KARACHI: A direct containerized shipping service between Karachi and Saint Petersburg is going to be launched by May 25, 2023, signalling a transformative shift in bilateral trade between Pakistan and Russia.
The launch of a direct containerized shipping service between Karachi and Saint Petersburg is set to reshape trade relations between both countries, with immense business opportunities and the potential to extend bilateral trade up to USD$20 billion, said Abdullah Farooq, CEO of Pak Shaheen (PVT) Ltd.
He said the maiden Russian vessel, part of the Neco Line service, loaded with 2000 transshipment containers, is scheduled to arrive at Karachi port on May 25, 2023, and would return to Russia with Pakistani products, such as textiles, leather goods, and others.
Karachi-Saint Petersburg: Pak Shaheen launching direct container shipping service
The direct cargo service will drastically reduce shipping time from a month to 18 days. The second direct ship is expected to arrive at Karachi port by May 29.
Currently, Pakistan’s exports to Russia stand at USD$150 million, while imports hover around USD$300 million. However, the implementation of this direct shipping service is anticipated to boost Pakistani exports to Russia by USD$2.5 billion in the coming years. Initially, the frequency of Russian vessels operating under this service will be one vessel per month, with plans to increase it to three vessels per month within the next six months, CEO Pak Shaheen said.
Although the fare for this direct shipping service is currently high, as trade with Russia expands, more shipping services are expected to commence operations in Pakistan, subsequently reducing fares.
Furthermore, he said that this direct shipping service is projected to increase port revenue by 40 percent.
He said India is interested in becoming a transshipment hub for Russian shipments. However, Pakistan strives to position Karachi as a preferred transshipment hub, particularly for India (via UAE), China, and African countries, bolstering Pakistan’s geopolitical influence in the region.
Abdullah Farooq described Pak Shaheen’s role as an agent of Neco Line service in Pakistan, highlighting the profound market access and cost-saving benefits it brings to Pakistani exporters targeting Russia’s extensive consumer market.
Additionally, the direct shipping link is expected to unleash a USD$20 billion trade potential, providing opportunities for trade in various currencies, including the Yuan, he maintained.
Copyright Business Recorder, 2023
Comments
Comments are closed.