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Adil Yousuf

Importance History Research methodology Human Resource

Hassan Khan

Porters model

Saad Burney

SWOT analysis Recommendations

Interviewed the key personnel manger, Shehrayar Hassan and the Executive Director Administration Brig. Rashid Siddiqi Conducted a survey
Questioned twenty employees (both off-shore and on-shore) to find HR and job related information Literature review

No informal sector One organization namely the PNSC The rest are foreign shipping companies like DHL Global Forwarding and Maersk that handle 87% of Pakistans sea trading needs .

Post Private ship owners built the national fleet from indepe scratch that is nothing was inherited from the British ndence

1950s
1960s

In 1963 National Shipping Corporation(NSC) was formed Indo-Pak War in 1965 resulted in rerouting of ships due to security concerns 1971: Creation of Bangladesh reduced merchant marine ships from 71 to 57

1970s

1974:Shipping was nationalized. 9 private shipping companies were merged to form Pakistan shipping Corporation.
25+26 ships=51 ships

Merger in 1979 PSC+NSC=PNSC

393.2 million rupees were paid in taxes gainful utilization of 1000 km of coastline. Helps in foreign exchange savings 500000$/year

Since 90% of world trade is carried through oceans therefore shipping industry is playing a vital role in world economics. More than 95 per cent of the total freight trade of

PNSC alone Provides employment to 1112 people out of this 50% are unskilled. and salaries of 940.2million rupees were paid

National Flag carrier of Pakistan. Engaged in transportation of dry bulk and liquid cargoes globally

Management offices are located in Karachi, Pakistan and are listed on the Karachi Stock Exchange since 1980 PNSC has 18 subsidiary companies

PNSC is an autonomous corporation


Functions under the overall control of the Ministry of Ports and Shipping , GOP. It manages a fleet of 09 ships, real estate and a repair workshop.

The Corporation is undertaking three main functions. These are: I. Fleet Operations II. Real Estate III. Workshops

Carriage of National Trade by sea. Strategic Considerations.

Freight ships stability

Foreign Exchange Savings.

Managers at all levels must be qualified (have a degree in engineering or business administration) and have experience in relevant field. Separate middle level on-shore and off-shore managers. Strategic decisions made by top level management. The rest by dept. heads.

A survey

Employees questioned

Middle level manager Top level manager Lower level manager Non-managers

Q. How would you rate on a scale of 1 to 10, 1 being the least dissatisfying and 10 the most dissatisfying, the following factors are associated with job dissatisfaction? Excessive pressure.____ Non-flexible timings.____ Lack of appreciation or rewards on good performance.____ Lack of additional benefits like being given a car and free fuel.___ Lack of life or medical insurance.___ Longer than stated working hours.____ Sexual harassment.____ Not being able to carry weapons to defend myself in the case of pirates attacking my ship.____ No being able to be with family because of long sea journeys.________

PNSC has HR department and it has proper recruitment policies that are always followed. Hiring is done like in any other firm although political pressure is always there. Every job has unique requirements. It does send employees abroad. Last yr 0 and year before that 3 were sent abroad It has a program of staff development in which job rotation, seminars, workshops are held by instructors.

PNSC has paid for its employees receiving degree in Marine engineering from NED. PNSC does fire inefficient employees but still it has more than needed employees. It has 1112 employees (off-shore and onshore). 50% of these are unskilled. During the past 2 years 30 to 40 employees were hired (onshore) Most recruits are graduates.

%age hired from business schools=1 %age hired from medical universities=0% %age hired from engineering universities primarily NED= 3 to 4% More people are preferred from armed forces specifically Navy. Appraisal reports are used for employee evaluation. Most think they are VALUED AS EMPLOYEES and were unwilling to switch jobs if offered a higher pay. For most employees shipping wasnt first choice

Strategic location Equipment Blessed with long warm water coastline with 3 deep sea ports .
Deep sea Ports

Port Qasim

Karachi Port

Gawadar Port

Major ports Karachi Port Port Muhammad Bin Qasim Gwadar Port Small Ports Jiwani Pasni Ormara Kalmat Keti bander

Length of Pakistani coastline : 1100 km

Length of Indian coastline : 7517 km

Geography : 45 km Navigational channel that can accommodate 75000 DWT Located between Phitti ,Kadiro , Gharo Creeks Pakistans first industrial and commercial port Handles 35 % of seaborne trade Named after general Mohammed Qasim of 712 CE Pakistans first industrial and commercial port Handles 35 % of seaborne trade

ACTUAL NO.OF BERTHS Marginal Wharf(1-4) QICT(5-7) Iron Ore and Coal Berth FOTCO Engro Vopak PROGAS (LPG) LCT 4 3 1 1 1 1 1

SHIPS HANDLED IN 2010-2011 124 627 17 166 123 8 138

FAP

26
1229

51.8 M

54.5 M

54.5 M

35.1 M

YEAR 2005 - 2006 2006- 2007

PORT QASIM 1051 1155

MUMBAI PORT 6787 6088

2007 - 2008
2008 - 2009 2009 - 2010 2010 - 2011

1139
1230 1187 1240

6150
5620 5820 5622

KESC thermal power Indus motor automobile plant Engro asahi polymer plant ICI PPTA plant Bin qasim fertilizer plant Awam palm oil refinery Mapak edible oil refinery BOC gases

Pakistans largest and busiest port Operational since 1854 Operated by Karachi Port Trust Handles 65% of Pakistans seaborne trade Annual cargo tonnage 25 million metric tons Annual container volume 2.3 million TEUs

Berth activity

West wharf

East wharf

Liquid cargo berths

13 berths + KICT

17 berths +PICT

3 oil piers

BERTH EAST WHARF JUNA BANDER WEST WHARF

BERTH NUMBER 1 - 17 18 - 23 24 30 Off which 28 30 is KICT Off which 6 9 is PICT

OIL PIERS

OP 1 ,OP 2 ,OP 3

KPT Tariff

An increase the handling capacity of KICT from 300,000 TEUs to 400,000 TEUs per annum Two new berths at KICT with 14 metres depth alongside and an additional 100,000 m terminal/stacking area A new bulk cargo terminal at East Wharf Reconstruction of the oldest oil pier to allow tankers of 90,000 metric tons deadweight (DWT) to berth A new 100-acre (0.4 km2) cargo village to cater for containers and general and bulk cargo Reconstruction of the 100-year old NMB Wharf to enhance the berthing of passenger vessels The purchase of a new dredger, two hopper barges, two harbour tugs, two water barges, an anchor hoist vessel, two pilot boats, and a dredger tender A 500-foot (150 m) high Port Tower for commercial and recreational use including a revolving restaurant The construction of a 500 acre (2 km) Port Town with 13,000 homes for port workers at nearby Hawkes Bay A new Port Club at China Creek adjacent to the East Wharf On November 9, 2007, the Karachi Port Trust signed a US$1 billion agreement with Hutchison Port Holdings to construct a new terminal called the "Pakistan Deep Water Container Port, which would begin operations by 2010, and would have ten berths capable of handling Super Post Panamax container ships.[

It will act as catalyst for large number of related projects like: Trans-shipment of bulk cargo Oil storage, refinery and petrochemicals Export processing and industrial zones Export of minerals/livestock Services (hotels, accommodation, tourism)

3 multipurpose 4.5 km long approach channel dredged to 13.5m - 14.5m Terminal infrastructure, cargo handling equipment, pilot boats, tugs, survey vessels etc. Port can handle 50,000 DWT vessels.

SHIP TO SHORE

RUBBER TYRE GANTRY

REACH STACKER

EMPTY HANDLER

EQUIPMENT

QICT

PICT

KICT

STS
RTG Reach stacker Empty handler Fork lifter

9
27 11 3 1

6
20 21 4 1

7
23 21 2 1

Largest port privatization projects in Pakistan QICT operates at berth 5-9 at Port Qasim First and only terminal to achieve ISO 9001:2000 for information security management First terminal in the SUB CONTINENT to achieve ISO 28000:2007 certification for supply chain management Operating under the IC3 program

Productivity : has capacity of 850,000TEUs Total terminal size : 30 hectares Yard stacking area: 25 hectares Berth length :1327m Only 13 km away from national highway and connected to 6 railway lines

PICT operates at berth no . 6-9 at Karachi Port Productivity : Handles 50 container vessels per month PICT handled over 669,806 TEUs in 2011 Night navigation available Only port infrastructure whose shares are quoted on the KSE.

PICT Power House caters for the entire domestic and commercial power needs of the Terminal Present Capacity is 10 mega watts, with eight diesel generators of 1.2MW each

A state-of-the-art container scanner which provides horizontal and vertical images (side and top views) rapid inspection of containers for detecting contrabands and undeclared items Latest technology of X-Ray Accelerator Electron Beam Energy: 6MeV (Million Electron Volts) Beam penetration is through 340mm steel Radio Activity Monitors for detection of radioactive substances

Operations began in 1998 Operates at berth 28 30 Member of Hutchison Port holdings (worlds leading port developer) KICT is an ISPS code compliant and is ISO 9001:2008 certified. located at the threshold of three strategic regions South, Central and West Asia KICT has an ideal location and provides shipping connections to leading hub ports in Asia ,middle east , Europe and north America

First terminal to implement Pakistan Automated Customs Clearance Systems(PACCS) KICTs operating system was designed by Navis Corp EXPRESS database software interface Allows for real time communications KICTs site provides up to date information on vessel container status and vessel schedule

When shipping a product overseas, the exporter must be aware of Packaging Labeling Documentation Insurance requirements.

Agent for the exporter Licensed by Federal Maritime Commission to handle ocean freight. Help exporters in preparing price quotations

Breakage Moisture Pilferage Excess weight.

Meet shipping regulations Ensure proper handling Conceal the identity of the contents Help receivers identify shipments Insure compliance with environmental and safety standards.

Country of origin Weight marking (in pounds and in kilograms) Number of packages and size of cases (in inches and centimeters) Handling marks (international pictorial symbols); Cautionary markings, such as "This Side Up" or "Use No Hooks" Labels for hazardous materials

Damaging weather conditions Rough handling by carriers Pilferage Shipments by sea are covered by marine cargo insurance.

COMBI VESSELS
Vessel name Dead weight Gross tonnage

SARGODHA,ISLAMABAD,MUL TAN

18242

12395

VESSEL NAME

DEADWEIGHT

GROSS TONNAGE

QUETTA,LAHORE,KARACHI

107,018

58,118

VESSEL NAME KAGHAN CHITRAL MALAKAND HYDRABAD SIBI

DEADWEIG HT 65 ,716 MT 46,710 MT 76,830 MT 52,951 MT 28,442 MT

GROSS TONNAGE 36,098 26,395 40,040 29,365 17,018 MT MT MT MT MT

Fuel prices are rising hence causing cost of shipping to rise and so important to find alternatives. Our job is to provide good shipping services not to make ships , companies in US do this and they are researching in using biogas or solar and wind power for moving ships

Points worthy of being mentioned.: Government not investing Reason: it is not a sick industry Implementation of landlord port concept Govt. regrets privatizing Resumption of shipping between India and Pakistan. Shipping is a capital intensive industry and the Government alone cannot meet this sectors requirements because of financial constraints and other development priorities. Considering this aspect, a number of incentives have been offered to encourage the participation of the private sector 1975 Indo-Pak shipping protocol LETTERS OF APPOINTMENT TO LOCALS AT GWADAR-PORT

Pakistans geographical location Three ports: KPT Port Qasim Gwadar

PNSC: Old company Experienced staff Policy on website

STRENGTHS

Shipment delays Lack of facilities for night navigation Private investors discouraged to invest Inefficient post custom clearance procedures Corruption No effort on training and increasing technical knowledge Foreign companies Large vessels cannot be accommodated Higher age of fleet PNSC: Over-staffed Government forces to do some tasks Political pressure No containerized vessels

WEAKNESSES

Shipping industry down global threat High duty and taxes from the government Political instability and corruption Many countries are limiting imports Poor image of our country Increasing price of oil Increased freight charges Loss of foreign exchange Capital intensive industry

THREATS

Geostrategic location of Pakistan Gwadar port

Investment opportunities at ports


PNSC: PNSC set to buy 5 new vessels Can get into LNG Joint venture with PSO PARCO joint venture

OPPORTUNITIES

Government should attract private investment PNSC needs to increase its fleet strength Port facilities should be improved to accommodate ships with deeper draft More terminals Integrated Cargo Container Control (IC3) facility at more terminals Oil pollution control equipment