Pakistan To Domestically Build First Major Commercial Cargo Ship After 40 Years

Pakistan is set to domestically build its first major commercial cargo ship in 40 years at the Karachi Shipyard & Engineering Works. The project valued at $24.75 million, has been revived after being stalled for over nine months.

The Special Investment Facilitation Council (SIFC), a civil-military government body formed in 2023 to attract foreign investments, played a key role in restarting the 1,100 TEU containership project.

The shipbuilding initiative is a collaboration between the Pakistan Navy, Karachi Shipyard, and the Pakistan National Shipping Corporation (PNSC).

State media reports confirm that the Karachi shipyard will construct the vessel at a cost significantly lower than that of the international market rates.

Officials believe this project will help Pakistan save millions in foreign exchange, reduce its reliance on foreign shipping companies, and promote economic self-sufficiency.

The ship will operate as a feeder vessel for PNSC, which currently manages a fleet of 12 ships, including bulk carriers and tankers, with a total capacity of over 930,000 DWT.

This will enable PNSC to expand its role in container trade and further strengthen its position in the national maritime sector.

The project was initially announced in February 2024 during a contract signing ceremony but remained stalled for 277 days. SIFC’s intervention ensured its revival, with stakeholders coming together to move the initiative forward and bring it to reality.

Karachi Shipyard, Pakistan’s only shipbuilding facility, is equipped to build vessels up to 26,000 DWT, including bulkers, ferries, tankers and tugs.

However, most of its recent projects have been for the Pakistan Navy including corvettes, fleet tankers and frigates. The last major commercial cargo ship built in Pakistan was reportedly in the 1970s.

SIFC sees the project as critical to reviving Pakistan’s blue economy and reducing the country’s dependency on external shipping companies. No specific timeline has been issued yet for the ship’s completion.

References: Container News, Arab News

Source: Maritime Shipping News