This has been done in light of the directives of the Economic Co-ordination Committee (ECC) which clearly state that all government organisations should designate the national shipping line ie PNSC as their shipping partner of choice. The national energy giant had recently signed a Contract of Affreightment (CoA) with PNSC to transport furnace oil from foreign ports to Pakistan's shores.
Already this CoA is bearing fruit and expected savings in one year are estimated to be approximately $25 million which shall translate into savings of $125 million in 5 years time span. Furthermore from March 2013, the company will start importing motor gasoline through PNSC on FOB basis.
This will save another $10 million on an annual basis and in the next 5 years estimated savings due to this arrangement are expected to be $50 million. PSO's partnership with PNSC shall result in total savings of approximately USD 175 million over a time period of 5 years. This partnership between 2 national companies will not only save precious foreign exchange as outlined above but will also help in creating employment opportunities in the oil shipping business.-PR