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Karachi Shipyard & Engineering Works Limited ( KSEW )

Karachi Shipyard & Engineering Works Limited ( KSEW ) is the only Heavy Engineering establishment of the country that is catering for its Ship Building, Ship Repairing and Heavy/General Engineering requirements. In order to undertake construction of F 22P Frigate for Pakistan Navy KS&EWhas undergone extensive up gradation during 2008-09. This has enhanced its capacityto compete with international contenders in shipbuilding industry. KS&EW has a comprehensive setup for repair of naval and commercial vessels. Pakistan Navy, Pakistan Maritime Security Agency, Karachi Port Trust and Port QasimAuthority are regular customers of KS&EW.

There are three ship building berths, each equipped with luffing cranes and alliedfacilities where construction of vessels can be undertaken simultaneously. It has played a historical role in transferring of technologies and broadening the industrial base of the country. KSEW is the only shipyard in Pakistan and has two dry docks of 18,000 Tons Dead Weight (‘TDW’) and 26,000 TDW capacity respectively. It has the capability for building large vessels including Cargo Ships, Oil Carriers, Bulk Carriers and Warships, and Marine Craft including Tugs, Barges, Ferries, Fishing Trawlers, Dredgers and Special Crafts. Furthermore, KSEW has the facilities to produce a wide range of heavy engineering products including Heavy Steel Structures, Pressure Vessels, LPG Storage Tanks, Industrial Boilers, Overhead and Portal Cranes, complete Sugar and Cement Plants, etc.

Karachi Karachi

Karachi Shipyard & Engineering Works Limited ( KSEW ) Karachi Shipyard & Engineering Works Limited ( KSEW )

The Prime Minister of Pakistan, chaired a meeting on Revitalization of Karachi Shipyard & Engineering Works Ltd. on 24 Dec 2004 in the Prime Minister’s House, Islamabad. It was decided that Privatization Commission to undertake privatization of the KSEW on as is where is basis forthwith. The process to include strategic partnership with CSTC China or any one else interested in this option. The process to be completed within six months. It was also decided that Pakistan Navy Task Force to commence preparatory work concurrently for partial merger with PN (keeping commercial window open) and Liquidation of the Rest (Option 2), if Privatization Commission is unable to privatise / ensure strategic partnership of the shipyard.

Paid up capital is Rs. 464 million which is entirely owned by the Government of Pakistan (GoP). Before going for privatization, KSEW’s liabilities of Rs. 3 billion and losses of Rs. 2 billion will have to be taken up by the Government. It is estimated that KSEW would need an investment of about Rs.3 billion to undertake proper BMR. This is in addition to the taking up of liabilities by the GoP of Rs.3 billion and losses of Rs.2 billion.

The Financial Advisors, i.e. Consortium of Orix Investment Bank Pakistan Limited, Terra Marine S.A. Switzerland, HTSPE International, Appledore International, KPMG and Mohsin Tayebaly & Company, are in the process of carrying out a detailed analysis (due diligence) of KSEW. The scope of work was divided into two stages In Stage I, the Financial Advisor (FA) conducted the required due diligence (legal, financial, technical etc) , property survey, assessment of KSEW’s products and market(s), competition etc. and a valuation exercise to determine the Fair Market Value (FMV) based on the market potential of KSEW. The FA also critically examined the various options before recommending the most viable privatization option. In stage II, the FA led the privatization process of KSEW and closure of the transaction, including but not limited to inviting expression of Interest, developing the Request for Statement of Qualification, determining the pre-qualified bidders on the basis of the SOQs and the pre-qualification criteria, and preparing and finalizing all legal documentation in relation to the privatization of KSEW.

In September 2004 the government decided to let the Pakistan Navy administer the Karachi Shipyard to improve the organisation’s financial health. Parliamentary Secretary for Defence Major (r) Tanvir Hussain said that the Karachi Shipyard has been a ‘dead horse’ since 1955, which is why the administration would now be handed over to the Pakistan Navy. He said the Defence Ministry has asked the Finance Ministry for Rs 400 million so it can pay the dues and salaries of Karachi Shipyard employees. “The employees have not received their salaries for the last four months,” he said.

Situated at West Wharf-Karachi and spread over an area of 29 hectares ( 71 acres ), KSEW has a large Shipbuilding Hall, three Shipbuilding Berths, two Dry Docks, three Foundries ( Iron, Steel & Non-Ferrous ), Fabrication Shops, a well-equipped Machine Shop and other supporting facilities like Carpentry, Pipe Fitting and Light Steel Fabrication Shop. Karachi Shipyard & Engineering Works Ltd has planned since 2008 to install Ship Lift & Transfer System and Associated Machinery & Equipment to provide docking and repair facilities to Surface Ships, Submarines and Commercial Vessels. The Government of Pakistan has approved the project and initial feasibility and engineering studies have been completed in this regard.

This company is entirely owned by the Government of Pakistan and managed by a Board of Directors with Managing Director as the Chief Executive. KSEW is working as an autonomous commercial organization under the Ministry of Defence Production Government of Pakistan. KSEW was established in mid-1950s as a project of PIDC and incorporated as a public limited company in 1957.

KSEW is basically designed to build and repair ships. Since 1957 when it commenced its commercial production, it has built over 430 vessels of different types and sizes for different nations. It is well equipped to build various types of ships upto 26,000 TDW including Tugs, Dredgers, Hopper Barges, Ferries, Fishing Trawlers, Launches & Special Purpose Craft. There are three Ship Building berths, each equipped with cranes and allied facilities where construction of vessels can be undertaken simultaneously.

KSEW possesses an elaborate Ship Repair setup where it has so far repaired over 5000 Vessels, both of national as well as foreign origin. Many renowned Navies of the world including Pakistan Navy and various Shipping lines and Port authorities are KSEW's regular customers. Modern and well-planned facilities exist in KSEW for undertaking above water & under water repairs of Ships and off shore Drilling Rigs. The ancillary facilities include Shore electric supply, Compressed air, Oxygen, Acetylene gas and Natural gas in pipelines and cylinders as well as Fresh and Sea water supply lines and Fire fighting system. The well-equipped Machine Shop is in attendance besides other readily available facilities for supporting Ship repairs of all kind.

For above-water repairs of Vessels, Quay Walls of 500 meter on the northern side and 165 meter on the southern side are available. Above water repairs for Vessels of any size and dead weight can be undertaken not only at KSEW premises but also in Karachi Harbour and even at outer anchorage. Similarly any alteration/conversion on hull/ super structure can be undertaken. For marine boilers, insulation, lagging, flooring, brickwork can be carried out at the yard. Facilities also exist for repairs of Steam and Motor Vessels, both Main and Auxiliary machinery and all types of marine and stationary Boilers. Ships having draught of about 20 feet can be accommodated in graving docks, while vessels with draught of upto 15 feet can be berthed at the quay walls.

KSEW can rightly be called " the first major steel industry of Pakistan ". Although it is designed for series production of ocean going vessels, its role in the support of industry and developmental engineering is very well known and prominent. It has a long record of service to industry and during slump in the shipping industry, has promoted further diversification of its General Engineering activities. It has one of the largest and well-equipped engineering workshops of the country, the foundry (15 metric ton a piece) Steel Foundry (3 metric ton a piece) and Non-Ferrous Foundry (750 Kg. a piece) are working in conformity to ASTM, BSS and DIN norms.

An independent department is responsible for the quality control, which works according to customer's as well as international standards. Karachi Shipyard emphasizes on quality manpower through regular training programs designed to meet the international standards. For this purpose a Shipyard Institute of Technology (SIT) has been established and affiliated with Sindh Board of Technical Education.

KSEW has experience in handling a wide variety of steel construction work. Power house building / Boiler structure, pedestrian overhead bridge, steel frame buildings, platforms, gantries for cranes, bridges, girders, towers for power transmission, broadcasting and telecommunication etc. are some of the examples. Similarly hydraulic steel work such as sluice, radial, flap, regulator gates, tunnel shafts, penstocks etc. for dams, barrage and headwork is also carried out.

KSEW offers complete sugar plants on turnkey basis. So far KSEW has manufactured various plants in the range of capacities from 2000 to 500 TCD which are based on FIVES-CAIL BABCOCK (FCB) FRANCE design. These plants are fully automatic and have the latest technology. KSEW is a major source of supply of steel structures, conveyors, hoppers, bucket elevators, piping, manganese steel lining plate and cast steel components for kiln, ball mills etc. for the cement factories. All product undergo inspection and tests by our quality Control Department at various stages of of manufacturing according to internationally established inspection procedures and methods.