Pakistan’s Historic Move: SIFC Revives Domestic Shipbuilding with New Feeder Ship Project

The government of Pakistan, through its Special Investment Facilitation Council (SIFC), has taken steps to revive a project aimed at building a domestically constructed containership, which will serve as a feeder ship for the national shipping corporation. This initiative marks the first time in 40 years that a large commercial vessel will be built in Pakistan.

SIFC, established in 2023 to attract and facilitate foreign investment, reported that after four months of efforts, it successfully revived the project to construct a 1 100 TEU feeder ship for the Pakistan National Shipping Company (PNSC).

The project is expected to enhance PNSC’s share in the national feeder container market, reduce reliance on foreign shipping companies, and promote economic self-sufficiency in maritime trade. The contract, valued at $24,75 million, allows PNSC to acquire the vessel at a significantly lower cost than international market prices, saving millions in foreign exchange and bolstering Pakistan’s maritime industry.

The initiative was first announced in February 2024, with a contract signing ceremony held with Karachi Shipyard & Engineering Works, the only shipbuilder in Pakistan. This project is seen as a significant advancement for the shipbuilding industry and the company’s competitiveness on an international scale. The shipyard is capable of constructing vessels up to 26 000 dwt, including bulk carriers, tankers, tugs, dredgers, ferries, and fishing boats, although most of its work has been focused on government contracts for naval vessels.

Officials noted that the Pakistan Navy is collaborating with the Karachi shipyard and PNSC to ensure the project’s success. SIFC mentioned that the project had been stalled for 277 days, but through proactive engagement and consensus-building among stakeholders, it has now progressed. The agency emphasized that its timely intervention has been crucial in reopening a significant chapter in commercial shipbuilding, representing a major step toward revitalizing Pakistan’s blue economy.

While no specific timeline for the project has been provided, the vessel is intended for deployment in a feeder service, as PNSC aims to expand its involvement in the container trade. Currently, PNSC operates a fleet of around a dozen ships, primarily tankers and bulk carriers, with a total deadweight tonnage of just over 930 000 dwt.