In a major development for Pakistan’s shipping industry, a Memorandum of Understanding (MoU) has been signed between the National Shipping Corporation (PNSC) and China’s Shandong Xinxu Group, Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced today.

The MoU, signed by the CEO of PNSC and the Chairman of Shandong Xinxu Group Corporation, marks a major step in expanding maritime cooperation between Pakistan and China, according to the minister. Speaking at the signing ceremony, Chaudhry highlighted the agreement as a symbol of growing bilateral ties and a catalyst for future investment and development within Pakistan’s shipping sector. He emphasized that the collaboration will not only boost regional trade and connectivity but also elevate Pakistan’s standing in the global maritime industry. The partnership leverages the strengths of both nations, aligning their economic goals for mutual benefit.

The agreement outlines a comprehensive collaboration between PNSC, Pakistan’s flagship national carrier based in Karachi, and Shandong Xinxu Group, a leading Chinese enterprise in international trade and shipping based in Zibo City, Shandong Province. This collaboration will encompass joint ventures in the sale and purchase of merchant cargo vessels, including liquid bulk tankers, dry bulk carriers, and container ships, under both joint and individual ownership models, with profit and loss sharing arrangements.

Furthermore, Shandong Xinxu Group will lease vessels to PNSC through various charter mechanisms such as time, spot, and bare boat charters. PNSC will also provide comprehensive commercial, technical, and administrative management services for vessels, covering aspects such as chartering, marketing, maintenance, and regulatory compliance. Crucially, the MoU includes provisions for financing from Shandong Xinxu Group to PNSC for investments in ships and other floating platforms, all governed by commercially competitive terms to ensure mutual benefit and financial viability.

Minister Chaudhry described the MoU as establishing a framework of mutual trust and cooperation, creating a favorable environment for investment in Pakistan’s maritime sector. The agreement is expected to significantly modernize and expand Pakistan’s shipping capabilities.