125,000 metric tons of urea: SABIC assures supply during March

Saudi Basic Industries Corporation (SABIC) has assured supply of 125,000 metric tons urea under the 100 million dollar credit facility during this month and first consignment is expected to reach Gwadar sea port on March 15, 2011.
Sources told Business Recorder on Saturday that urea supply under the agreement with SABIC will start from this month, as Trading Corporation of Pakistan (TCP) has received a schedule of urea shipment from SABIC, according to which the first consignment of urea, imported under $100 million credit facility from Saudi Arabia, will reach Pakistan in mid-March, while, complete quantity of 125,000 tons under the agreement will also be delivered in four shipments during March 15 to March 29, 2011.
A case filed by stevedoring companies of Karachi in the High Court of Sindh against the import of urea through Gwadar sea port has already been vacated, therefore as per directives of Economic Co-ordination Committee (ECC) of Cabinet, all urea imports under SABIC agreement will be made through Gwadar port.
SABIC has officially informed TCP that first shipment of 30,000 tons of urea will reach Gwadar Port from Al-Jubail (Saudi Arabia) on March 15, 2011 through MV ''Apostolos-II''. Three more shipments will also reach Karachi during the month.
As per schedule MV Josco Taizhou with a quantity of 40,000 tons is expected to be berthed on March 21, 2011. Another ship MV Gourniati carrying 25,000 metric tons is likely to reach up to March 23 and last ship MV Nosco Victory will reach Gwadar seaport on March 29, 2011 with a quantity of 30,000 metric tons.
As per ECC directives, TCP is importing urea from Saudi Basic Industries Corporation (SABIC) against $100 million credit grant of Saudi Fund for Development as well as through open tenders to avert any shortfall during Rabi season.
So far TCP has finalised contact for the import of some 231,000 tons of urea, including 125,000 tons from Saudi Arabia and over 108,000 tons from private sector through open tender. Out of the total deals, so far, 106,000 tons, procured through open tender, has reached Karachi, while, delivery under SABIC will start from next week.
TCP has awarded tender for import of 100,000 metric tons (ten percent plus minus) urea to the lowest bidder, M/s Gavilon Fertiliser LLC USA at a price of $408.68 per ton on February 11, 2011 and after the deposit of five percent performance guarantee, the letter of credit for the import of 110,000 tons of urea was opened by TCP in second week of February," sources said. First ship namely "MV Split" carrying about 35,988 tons of urea reached Karachi on February 26, 2011. It was loaded and sailed from "Shuaiba Port" of Kuwait a few days back. While, two more vessels MV "AQUILLA VOYAGER" carrying 31,000 metric tons and MV "AIFANOROUS" carrying 41,000 metric tons urea have also berthed Port Qasim port on March, 4 and March 5, 2011 respectively.
As per past practice, transportation, distribution and bagging of urea to farmers to be handled by M/s National Fertiliser Marketing Limited (NFML) to provide the urea to farmers in time to meet their Rabi requirement. With timely arrival of first consignment, it seems that TCP will complete urea import operation in specific time period to avoid any shortage in Rabi season.