ISLAMABAD: Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry said the Pakistani shipping sector is set for a major transformation following the signing of a Memorandum of Understanding (MoU) between the National Shipping Corporation and China’s Shandong Xinxu Group.
The federal minister expressed these views while addressing MoU signing ceremony between CEO of PNSC and the Chairman of Shandong Xinxu Group Corporation, said a press release issued here on Thursday.
“The signing of this MoU symbolizes a growing partnership between Pakistan and China in the maritime domain, paving the way for future cooperation, investment, and development in Pakistan’s shipping industry”, the minister added.
He emphasized that 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, headquartered in Karachi, is Pakistan’s premier national flag carrier, operating under 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 minister said this MoU establishes a framework of mutual trust and cooperation between the two entities, aimed at pursuing commercial benefits and creating favourable conditions for investment in Pakistan’s maritime sector.
The understanding primarily focuses on collaborative efforts in several key areas. These include the sale and purchase of merchant cargo vessels such as liquid bulk tankers, dry bulk carriers, and containerized 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 optimization, 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.
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