Shipping Sector1

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API

SHIPPING INDUSTRYBY

MASHOOD WASIFAND

FURQAN LAKHANI


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A Brief Introduction

Three Major Ports Port Qasim

Karachi Port

Gawadar Port

Port activities include: Handling of oil tankers.

Dry cargo handling such as coal, wheat, etc.

Bunkering.

Handling cargo containers.

Trade of $50bn is carried out per annum.

5000 directly and 10,000 indirectly employed.


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Factor Conditions

3 major ports with Karachi Port the biggest

and busiest

Facilities such as Oil Piers, Container

Terminals and Normal berths

Unskilled labor- Paid in tonnage

Government owned facilities (KPT) Marine Workshops


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Ship Breaking Steel dilemma

Only two Cranes of 100 tons each-1945

Two dredgers operational PNSC owns only a few vessels.

First Right of Refusal.

ALL ARE BASIC FACTORS


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Firm Strategy, Structure and Rivalry

Competition among multinationals and local

firms.

Major Strategy is Cost leadership.

Almost all Private firms have Seth culture

except for Multinationals.

Almost no Departmentalization. Almost all private companies act as middle

men.


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Multinationals such as MSC, Hanjin Shipping,

Maersk-Sealand, etc. have proper depts.


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Related and Supporting Industries

All Exporting and Importing Sectors

All port operation companies.

Labor, oil piers, cranes, etc. Logistics companies (Rail and Road)

Maritime Institution- only one.

Labor Unions(KDLB)


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Government

Direct Intervention of Government present

Berths are Government owned

PNSC is Government owned

Government Laws affect import and export

Governments own import and export(agriculture machines, Buses, Trains,etc)

QICT, KICT and GICT (ISO certified)


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DP world Bin Qasim


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Chance

We are very LUCKY. The odds are always in

our Favor.

Whenever the sector is about diminish in

terms of sales some international event

pushes sales and restores it.


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Strengths of Our Shipping Sector

Annual Worth of $ 50 Billion (Equal to our

total Debt).

Our Ports are on main trade routes.

Although Old but Proper Cargo handling

facilities are there.


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Weakness of our Shipping Sector

Unionism by KDLB. This has promoted cheapunskilled labor.

Automated grain and fertilizer terminal

Costs lives and money both. Governments Intervention.

Lack of Proper Infrastructure to support the port

(Gwadar Port). Excessive delays and lay times have impaired

our reputation.


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Opportunity

A lot of Untapped Niche remains such as

Automated Bulk Handling, Automated Oil

Handling, etc.

Port can be deepen to allow larger ships

allowing for economies of scale. (more then

100,000 DWT)

Can provide employment to the skilled

labour.


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Recommendations

1. Separate liquid terminal will help increase

revenue.

2. End PNSCs monopoly

3. Unionism should be dealt with

4. Fire fighting faculties should be made

available this will in turn reduce insurance

premium.

Documents

Shipping Sector1