On Thursday, Pakistan signed a memorandum of understanding (MoU) with China’s Shandong Xinxu Group, highlighting a new venture in maritime cooperation between the two countries. The agreement’s key emphasis is on ship leasing, sales, and staff management, and its goal is to modernize Pakistan’s shipping sector and boost bilateral commercial ties.
The signing of the agreement between Pakistan National Shipping Corporation (PNSC) and Shandong Xinxu Group took place in a ceremony in Islamabad. Junaid Anwar Chaudhry, Maritime Affairs Minister, stated that it was “the beginning of joint development”, marking its capability to boost Pakistan’s standing in the global shipping industry.
“It will strengthen Pakistan’s role in the growth of the shipping industry and create an enabling environment for further investment in the maritime sector,” the minister said.
Under the agreement, the Chinese firm has agreed in principle to provide funds and equipment to PNSC. The cooperation will include ship acquisition, leasing, marketing, and operational services.
The growth proceeds with a series of recent reforms introduced by the ministry to reduce logistics costs and enhance environmentally sustainable maritime practices. These include a 50% reduction in port charges at Karachi Port, Pakistan’s largest deep-sea facility.
“By lowering operational costs and streamlining logistics, we are not only boosting trade competitiveness but also contributing to climate resilience,” Chaudhry stated earlier.
The Ministry of Maritime Affairs also intends to enact technologies like artificial intelligence and drones to better port management and reduce container dwell times by up to 70%.
The MoU, which will remain in effect for a year, was also disclosed by PNSC in a notice to the Pakistan Stock Exchange (PSX).
“This MoU establishes a relationship of mutual cooperation and trust between the parties for the objective of commercial benefits and creating favourable conditions for investment in Pakistan’s maritime sector, as well as exploring global shipping opportunities,” the notice stated.
PNSC, Pakistan’s national flag carrier, was established in 1979 through a merger of the National Shipping Corporation and the Pakistan Shipping Corporation. It monitors a fleet of vessels and maintains a network of agents to manage its international operations.
Shandong Xinxu Group was formed in 2010 in China’s Shandong province, initially specializing in lead-acid battery equipment. In 2014, it grew into the industrial and traction battery market by acquiring Yantai Goldentide Unikodi Battery Co. The firm is among various Chinese companies investing in Pakistan under the China-Pakistan Economic Corridor (CPEC) initiative.
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