PNSC Internship Report
-
Upload
shariqkhursheed5334 -
Category
Documents
-
view
799 -
download
5
description
Transcript of PNSC Internship Report
Internship Report
On
PAKISTAN NATIONAL SHIPPING CORPORATION
VARIOUS DEPARTMENTS
Submitted to:
Capt. S. Hashim Hasnain
[Manager (ISM/TRG) CSO of P.N.S.C.]
Submitted by:
Shariq Khursheed
Date:
28-09-2009
P a g e | 1
Acknowledgment
By the Grace of ALLAH, the most Merciful, the most
Beneficial, I am today submitting my internship report, at the end
of my first pragmatic experience and I am glad to have it with
PNSC, where you feel very friendly environment, either you are an
employee, customer or internee. Thirst of learning is inside you,
and whatever the environment, if you're willing to learn, you do.
At PNSC, I had a new, challenging, yet a perfect environment to
learn. My parents' prayers and their teachings were always with
me and hereby I will like to take this opportunity to show my
gratitude to all those who made my internship an adventurous
outwit.
Here I am. I never knew what it all going to be. As I enter
the PNSC workshop at west wharf Road on first floor, it took me a
minute to realize that the person who has very pleasant
personality is the deputy manager of SSD department. At a
glance, I grasped the interesting personality of the deputy
manager and today at the end of my internship; he is one of the
persons I’ll always remember. Sir whatever I learnt from you is
P a g e | 2
always going to be respected, no matter whatever business field I
choose. Those tips are always in my memory bag.
I have no words to gratitude to Mr. Rasheed Ahmed
Siddiqui (Assistant Manager) MIS department for their intellectual
guidance without which it could have been rather difficult for me
to complete this report. I'm really grateful to you sir for clarifying
my concepts and making me learn from your experience.
Whatever I learnt from you will definitely help me in my
upcoming study and the professional life ahead. Thank you so
much for being so co-operative and so helpful every time. I hope
sir I have been up to your expectations.
In the end, I'll like to thank all my other colleagues, Miss
Uzma, Mr. Ghafoor, Mr. Gohar, Mr. Fayyaz & Mr. Minhaj-ur-
Rehman, Deputy Manager SSD Department and all my other
friends and superiors in PNSC, for their unconditional support
and help in making me learn in a good environment.
(SHARIQ KHURSHEED)M.Com (Finance)-2009
University of Karachi, Karachi
P a g e | 3
LIST OF CONTENTS
No. Contents Page No
1 Executive summary 4
2 PNSC introduction 5
3 Significant development 8
4 Vision/Mission 9
5 Brief history 9
6 SSD department 11
7 Commercial department 12
8 MIS department 21
9 Finance department 22
10 SWOT analysis 23
11 Conclusion 25
12 Bibliography 26
P a g e | 4
EXECUTIVE SUMMARY
As we all know very well that time and tide wait for none.
So because this rapid change in time and era we have to cope
with it. During this era I got an opportunity of getting practical
knowledge about the shipping system in Pakistan. So to quench
the thirst of practical exposure and for getting the basic
knowledge about shipping industry I joined PNSC. During four (4)
weeks in PNSC, I gather all necessary information about PNSC.
Efforts have been made to compile this report in such a way
that activates its salient features that will support other trainee in
PNSC in future. I have divided this report into different chapter.
First chapter is about introduction of PNSC. Second chapter
is about the vision & mission. Third chapter comprises of brief
history of PNSC. Fourth chapter relates with the departments of
PNSC. Fifth chapter is concerned with SWOT Analysis, A very
strong analytical & hypothetical tool. Sixth chapter is conclusion.
P a g e | 5
P.N.S.C. INTRODUCTION
PNSC is the national flag carrier managing a fleet of 12
vessels. The Corporation's head office is located in Karachi. A
regional office based in Lahore caters for upcountry shipping
requirements. The Corporation also has an extensive overseas
network of agents looking after its world wide shipping business.
Pakistan National Shipping Corporation (the Corporation)
and its subsidiary companies (together 'the Group') were
incorporated under the provision of Pakistan National Shipping
Corporation Ordinance, 1979 and the Companies Ordinance,
1984 respectively.
The group is principally engaged in the business of
shipping, including charter of vessels, transportation of cargo
and other related services. It also engaged in renting out its
properties to the tenants under the long term lease agreements.
Its registered office is situated at PNSC Building Moulvi
Tamizuddin Khan Road, Karachi.
Pakistan National Shipping Corporation "PNSC" is an
autonomous corporation, which functions under the overall
P a g e | 6
control of the Ministry of Ports and Shipping, Government of
Pakistan. It manages a fleet of 14 ships, real estate and a repair
workshop.
Pakistan National Shipping Corporation (the Corporation),
its subsidiary companies and an associate (together 'the Group')
were incorporated under the provisions of the Pakistan National
Shipping Ordinance, 1979 and the Companies Ordinance, 1984
respectively. The Group is principally engaged in the business of
shipping, including charter of vessels, transportation of cargo
and other related services. The Group is also engaged in renting
out its properties to tenants under long-term lease agreements.
The Group's registered office is situated in PNSC Building, Moulvi
Tamizuddin Khan Road, Karachi except for Pakistan Co-operative
Ship Stores (Private) Limited which is situated at 70/4, Timber
Pond, N.M Reclamation Kemari, Karachi.
P a g e | 7
The PNSC Group consists of subsidiary companies.
SUBSIDIARY COMPANIES
1. Bolan Shipping (Private) Limited
2. Chitral Shipping (Private) Limted
3. Hyderabad Shipping (Private) Limited
4. Islamabad Shipping (Private) Limited
5. Johar Shipping (Private) Limited
6. Kaghan Shipping (Private) Limited
7. Karachi Shipping (Private) Limited
8. Khairpur Shipping (Private) Limited
9. Lahore Shipping (Private) Limited
10. Lalazar Shipping (Private) Limited
11. Makran Shipping (Private) Limited
12. Malakand Shipping (Private) Limited
13. Multan Shipping (Private) Limited
14. Quetta Shipping (Private) Limited
15. Sargodha Shipping (Private) Limited
16. Shalamar Shipping (Private) Limited
17. Sibi Shipping (Private) Limited
18. Swat Shipping (Private) Limited
19. Pakistan Co-operative Ship Stores (Private) Limited
P a g e | 8
The Group owns 55 percent of the share capital of Pakistan
Co-operative Ship Stores (Private) Limited and 100 percent of the
share capital of the remaining nineteen subsidiary companies. All
the fully owned subsidiaries of the Group operate one vessel /
tanker each with the exception of Karachi Shipping (Private)
Limited, Lahore Shipping (Private) Limited and Shalamar Shipping
(Private) Limited.
SIGNIFICANT DEVELOPMENTS
DURING THE PERIOD
During the period three vessels, MV Hyderabad, MV
Malakand and MV Sibi and one tanker, MT Lalazar were disposed
off. These ships had reached their useful lives and further
investment to maintain them was not considered worthwhile.
P a g e | 9
VISION/MISSION STATEMENT
To develop and execute short-term and long-term
business plans to ensure sustainable growth of the Corporation
as the national flag carrier and a lead player in the shipping
industry.
BRIEF HISTORY OF P.N.S.C
In 1947 Pakistan inherited a fleet of four privately owned
cargo ships. In 1963, the National Shipping Ordinance was
promulgated and National Shipping Corporation (NSC) was
established which procured its first used ship, m.v. Rupsa in
1965. The national fleet comprised of some 53 vessels which
were owned by 10 private shipping companies.
The national fleet strength grew to a record 71 vessels just
prior to the separation of East Pakistan and its emergence as
Bangladesh in 1971. The fleet strength declined to 57 vessels
after the separation.
P a g e | 10
In 1974, nine private shipping companies, which had a total
of 26 ships, were nationalized. The national fleet strength
increased to 51 vessels including 26 with the nine nationalized
companies plus 25 ships with the state-owned NSC.
In 1977, 14 ships were inducted in the PSC during the Fifth
Five-Year Plan. Two years later, NSC and PSC were merged to
form the Pakistan National Shipping Corporation (PNSC) which
still remains the sole state-owned shipping corporation. The
total fleet strength increased to 60 ships with the induction of 14
vessels in late 1970s and early 1980s.
Currently, the PNSC manages a total of 12 vessels which
includes 8 Multi-purpose Cargo ships, 3 Aframax Tankers, and 1
Bulk Carrier and the Dead Weigh tonnage is 636,182. Pakistan
Tanker Company, a subsidiary of PNSC also has a single tanker
for crude oil imports.
PNSC enjoyed a complete monopoly till early 1990s when
the shipping sector was deregulated by the then Nawaz Sharif
government.
P a g e | 11
During my internship training I visited the following departments:
1. SSD DEPARTMENT
2. COMMERCIAL DEPARTMENT
3. MIS DEPARTMENT
4. FINANCE DEPARTMENT
1. SSD DEPARTMENT
The function of store and supply department is to store all
types of inventory in shelf through bin card system and requisite
the same inventory to the workshop and on vessel. SSD
department works on four (4) main heads.
1. Stock
2. Workshop
3. Vessels
4. Miscellaneous (provide technical & material support)
P a g e | 12
The department performs all functions involved procurement
through LT (lowest tender) and is charged with the custody and
control of all vessels stores and spare parts placed at store. The
department is responsible for the purchasing function, actually
what is to be purchased and in what quantity. The overall
responsibility of the SSD department is to support the material
needs of the ship. To do this, supply/goods must procure,
receive, inspect, store, issue, and account for general
stores, repair parts, equipage, equipment, ship’s store stock,
clothing, and subsistence items. SSD department divides the
inventory into 23 main groups and in various subgroups. Stock
outflow is taken place into two place, (1) Ship Repaired (issue
stock for the purpose of ship repairing) (2) Ship Supply (issue
stock for the onboard requirement).
2. COMMERCIAL DEPARTMENT
Commercial department is like a backbone of PNSC. A large
amount of revenue is generated by this department. Commercial
department performs worldwide tramping and chartering
operations. It also operates three Aframax tankers on regional
P a g e | 13
routes. The company manages the following fleet of 10 multi
purpose cargo ships, 03 Aframax tankers and one bulk carrier. In
FY06 MV Kaghan, a bulk carrier was added to the fleet making
the fleet size total of 15 vessels.
The total capacity of the PNSC managed vessels has now
increased from 570466 DWT to 636182 DWT. PNSC operates on
two major routes namely trade area west with regular calls at
Karachi, Dubai, Dammam, Abu Dhabi, Kuwait, Bander Abbas,
Genoa, Marseilles, Bremen, Antwerp, Tarragona, Casablanca,
East/West Africa and Brazilian ports and the other route called
trade area west with regular calls at Karachi, Colombo,
Singapore, Xingang, Shanghai, Yokohama, Osaka and Busan.
Commercial department can be divided into three main sub
departments.
2.1 Commercial/ Lines
Function of this department is to oversee the following sub
departments
(A)Trade Area West
(B)Trade Area East
P a g e | 14
(C)Tanker
(D) Chartering
(A) TRADE AREA WEST
Trade Area West encompasses in the following routes.
Regular calls at Karachi , Dubai , Dammam , Abu Dhabi ,
Kuwait , Bander Abbas , Genoa , Marseilles , Bremen , Antwerp,
Tarragona , Casablanca , East/ West Africa and Brazilian ports.
Other ports are also called sub to inducement.
(B) TRADE AREA EAST
Trade Area East encompasses in the following routes.
Regular calls at Karachi, Colombo, Singapore, Xingang ,
Shanghai , Yokohama , Osaka , Busan. Other ports are also
called sub to inducement.
Whenever any cargo imports &/or exports, following
different mode/capacity of container are used.
P a g e | 15
CONTAINER BY TYPE OF CAPACITY
FCL ----- Full container loadTo load container at his maximum level/ volume/weight.
LCL ----- Loose container load
To load container below his maximum level/ volume/ weight.
CONTAINER BY MODES OF SHIPMENT
CY ----- container yard
CFS ----- container freight station
CY/CY Container Service
The CY/CY (read as 'CY to CY') container service---door-
to-door container service or house-to-house container service--
-broadly means that the whole container received by the carrier
is packed at the shipper’s premises, and the delivery of that
same whole container to the consignee's premises.
P a g e | 16
CY/CFS Container Service
The CY/CFS (read as 'CY to CFS') container service (door-
to-port container service). The container is shipped by the
shipper to the consignee in a loose form. Whole container will
open at the terminal and The consignee arranges the delivery of
the loose cargo from the container freight station to his/her
premises.
CFS/CY Container Service
The CFS/CY (read as 'CFS to CY') container service (port-to-
door container service). Shipper has to make an arrangement to
ship the goods to the port and the delivery of the loose cargo
from the container freight station to the consignee's premises.
CFS/CFS Container Service
The CFS/CFS (read as 'CFS to CFS') container service---
port-to-port container service or pier-to-pier container service-
--broadly means that the delivery of the loose cargo to the
carrier's container freight station at the port of origin is packed
into the whole container, and that same whole container is
P a g e | 17
emptied at the carrier's container freight station at the port of
destination. The consignee arranges the delivery of the loose
cargo from the container freight station to his/her premises.
(C) CHARTERING / TRAMPING
Worldwide tramping operations includes (a) Time charter
(b) Voyage charter
(D) TANKER OPERATIONS
PNSC operates three AFRAMAX tankers on regional routes.
2.2 OPERATON
Operation department is also can be divided into three main
departments.
(A) PORT CAPTAIN DEPARTMENT
The primary job of the port captain department is the
stowage of cargo aboard ship, a complicated process explained
earlier (chapter 9). The position of the port captain has been
P a g e | 18
established at ports where large amounts of cargo are handled
in order to expedite the turn-around of vessels in port an to
assist the mates. The port captain at a particular port knows what
is on the dock and committed for stowage, matters that the
mates cannot know until arrival.
To plan the stowage, the port captain should know very well
the information regarding items booked, their ports of
destination, their weight and stowed tonnage, and the type of
stowage required.
(B) CONTAINER LOGISTIC
Key functions of container logistic department are:
9 Generate revenue and claim no expense towards the container service.
9 Lease out the container.9 Performs custom department formalities.9 Facilitate own department in different location (Hulledge) 9 Performs stuffing/destuffing. 9 Slot charter vessels.
Container logistic department transports container worldwide
in different type of technology such as:
P a g e | 19
Bulk Cargo
In bulk cargo whole cargo is loaded openly without any
special arrangement. E.g. Wheat, rice, cotton and fertilizers are
loaded in bulk and openly.
Break Bulk Cargo:
In break bulk cargo technology cargo ships replace bulk
cargos. In cargo ships cargo is loaded in different sections (break
bulk cargo) in bulk. E.g. cargo is loaded in different sections like
cotton bails, industrial raw material and raw iron. All material is
loaded in packing of cartons.
Containerization:
Most recent mode of transportation stared in early 70s
available in different sizes. 20 feet and 40 feet containers are
most widely accepted size. Ship size is measured in TEU and
DWT.
(C) IMPORT & EXPORT DEPARTMENT.
Export unit is responsible for the shipping papers required
for export; in the import unit, for the documents required in
importing. In import & Export some documents are very
P a g e | 20
important, these documents includes the b i l l o f lad ing,
permission from custom, SBP, mat receipt & manifest etc.
2.3 BILLS DEPARTMENT:
Bills department procures certification of freight invoices,
arrange for surrender of bills of lading, and facilitate collection &
payment of freight. Freight revenue arises from revenue tons
determined by the weights and measures of cargo and the dock.
The tonnage and rates are entered on bills of lading issued for
the given voyage. The freight cashier is required within a short
period to account for all moneys indicated on the manifest as
collectible from shippers or consignee at his port of the voyage
in question.
One the other hand bills departments concerns with the
accounts payable, trade accounts payable are rather closely
current, that no trade accounts payable ledgers of the usual
types are maintained by the unpaid invoices.
P a g e | 21
3. MIS DEPARTMENT
MIS department of PNSC ass is t overa l l a l l d i f ferent
departments in many aspect. This department provides a bridge
through which all departments interact with each other. It
monitors information system and keep up to date all data base
through online transaction process (inside PNSC) and in some
area with batch processing (outside PNSC such as ship in transit).
Management information system section prepares the Trail
Balance via the posting of journal voucher through coding that
made in computer system by using the SES OFFICE software.
MIS section receives JV from SSD department, Commercial
Department, Finance Department, Tax Department and post it in
specific code, these posting adjust in trail balance automatically
from programming.
Every section has coding system. They post these vouchers by
using these coding systems. Basic SES OFFICE converts it in to
Trial Balance by using these codes in specific heads. MIS
department also runs Score Card. Score Card is very important
software that records each and every thing either relates inside
P a g e | 22
the PNSC or outside. I t provides very important updated
information to Executive level officer including directors and
chairman etc in order they can make timely decision. MIS
department also provides the facility of programming.
In addition, MIS department gives technical assistant to all the
departments if they encounter with any system troubleshooting
either hardware problem or software problem.
4. FINANCE DEPARTMENT
Finance department is responsible to manage and allocate the
fund. Find the resources of obtaining fund and makes the best
possible strategy to invest those funds in order to get optimum
return t hat covers your cost of capital and provide future
benefits. It is also responsible for the overall direction and policy
implementation. It is also responsible for coordination of the
Finance Department, which includes budgeting, accounting,
purchasing and treasury functions. The Finance department also
provides financial advice to the top level of management.
P a g e | 23
Accounting section within finance department maintains the
accounting system, the payroll system, the fixed asset system,
reconciles bank accounts, and prepares various financial reports.
The Treasury Section provides centralized cashiering, collection,
collects all receivables, and audits various tax sources for
compliance.
Finance department also prepares Annual Budget. The
Purchasing unit procures all services, supplies, and equipment
for all departments of the PNSC, and surpluses items no longer
needed by the PNSC.
SWOT ANALYSIS
S: STRENGHT (relates internal environment)
W: WEAKNESS (relates internal environment)
O: OPPORTUNITY (relates external environment)
T: THREAT (relates external environment)
P a g e | 24
STRENGTH
A large capital investment
Worldwide operation
Skilled labor/employees
Having its own ships/vessels
Both marketing policy (skimming & penetrating)
WEAKNESS
Over staff organization
Lack of coordination between different departments
Lack of proper planning and absence of coordination with
other shipping companies
A bias policy of management towards the selected staff
Low level skill staff.
OPPORTUNITY
Lucrative strategic geographic location
Being a national flag carrier approximately 99% government
base organization hire PNSC services for their shipment
P a g e | 25
THREATS
Limited amounts of import and export due to financial
crunch in Pakistan
High charges as compare to other shipping companies
worldwide
High duty and taxes from the government
Dilapidated vessels.
Conclusion
For as long as one remembers, private sector is not allowed
to play any part in the shipping sector which enjoyed absolute
public sector monopoly. The number of vessels and Dead Weight
Tonnage (DWD) of the PNSC fleet has been on continuous decline
over the years.
Today PNSC fleet comprises just 19 vessels less than one-
fourth its fleet strength two-decades-and half ago. The break
bulk vessels have long past their economic lives. the average age
being over 18 years.
Ships and all floating crafts purchased or bareboat
chartered by a Pakistani entity and flying Pakistani flag will be
P a g e | 26
exempted from payment of income tax till 2020. Instead, they
will be liable to pay tonnage tax at the rate of one US dollar per
gross ton per fiscal year in lieu of income tax irrespective of the
earnings or whether the operator made a profit or incurred a
loss.
Despite enjoying absolute monopoly, PNSC has remained a
financially troubled organization during the big part of its
existence since it was established in 1979 when Pakistan
Shipping Corporation and the National Shipping Corporation
were merged. But since three to four year PNSC has improved
their performance inspite of old technology. For the year ended
June, 30 2008 PNSC Group achieved a turnover of Rs 10,754
million as against Rs 9,089 million last year with healthy growth
in freight earnings, both dry cargo and liquid cargoes. Healthy
Gross Profit of Rs 3,476 million was achieved as against Rs 2,593
million last year.
BIBLIOGRAPHY
www.scribd.com
http://books.google.com.pk/books”oceantransport”
www.pakistaneconomist.com/issue1999/issue35/cover.htm
www.pnsc.com.pk