Even though it is strategically located along the historical alternative “silk route” from Venice to Japan across the Indian Ocean — as significant for world trade as the one across Central Asia, Pakistan has been late in developing its shipping industry. More than 95% of country’s trade is routed through the sea, which accounts for more than 35 percent of the country’s GDP.
However, over the past decade, the country has been investing heavily in shipping and marine technology and has seen expansion of the industry since the construction of the Gwadar Port in the mid-2000s.
Rear Admiral Sayed Hasan Nasir Shah, who is the managing director for Karachi Shipyard & Engineering Works Ltd. (KSEW), has responded to questions from MarineDeal News, giving details about the country’s marine industry plans; Karachi shipyard and interest in potential cooperation with the Turkish shipping industry.
Government stands by shipping industry
According to Nasir Shah, the country’s maritime policy emphasizes investment in marine technology, commerce, ocean research, off-shore exploration and also examines the security needs of Pakistan and suggests ways and means to meet them.
“The policy, which had been under study for several years, has proposed a multi-dimensional vision as the sea resources, living and non-living, need coordinated efforts of various ministries in management, conservation and environment-friendly exploration.
The main objectives of the policy are protection and promotion of maritime interests, conservation of maritime environment, including development of coastal zones, ports and harbors,” he says.
Currently, Pakistan has three major commercial ports: Port Trust (KPT), Gwadar and Port Qasim Authority) (PQA). Sixty percent of all trade is handled through KPT and 40% through PQA. Gwadar Port has only recently become operational and will be utilized to full capacity soon.
Plans to build two new shipyards
Currently, Karachi Shipyard is the only yard in the country to meet all the shipping needs, but the government is considering the construction of two new shipyards, according to information provided by Nasir Shah.
The country’s national flag carrier is Pakistan National Shipping Corporation (PNSC) which manages a fleet of nine vessels including four double-hull Aramex tankers of 107,000-DWT each and five bulk carriers of different sizes.
Pakistan Navy is currently maintaining a Fleet which includes Agosta 90 B Submarines, Oliver Hazard Perry Frigates, F-22P Frigates, Type -21 Frigates, Fast Attack Crafts (Missile), Mine Counter Measure Vessels (MCMVs), Oil Tankers for refueling and replenishment, Auxiliary vessels, Survey Vessels, Multi Role Tactical Platforms (MRTPs) and Landing Craft Mechanized (LCMs) .
Government support for Karachi economy
The Pakistani government has taken various steps to support advancement of economy in Karachi such as the construction of a deep-sea port, which has enhanced cargo handling capacity. This has provided faster means of cargo handling. Similarly, the recent construction of Karachi International Container Terminal (KICT) has also played a vital role to enhance the cargo handling facilities of the Port. The country has also improved infra structure of national highways and other link roads to facilitate smooth transportation of cargo. Karachi-Hyderabad Motorway is significant project in this regard and it has offered incentives to encourage industrial activity.
Some of the future plans of Pakistan include the construction project of Ship Lift & Transfer System, which will play a major role in enhancing Karachi Shipyard’s building and repair capacity and create employment opportunities for the local population.
Karachi Shipyard: Great capabilities, vast potential
Karachi Shipyard and Engineering Works Ltd was set up in 1957 to undertake building and repair of medium-size ships up to 18,000 tons and multi-purpose cargo vessels up to 26,000 tons.
According to Nasir Shah, the yard has played a vital role in expanding the industrial base by construction of around 440 ships, repaired 5000 vessels and fabricated over 2000 heavy engineering units so far. Shah said: “Further, KSEW has also played a vital role in imparting technical training to the people of Pakistan and produced a pool of technically qualified youth who have not only participated in domestic industrial development but also joined foreign based industrial set up to earn high foreign exchange. Similarly, the yard has also provided opportunity for the sub-contractors to deploy a large number work force to enhance their technical skill and gained experience over the period.”
The yard has been not only strong but also very resilient in the face of the global crisis. Nasir Shah said: “It is pertinent to mention that KSE has retained its shipbuilding for the last 60 years despite economic crunch and recessions faced by the ship building industry worldwide. It is the only heavy engineering industry in Southern region of the country which has under taken many engineering projects apart from shipbuilding
Some of the most important products built by the yard do date are MV Al-Abbas (12,86-dwt, 1967); MV Lalazar (13,300-dwt Cargo Vessel built for PNSC in 1974); MV Hetian(13,160-dwt Cargo Vessel was built for China National Machinery Import & Export Corporation, China, in 1978); MV Islamabad (17204-dwt. It was the largest size general cargo and container ship built for PNSC). Another important product is the You Ti 20 (17,000-dwt Bulk Carrier built for China National Machinery Import & Export Corporation in 1992.)
The yard has also built a F-22P Frigate, five Multi-Purpose Patrol Craft, Coastal Tankers, Mine Counter Measure Vessels (MCMVs), Agosto 90 B Class Submarines, Small Tanker Cum Utility Ships (STUS), Fast Attack Craft (Mechanized) FAC(M) and Pakistan Navy Fleet Tanker (PNFT)
Early 1970s was a profitable era from KSEWs perspective as it bagged orders for 19 support vessels from Iran, a cargo vessel and two tugboats from Abu Dhabi, two tugboats from Saudi Arabia and a cargo vessel plus two bulk carriers from China.
Information on Karachi Shipyard
KSEW covers an area of 71 acres. There are three berths and two dry docks having a 26,000-ton capacity. There are 53 various industrial workshops involved in various ship building activities.
“KSEW is a unique yard as it has undertaken variety of shipbuilding projects,” in the words of Nasir Shah, who said, “A six-meter-long boat and 160-m long ships are being built in the same yard.” KSEW has the capability to undertake almost all kind of medium size ships and craft while remaining within own capacity. As per our production policy the yard is always ready to undertake various shipbuilding projects specially strategically important platforms.
KSEW has geographical limitations and not enough room for its capacity building. Nasir Shah explains: “Under this scenario, Pakistan stands quite far from other developed countries but it is a significant fact that despite global recession in this industry, KSEW is earning considerable profit for the last 10 years. This indicates a big potential and economical benefit in coming years through the yard. “Further, with the upcoming China Pakistan Economic Corridor (CPEC) we intend to establish a new shipyard utilizing the more affordable labor costs.” This will provide means to become a highly competitive yard of the world. Further, the yard is fulfilling all the requirement of Pakistan Navy by undertaking construction of various types of craft including submarines, frigates, missile craft, tankers and patrolling vessels etc.”
There are plans to transform Karachi Shipyard into a major marine industrial hub having capacity to replace all the floating vessels with the most modern and hi tech ships and craft.
Collaborating with other nations
KSEW is the sole yard of the country to fulfill its domestic needs of shipbuilding at its full capacity. As such, they don’t see the yard as being in competition with any regional country. Nasir Shah says: “However, we are in collaboration with our friendly country – China; in their Design House and yards to acquire benefit from their technological advancement.”
KSEW has acquired steel from China, Turkey, South Korea and Holland as Kit of Material (Komi) depending upon the design and project of the client.
The yard holds open tenders for procurement of the material required for ship construction. “However, Turkey being a brotherly Muslim country and having an excellent ship design and building infra structure, due consideration is always given,” Nasir Shah adds. “Similarly, China being a traditional ally and having experience in ship design and possessing technological advancement, is also considered positively.”
Contract for Survey Vessel with China
Karachi Shipyard signed a contract for construction of a Hydrographic Survey Vessel for PN was signed in May 2017 following an open tender for the design and Komi of the vessel by Ministry of Defense Production (MoDP) with pre-condition to build the ship at KSEW. Jiangsu Dajin Heavy Industries (JDHI) had won the bid and contract was materialized accordingly.
The vessel will be constructed at KSEW without any technical assistance from the lead yard. It will be equipped with most modern and highly technical survey equipment, gadgets and sensors.
The vessel will be capable for conducting effective hydrographic/geo physical /Oceanographic surveys, particularly Sea Floor Mapping and Deep Sea Bathymetric Surveys for sea charting. Ship will be available for 80% of the time throughout its design life of 30 years.
“We are undertaking various projects with China being a friendly country and intend to continue in future as well. However, mainly it depends upon our client that from which country they want to acquire the design and KoM,” Nasir Shah said.
Signature projects of Karachi Shipyard
Since its inception the yard has completed various kinds of shipbuilding projects. It includes various merchant vessels, warships and other auxiliary craft. “However, F-22P Frigate and 17000 tons PN Fleet Tanker are considered the most prestigious projects,” KSEW’s managing director says.
F-22P being a modern frigate equipped with most hi-tech weapons, control systems, sensors and other machinery & equipment.
Similarly, PNFT being a huge ship with the most modern design and equipped with most advance and hi tech replenishment gear and other machinery.
KSEW has also constructed Bridge Erection Boats for Pakistan Army.
Engineering projects
Apart from ship building projects Karachi Shipyard has also undertaken construction orders of general nature products including gates for barrages and dams, complete sugar plants including rollers, industrial boilers, electric overhead luffing and gantry cranes, large size LPG storage tanks, drilling rigs, HT and LT transmission towers and overhead pedestrian bridges.
HSE policies
Karachi Shipyard is also committed to environmental and safety standards. The yard is an Integrated Management System (IMS) certified Company. “We believe in quality and strive for customer satisfaction, safety of all personnel working within premises and provide healthy environment to customers, employees and neighbors to ensure that working culture of KSEW is healthy and safe,” Nasir Shah explains.
The yard’s certification includes ISO9001: 2008, ISO14001: 2004, OHSAS 18001: 2007, BV Rules for Classification of Steel Ships, BV Rules for Classification of Naval Ships, BV Rules on Material and Welding, DEFSTAN, NES, MILSTD, BV Rules on Material and Welding, CCS Rules for Classification of Seagoing Steel Ships, Loyd’s Rules and Regulation for Classification of ships, and Loyd’s Rules and Regulation for Classification of ships
Employment and training
The yard currently employs 215 officers including 160 engineers, 300 supervisors, 1400 industrial workers and 470 Secretariat workers. “However, about 1000 -1500 workers are also being employed on a contractual basis,” Nasir Shah said.
The shipyard staff is highly qualified. Most employees are qualified at Karachi University, Mehran University, Nadirshaw Edulgy Denshaw (NED) University, PNPI (Pakistan Navy Poly-Technique Institute and Government College of Technology.
“Recruitment is done completely on merit basis,” Nasir Shah said, adding “Vacant posts along with eligibility criteria are announced through newspapers and KSEW Website to invite wide variety of skilled and suitable candidates. Upon completion of the recruitment process through a selection board the candidates are finally selected.”
The yard also conducts various training programs in collaboration with several government agencies.
The Shipyard Institute of Technology (SIT) also oversees internal trade specific training of KSEW personnel as per schedule of different departments of KSEW. So far around 22,000 individuals have been trained in different trades. The technical trades taught are welding, steel fabrication, machinist, turner outfitter, electrician, diesel mechanic, carpentry, crane operator, ship fitter, mechanical draughtsman, Auto CAD & CIT.
Partnership with Turkey
Pakistan has numerous agreement with Turkey; including the ongoing procurement process of two 70 and 80 tons Bullard Pull LNG Compatible tugs for PQA.
Pakistani Navy has acquired various crafts and vessels from Turkey, such as Zarrar class fast Patrol crafts and Multi Role Tactical Platforms etc.
“Turkey being a brother Muslim country having a major marine industrial infrastructure at par with European Quality and comparatively at better cost, is always given preference to acquire marine technology in terms of design and KoM,” said Nasir Shah.
Cooperation between Turkish and Pakistan Navy is ongoing in many fronts from training and mutual exercises, sharing of information to sale/purchase of military hardware. “Pakistan Navy has acquired several MRTPs which are rendering excellent performance. Keeping the experience PN has also signed a contract with Turkey’s Defense Technologies and Engineering (STM) for provision of Technical Data Package (TDP) and KoM of PN Fleet Tanker,” explained Nasir Shah.
Keeping in view the experience, the navy has also signed a contract for Midlife Upgrade (MLU) of Agosta 90 B Submarines. At present the Pakistani Navy is considering purchase of four Milgem Ada Class Corvettes, according to Nasir Shah.
There is a close coordination process with STM to successfully bring to completion Pakistan Navy Fleet Tanker Project (PNFT) Project. “In this regard, a common forum has been established where regular meeting and discussions are conducted to resolve various day to day occurring queries,” said Nasir Shah.
