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Today Pakistan wastes about $3 billion Dollar by giving the money to ships of other countries. Other than the loss of $3 Billion, Pakistan also is unable to earn revenue by transporting cargo of other countries that do not have ships. The Pakistani Merchant Navy provided valuable service to Pakistan in the 1965 and 1971 wars.

Pakistan had about 70 ships in various privately held shipping lines. The shipping line traversed the oceans of the world and kept the link with East Pakistan alive. The Safina Hajjaj at the time was purchased for $1 million. The first PPP government of Zulfiqar Ali Bhutto nationalized the Pakistan Crescent Shipping Lines and all other privately held Pakistani ships. He first merged all the shipping lines into the Pakistani Shipping Corporation and then merged the PSC with the National Shipping Corporation (the publicly held shipping line)

Government of Pakistan has approved a plan to establish two new large sized shipyards at Gwadar in Balochistan Province (“Gwadar Shipyard”) and Port Qasim near Karachi in Sindh Province (“Qasim Shipyard”) on a fast track basis.

The Gwadar Shipyard is planned to be established at Gwadar East Bay (Shamba Ismail area), on an area of approximately 500 acres (2 sq. kilometers approx). Initially planned to carry out ship repairs, it shall lead to ship building of up to Very Large Crude Carrier (VLCC) and Ultra large Crude Carrier (ULCC) size and will have at least two dry docks of approximately 600,000 DWT.

The Qasim Shipyard is planned to be developed adjacent to Korangi Fish Harbour (Port Qasim Area), on an area of 500 acres (2 Sq. kilometers approx) with at least two dry docks of 600,000 DWT. Main function of this shipyard will be building of large ships up to VLCC/ULCC size and construction of Offshore / Onshore Oil Rigs. It will also have ship repair facilities.

The Shipyards are to be developed with minimum financial support from the Government of Pakistan. The projects are conceived in a manner, whereby the private sector will be responsible for designing, financing, building, operating and maintaining the Shipyards.

On behalf of the Government of Pakistan, Karachi Shipyard & Engineering Works Limited is seeking advisory services from internationally qualified and experienced advisory firms ideally led by a reputable international financial institution / investment bank and comprising of requisite technical, legal and other consultants to assist the Government of Pakistan in planning, development and implementation of these projects.

Proposals for advisory services for both projects separately are solicited from internationally qualified and experienced advisory firms with demonstrable experience in structuring world class shipyard development related transactions.

The Request for Proposal (RFP) package including the Terms of Reference (TOR) and other relevant information can be downloaded from the following websites:

(i) Karachi Shipyard and Engineering Works’ Official website

(ii) Planning Commission’s official website

(iii) Infrastructure Project Development Facility’s official website

(iv) Public Procurement Regulatory Authority’s official website

Pakistan’s 214 Submarines made in Karachi with German help RUPEE NEWS: Recording History, Narrating Archives, Strategic Intellibrief Analysis: Noticias de Rupia | Nouvelles de Roupie | Rupiennachrichten | ??????? ????? | ???

In 1972 Prime Minister Zulfiqar Ali Bhutto saw the strategic importance of shipping, steel, and nuclear technology. He formed the Pakistan National Shipping Corporation with 40 modern, state of the art ships. These ships were used to transport sensitive Pakistani defense material. A strategic relationship with the Bank of Credit and Commerce (BCCI) and Gokal shipping allowed the transfer of prohibited and banned technology to Pakistan.

The Pakistan Marine Academy, a maritime school run by the Pakistan Navy was revamped to produce a cadre of professional marine officers that would serve the country. These professionals ran the 40 ships of Pakistan and were employed by various shipping enterprises around the world. There is a huge worldwide shortage of about 30,000 marine officers and merchant navy personnel. Pakistani seamen work in foreign ships send valuable foreign exchange to Pakistan. Pakistan has the Pakistan Marine Academy, a well equipped institution with world class facilities. It used to be run by the Pakistan Navy officers and had the potential to supplemented the Pakistan Navy. The Pakistan Marine Academy can produce about 200-500 seamen and officers per year and provide emplacement to the youth of Pakistan and earn foreign exchange for Pakistan. Today the Academy is running below capacity.The Power plant industry in Pakistan absorbed a lot of the ship generators as well as the Marine Engineers who had graduated from the Pakistan Marine Academy.

The Pakistan Marine Academy was originally in Juldian Chittagong. It was moved to the Haji camp in Karachi ’till its move to its permanent campus in Mauripur. Young men from Jordan, Nigeria, Malaysia and other countries were sent to Karachi to learn the sea trade. This positively impacted the foreign relations of Pakistan and helped create a network of goodwill in the ports. The Marine Academy can produce sailors for the world.

General Zia ul Haq did not support the navy or the PNSC. The PNSC went into disrepute and the PNSC runs a 15 dilapidated ships (10 Multi Purpose Cargo Ships,  4 Aframax Tankers, 1 Bulk Carrier) that need to be replaced with bigger container ships.

Today the PNSC needs to buy about 100 new ships. This would save the country more than $3 Billion in valuable foreign exchange and it would also provide employment to Pakistani sailors as well as provide business to the Karachi Shipyard and Karachi Port Trust organizations.

The Karachi Shipyard and Engineering Works (KESC) is one of the few shipyards in the third world that is capable of making ships. It has not only manufactured ships, but also exported them to China. The KESC should be replicated four of five times. Korea and China are huge ship building nations. the KESC can provide competition to these countries and provide employment to Pakistanis and create engineering technology and suppliers in Pakistan.

During the reign of Nawaz Sharif, the Gidani beach was the largest ship breaking industry in the world and provided more than $1 Billion in earnings to the people of the Mekran coast. To help the Ittefaq foundry keep its monopoly on steel, Mr. Nawaz Sharif imposed strict tariffs on the ship breaking industry while expropriating the Pakistan Railway for free transportation of imported steel to Ittefaq Foundry. These machinations of Mr. Nawaz Sharif destroyed the largest ship breaking industry in the world. The ships were sold at scrap value and provided valuable engines and repair material to an entire industry in Pakistan. The Gidani beach provided steel to the Pakistan Steel Mills as very low cost.

GADANI: Pakistan’s forgotten ship-breaking industry is set for a boost as it prepares to tear up the oil tanker Kapetan Michalis, the largest ever ocean-going vessel to be scrapped.

The formerly Greek-owned Kapetan is poised to be broken here at Gadani, the heart of the nation’s once-thriving ship-breaking industry about 60 kms northwest of Karachi, on the edge of the Arabian Sea.

“It is so huge that it could take a year to be completely scrapped,” says Mohammad Akram, a labourer with 29 years in the industry under his belt.

A typical tanker can be stripped in around six months, but the Kapetan Michalis — the first of the gargantuan 70s-era tankers to be scrapped anywhere — is going to require a lot more work.

The tanker’s vital statistics — 427 metres long, 71 metres wide and 37 metres high — make her almost twice the size of the infamous Titanic, and the largest ship in the world “This is the largest ship that has ever been brought here for breaking and it will be an experience for me to supervise it,” says Mohammad Uzair, another veteran of the industry.

After nearly 25 years cruising international waters under its Greek owner, she pulled up her anchor for the last time in October after she was steered here by a Pakistani ship breaker.

The scrapping of Kapetan Michalis is giving a one-off boost to the ship breaking industry here, which has been floundering since its hay days of the late 80s and early 90s.

“I still remember the days when a long queue of ships was always waiting for scrapping and almost 100,000 labourers were at work,” Uzair sighs.

Now there are no more than a few thousand men working here, earning around Rs 6,000 per month, and only five to six ships are anchored at any one time.

Once stripped, Kapetan’s remnants of steel, motors and pipes will be sold to steel mills and other dealers. A supervisor at the yard estimates her parts will bring in over Rs 1 billion (17 million dollars).

In the 1970s the ship breaking industry was mainly concentrated in Europe, but high wages and the increasing cost of upholding environmental, health and safety standards led to Asia emerging as an alternative.

These days most of the world’s ships end their days on the beaches of India, Bangladesh and Pakistan, where environmental and other regulations are either non-existent or loosely enforced.

Still, Pakistan’s industry has struggled since the introduction early last decade of taxes — including higher duties on purchasing ships — which ship breakers say make it difficult to earn a profit.

Salahuddin Ahmed, secretary general of the Pakistan Ship-breakers Association, says duties have doubled from five to ten percent. Sales taxes meanwhile have jumped from 15 percent in 2000 to 20 percent and “rendered the business unviable”.

Around 5,500 tankers currently ply the world’s oceans. More than 40 percent were built before 1980, according to figures from environmental watchdog Green Peace.

Environmentalists are highly critical of the industry, branding it highly-polluting and accusing it of subjecting its underpaid workers to dangerous conditions

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