The National Pakistan Shipping Corporation (PNSC) signed a memorandum of understanding (MOU) with the Chinese shipping giant, Shandong Xinxu Group, on Thursday in a movement that causes an “important transformation” in the shipping sector.
PNSC, based in Karachi, is the main national operator of Pakistan flags, which operates under the Ministry of Maritime Affairs. The Shandong Xinxu Group Corporation, based in the city of Zibo, the province of Shandong, is a leading Chinese company dedicated to international trade and shipping.
A statement from the Press Information Department said that Mou’s firm ceremony took place between the PNSC CEO and the president of Shandong Xinxu Group Corporation in Islamabad with the Minister of Maritime Affairs Muhammad Junaid Anwar Chaudhry present.
“The Pakistani shipping sector is ready for an important transformation after the signing of a MOU,” said the statement.
When addressing the signature ceremony, he said that development symbolized an “growing association” between Pakistan and China in the maritime domain that would pave the way for “cooperation, investment and future development in the Naviera industry in Pakistan.
He stressed that collaboration would boost regional trade, would improve connectivity and strengthen the role of Pakistan in the world maritime industry through cooperation and shared economic objectives.
“This Mou establishes a framework of mutual trust and cooperation between the two entities, aimed at looking for commercial benefits and creating favorable conditions for investment in the maritime sector of Pakistan,” said the said statement cited.
“Understanding is mainly focused on collaboration efforts on several key areas. These include the sale and purchase of merchant load ships such as liquid bulkfalls, dried aid carriers and container ships under joint or individual property, as well as through profit and losses exchange agreements.”
The Mou also covered the lease of such vessels by Xinxu to PNSC through several charter mechanisms, including time, spot and bare boat letters.
Another important component of the Mou involved the PNSC that offers commercial, technical and administrative management services for boats such as mutually agreed, which covers areas such as freak, marketing, income optimization, maintenance, dry education, crew and regulatory compliance.
“The Mou includes provisions for Xinxu to PNSC financing agreements for investments in ships and other floating platforms. These agreements will be governed by commercially competitive terms, ensuring mutual benefits and financial viability,” the statement said.
In June, PNSC was aimed at generating approximately $ 700 million in loading profits by expanding its load fleet to 34 ships in the next three years as part of a broad strategy to revitalize the maritime and logistics sectors of the country.
