Key points
- Collaboration will boost regional trade and enhance connectivity: statement
- It also aims to strengthen Pakistan’s role in global maritime industry
- PNSC is Pakistan’s premier national flag carrier
ISLAMABAD: Pakistan National Shipping Corporation and Chinese shipping giant Shandong Xinxu Group signed an MoU on Thursday to establish a framework of mutual trust and cooperation between the two entities to pursue commercial benefits and create favourable conditions for investment in Pakistan’s maritime sector.
The MoU was signed by the chief executive officer (CEO) of PNSC and the chairman of Shandong Xinxu Group Corporation in the presence of Pakistan Federal Minister for Maritime Affairs Junaid Anwar.
Shared economic goals
According to a statement, the collaboration will boost regional trade, enhance connectivity, and strengthen Pakistan’s role in the global maritime industry through mutual cooperation and shared economic goals.
PNSC, Pakistan’s premier national flag carrier, operates under the Ministry of Maritime Affairs.
Shangdong Xinxu Group Corporation, based in Zibo City, Shandong Province, China, is a leading Chinese enterprise engaged in international trade and shipping.
The understanding primarily focuses on collaborative efforts in several key areas.
Key areas
These include the sale and purchase of merchant cargo vessels such as liquid bulk tankers, dry bulk carriers, and containerised ships under joint or individual ownership, as well as through profit and loss sharing arrangements.
The MoU also encompasses the leasing of such vessels by Xinxu to PNSC through various charter mechanisms, including time, spot, and bare boat charters.
Another major component of the MoU involves PNSC offering commercial, technical, and administrative management services for vessels as mutually agreed, covering areas such as chartering, marketing, revenue optimisation, maintenance, dry-docking, crewing, and regulatory compliance.
Furthermore, the MoU includes provisions for financing arrangements by Xinxu to PNSC for investments in ships and other floating platforms.
These arrangements will be governed by commercially competitive terms, ensuring mutual benefit and financial viability.
