Deal with Sabic: urea import operation completed

Trading Corporation of Pakistan (TCP) has successfully completed the urea import operation for Rabi season as the last consignment of the commodity under the deal with SABIC has reached Gwadar Port. Sources told Business Recorder on Tuesday that two ships carrying over 74,000 tons of urea arrived at Gwadar Port on Monday night from Al-Jubail, Saudi Arabia.
MV "JOSCO TAIZHON" and MV "FT PETER" have birthed at Gwadar Port carrying 44,000 tons and 30,500 tons of urea, respectively. Offloading from one ship has almost completed, while discharging from the second vessel will start today (Wednesday). With arrival of these two consignments, the urea import operation, conducted by the sate run grain trader, has completed," sources said.
In the last week of January this year, the Economic Co-ordination Committee (ECC) of the Cabinet directed TCP to ensure supply of urea during Rabi season for which its import be arranged through Saudi Basic Industries Corporation (Sabic) against $100 million credit grant of Saudi Fund for Development as well as purchase from open market, through international tenders.
On January 31, 2011, TCP issued an international Gallop tender under clause 42d (III) of PPRA rules 2044 for the immediate import of urea from pre-qualified foreign urea exporters/suppliers of TCP for supply of 0.225 million tons of 10 percent more or less seller''s option in bulk through import from world-wide sources on C&F, Port Bin Qasim and Gwadar Port.
Tender was opened on February 7, 2010, and awarded to the lowest bidder, M/s Gavilon Fertiliser LLC USA at $408.68 per ton for import of 100,000 tons urea. Under this agreement, first shipment was received through MV "SPLIT", which carried 35,988 tons imported urea that landed at Port Qasim on February 26, 2011. While the remaining quantity was delivered through MV "AQUILLA VOYAGER" (31,000 tons) and MV "AIFANOROUS" (41,000 tons) on March 2, 2011. In response to TCP tender the successful bidder has supplied some 106,000 tons of urea, which has been dispatched to provinces.
In addition to tender, an agreement with Sabic was also signed for supply of 125,000 tons urea by end March 2011. The first shipment under Sabic was received on March 20, 2011 while last two shipments have also reached Gwadar Port on March 29, 2011.
Out of total urea import, some 106,000 tons of the commodity was supplied by private sector, while the remaining 133,000 tons was supplied under the credit grant of Saudi Fund for Development. Sources said approximately over $100 million have been spent on the import of urea for domestic consumption. Following the ECC directive, TCP imported over 50 percent urea through Gwadar Port, while distribution, transportation and bagging of urea was being handled by M/s National Fertiliser Marketing Limited (NFML) to provide urea to farmers in time to meet their Rabi crops requirement.