided to hand over possession of the Gwadar Port to Balochistan government.

He, however, conceded that the progress at Gwadar deep-sea port had been delayed, specially the hinterland connectivity of the future transshipment port. Ghauri said with help of the US, the government had installed state-of-the-art scanners at Port Qasim and would soon do the same at Karachi Port to make the country's seaborne trade, specially the US-bound cargo, safer.

Out of three container terminals KICT, QICT and PICT, the latter was the one completely owned and run by Pakistanis and growing at a pace faster than its two competitors, he added. He said in the second phase the bridge would be connected to M A Jinnah Road. Lauding KPT and PICT management efforts for undertaking a "remarkable" development at the two ports, The minister said that no fruit of the infrastructure development could be reaped in the absence of peace.

Condemning the terrorist attack on a mosque in Rawalpindi which, he said, had created a sense of paranoia among the masses, he blamed the "political mullas" (clerics) for all such deadly incidents. "Those religious organisations, mosques and madrassahs, which are creating and supporting terrorists, should be made accountable through stoppage of funds and support," he said.

Earlier, KPT Chairperson Nasreen Haque underlined various projects undertaken by the KPT in and outside Karachi Port and said PICT, which made remarkable progress since its inception, was an example of success of the KPT's landlord port strategy. She said despite the recessionary trend prevailing world-wide, comparing previous financial year activities with FY 2004-2005, KPT had ensured gain in container handling, where a growth of 37 percent was registered, taking the figures from .9 million TEUs to 1.249 million TEUs.

According to her, the handling of dry cargo at Karachi Port had increased by 65 percent to 25.36 million tons while total cargo handling had surged by 35 percent. Sharique A. Siddiqui, Director and Chief Operating Officer of PICT, highlighted salient features of the newly built bridge. He said that adding the bridge comprised two carriageways each for imports and exports and having three truck lanes.

It had specially been designed to cater for heavy port traffic loads by using special type steel false work in its construction work. Embankment retaining walls comprise of Keystone Retaining Wall with Geo Grid Membrane System provided by the ENVICRETE and had been used for the first time in Pakistan as a structure component of a bridge, the COO said. Sharique also told the gathering that total investment in PICT was over $150 million.

PICT Chairman Captain Haleem Siddiqui told the ceremony, which was attended by a large number of guests representing various institutions of the ports and shipping industry, that PICT had developed the bridge along with a Gate House to expand its "gate capacity". He said that the bridge, designed by National Engineering Services Pakistan (Nespak), was completed in two years and was unique in its design to cater for the heaviest traffic emanating from the Port.

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General Electric looking for energy and railways projects

ISLAMABAD (December 09 2009): M/s General Electric Company (GE) is reportedly using the influence of a senior officer in the Presidency to get a contract in energy sector projects, sale of 150 locomotives to Pakistan Railways and installation of railway tracks, reveal official documents available with Business Recorder .

Shehzad Arbab, an Additional Secretary in the Presidency is the focal person who is pursuing the relevant Ministries and organisation like Private Power and Infrastructure Board (PPIB) and Railways Board. For this purpose, President Secretariat has forwarded a draft Memorandum of Understanding (MoU) to the key Energy Ministries and Railways for its review, the sources added.

However, it is still unclear who tailored the draft of the MoU and what will be the net worth of the contracts in which the American company is interested. According to the draft MoU, a copy of which has been obtained from the PPIB, it has been proposed that Pakistan and GE will work intensively and co-operatively to identify energy and transportation projects in which the firm will have technologies and solutions suitable to Pakistan, to secure sources of public and privatise funding to facilitate such funding as much as possible, and to facilitate, as appropriate, the ability of GE to participate in such projects.

M/s GE is interested in energy including renewable energy where GE will assist Pakistan in achieving its goal of generating 54,000 MW power by 2020 through diverse energy sources. It has also been proposed that Pakistan and GE will explore expanding the scope of this MoU to encompass other sectors vital to Pakistan's infrastructure and economic development, such as healthcare, water treatment, air transportation and financial services.

According to the draft MoU GE's commitments are as follows:

(a) GE is willing to cooperate with Pakistan to identify the areas of Energy and Transportation (i) those projects currently in progress and;

(ii) those that are being contemplated, on which GE engagement could be helpful;

(2) work with Pakistan to determine a path to meeting its energy goals, with a special focus on wind power and high efficiency gas turbines;

(3) help Pakistan develop its rail transportation system through expert consultations, addition of locomotives and rail signalling systems, and other advancements and solutions that GE can provide in the area;

(4) provide counsel and advice to Pakistan in the areas of energy and transportation where possible, including on such topics as electricity and rail system planning and management, fuel options for power generation, and regulatory and policy frameworks;

(5) assist Pakistan with identifying sources of funding necessary to implement projects in the areas of energy and transportation, including private and public sectors, export credit agencies, multilateral development banks and other international institutions;

(6) provide GE management and leadership training to such Pakistani middle and senior level managers and government officials in the energy and transportation sectors, where possible and as may be agreed;

(7) work with Pakistan to identify and possibly promote export opportunities and related jobs in the energy and transportation sectors and;

(8) localise support of GE products in Pakistan to the extent consistent with prudent business principles, GE business objectives, and Pakistan's economic development strategies.

Pakistan's commitments are as follows:

(i) provide support to the establishment and operation of GE facilities in Pakistan, consistent with Pakistani law and regulations, including the identification and implementation of incentives for GE investment in Pakistan, and help meet crucial infrastructural and policy needs for the successful implementation of agreed projects;

(ii) provide assistance in understanding and complying with relevant Pakistani regulations and policies in the areas of energy and transportation;

(iii) provide support for obtaining and securing funds for projects, including any sovereign guarantees, allow a stable investment climate for capital transfers and present opportunities for potential investors to participate in agreed projects;

(iv) provide assistance in facilitating dialogue between GE and Energy and Transportation ministers and other relevant officials and entities in Pakistan to enable and develop GE's advisory roles in the areas of energy and transportation;

(v) facilitate the issuance of work permits and visas for GE employees and contractors as needed to support the objectives of the MoU; and;

(vi) work with GE to facilitate the engagement of the United States and other governments to support and foster the expansion of commercial ties between Pakistan and GE.

TRANSPORTATION Indicative proposal submitted to Chairman Pakistan Railways on September 25, for 100 Nos 3000 HP and 50 Nos 2000 HP locos, financing through US Exim Bank, 100% Erie built.

GE is of the view that long -term maintenance agreement for proposed 150 locos for 18 years, will help PR have a highly reliable fleet with improved availability that translates to better asset utilisation. According to GE signalling modernisation will help PR increase its capacity achieve its "fast cargo" objectives, in addition to use of modern communications based signalling solutions that will enhance capacity without investing in double tracking.

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Govt to spend Rs 9.6bn for smooth flow of traffic to Afghanistan

By Ijaz Kakakhel

ISLAMABAD: To ensure smooth flow of heavy traffic from Peshawar to Afghanistan and onwards, the government has planned Peshawar Northern Bypass with enhanced expenditure of Rs 9.6 billion, sources told Daily Times here on Friday.

The revised scheme envisages construction of a 32.20 km long, 4 lanes bypass with service roads either side, on the northern side of Peshawar city. The bypass would be constructed along a new alignment passing through agricultural land. The bypass and the service roads would be approximately two and one meter above the Natural Surface Level (NSL). Lined open drains would be provided between the bypass and the service roads on either side. All earthen tracks would be connected with the service road while asphalt road would be connected with the bypass with median opening.

The sources said that the scope of work included the construction of interchanges at the junctions of bypass with Charsadda and Warsak Roads, 12 bridges, two flyovers and six at grade intersections at the major reoad crossing a cross drainage structures with allied facilities. Land measuring 3430 kanal (428.75 acres) would be acquired for the requirement of the right of way (ROW) i.e. 55 meter compensation would be paid to the affectees involved in the ROW including resettlement.

About background of the scheme, the sources claimed that the original project, for construction of 33 km long bypass connecting N-5 on southern side of Peshawar to M-1 of Motorway was approved by ECNEC on 4th Aug2005 at the cost of Rs 3.078 billion. However, due to certain impeding factors including excessive urbanization, aggravated by issues relating to land acquisition and the bypass alignment, no progress in the implementation of the project was made.

The sources further said that an expenditure of Rs 95.449 million has been incurred so far against land and compensation for damages. Following approval of the project, locals of the area apprehended that the project would create social, environmental, health and commuting problems for the civil population of the area due to passing through municipal limits f the city. It was also apprehended that it might obstruct urbanization process due to delay in implementation.

To finalise the alignment and land acquisition for the project a committee was set up by the NWFP government under Revenue & Estate Department on the directions of the President of Pakistan. Committee surveyed the alignment and made deliberations on the matter and made some recommendations. The proposed alignment was a very old one. This alignment was initially indicated by the ex-PDA (Peshawar Development Authority) now CD&MD (City Development and Municipal Department).

The committee also recommended that if the acquisition was allowed to continue, the NHA would be involved in litigation, further delaying the completion of the project and pay a heavy cost for the build up area. The committee also felt that in a number of cases, it would become very difficult for NHA to acquire certain pieces of land.

Keeping in view the vital importance of this project, consultants were deputed to conduct detailed survey of the site and to highlight hard areas with emphasis on keeping the alignment virgin as for as possible. The survey was completed in three days from 29th to 31st August 2007 and most feasible alignment with total length of 30 km was identified. After making slight modifications in the new alignment, the final length of new alignment works out to 32.2 km. The revised cost of the scheme was Rs 9.6 billion had been worked out on the basis of new alignment with an overall increase of Rs 6.522 billion, which was 212 percent higher than the original project cost. The sources claimed that the Northern Bypass was a prime necessity, which focused mainly on the reduction of heavy vehicular traffic through Peshawar City. It would distribute traffic at the intersections, which would definitely contribute towards the reduction of traffic congestion in the heart of Peshawar It would facilitate the plying of the ‘through’ traffic destined for Afghanistan and Central Asian States through roads.

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$2 billion container terminal project: KPT accused of bypassing PC, ECC

ISLAMABAD (December 22 2009): The Planning Commission has unearthed irregularities in Karachi Port Trust (KPT), which has commenced work on two-billion dollar new container terminal without the approval of the Planning Commission (PC) and Economic Co-ordination Committee (ECC) of the Cabinet.

The Planning Commission constituted an eight-member task force on maritime industry in December 2008 with a mandate to propose appropriate amendments to the Merchant Shipping Ordinance-2001 and other relevant legislation.

Sources told Business Recorder on Monday that the Planning Commission's task force on maritime industry, in its report, revealed that the KPT authorities had initiated work on container terminal to 18-meter draft before deepening existing harbour and repairing non-operational berths without the approval of the PC and the ECC.

"The KPT Act forbids spending of money outside port operations, but it has spent on schemes like Clifton underpass, beauty fountain, Korangi flyover etc," the report revealed, and recommended that the KPT be stopped from spending on such projects.

The report also identified problems, being faced by the KPT, including rupees six billion cost of a golden handshake for the 3,000 employees of the Karachi Dock Labour Board (KDLB). Keeping them on board is costing the KPT rupees two billion per annum on salaries. However, the employees and management are engaged in conflict over large-scale retrenchment. "There are no political risks, but employees simply use scare tactics to frighten the ministers," the report said.

The report added that as many as 11 berths were non-operational and the KPT was not complying with landlord port concept. "The KPT is meant to be a non-profit trust, but its profit had surged to Rs 52 billion, it said, adding that the profit last year stood at rupees seven billion.

The report said the KPT had spent hundreds of millions on flotilla with 500 employees violating the government policy. The KPT had not been supportive of Pakistan flag craft and companies, but it had awarded expensive contracts in foreign exchange to foreign flag companies.

The report has made the following recommendations:

-- Enforce provisions of Trust Act.

-- Enforce landlord port concept for harbour craft.

-- Repair all berths and deepen port to 14 meters before building a new terminal.

-- Abolish KDLB through the golden handshake.

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Fleet upgradation: PNSC urged to borrow $300 million from world market

ISLAMABAD (December 25 2009): The Planning Commission has opposed extending government funds and/or public guarantees to Pakistan National Shipping Corporation (PNSC), and urged it to borrow 300 million dollars from the international market to upgrade its fleet, Business Recorder learnt here on Thursday.

According to the report, the PNSC Group achieved a turnover of Rs 1,732.951 million with Rs 585.349 million contribution from the PNSC during the first quarter (July-September 2009-10) against a total group turnover of Rs 3,562.810 million and Rs 1,385 million PNSC contribution in the corresponding period last year.

The decline in freight earnings was due to global shipping crisis, the report said, adding the gross profit for the period ending on September 30, 2009 was Rs 267.086 million as against Rs 535.55 million during the same period last year.

"With its contracts of affreightment for fuel and as the preferred carrier for Pakistani cargo (coal, wheat etc), the PNSC is in a position to borrow 300 million dollars from the world market on commercial basis, leveraging its unencumbered floating assets worth over 100 million dollars," the Panning Commission's Task Force on Maritime Industry said in its report. The PNSC is currently seeking assistance from the government to upgrade its fleet.

According to the report, no ship has been registered under Pakistan flag and the Task Force has recommended amendment to the Shipping Ordinance 2001 to facilitate private sector ship owning. After scrapping four ships, the corporation presently owns only 11 ships and is planning to induct more ships in the PNSC fleet.

According to officials, owing to ageing fleet, more ships would be scrapped and the PNSC would be allowed to purchase new ships to continue its operations. Due to global recession, the number of PNSC ships declined from 15 to 11 from March 2009 onwards.