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Due to High cost production,KS&EW lost the construction of 4 Maritime Patrol Vessels

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http://blogs.dunyanews.tv/13011/shipbuilding-industry-suffers-due-to-govts-lack-of-interest/

SHIPBUILDING INDUSTRY SUFFERS DUE TO GOVT’S LACK OF INTEREST
BABER ALIAPRIL 30, 2016

Shipbuilding is an attractive industry. Shipyards create quality jobs and support economic growth. Shipyard activities include ship construction, repair, conversion, and alteration. They also include the production of prefabricated ship and barge sections, and other specialized services.

Karachi Shipyard and Engineering Works Ltd is the only high tech shipyard in Pakistan. KS&EW primarily sustained through government subsidies and orders from the Pakistan Navy. Government of Pakistan’s lack of interest in this sector makes the situation worse. In 2014, government decided to set up two new shipyards at Gwadar and Port Qasim, with investments from Japanese and Korean firms on build, operate and transfer (BOT) basis. But since then, the only good news was given by Rana Tanveer Hussain, Minister for Defense Production, on 6 October 2015 that summary of Gwadar shipyard is waiting for Prime Minister’s approval. Not yet approved. It takes five years for a shipyard to be completed.

In 2015, China and Pakistan signed an agreement of 6 Maritime Patrol Vessels (MPV) for the Pakistan Maritime Security Agency. According to the agreement, construction of ships will be undertaken at Karachi Shipyards & Engineering Works (KS&EW) or builder’s shipyard, as commercially viable.

This year, steel cutting of first MPV was held at Gouangzhou Wenchong Shipyard on 29thJanuary. Due to high cost production, KS&EW lost the construction of 4 ships. Just because of Transfer of Technology agreement this year KS&EW will construct only 2 ships out of 6. According to the planning commission (PCI), unit price of each 600T MPV is USD 22.5 million at KS&EW which is $ 4.5 Million more than builder’s shipyard.KS&EW has to be competitive, either in terms of production costs or in terms of technological sophistication. Government should answer why KS&EW lost 4 ships and reasons of high cost. Cost of production in Pakistan is low but government’s mismanagement and poor governance is making it high.

Pakistan shipbuilding industry needs more shipyards. Its importance becomes more when under-construction ship lift and transfer system at KS&EW was stalled due to filing of case in High Court and Supreme Court by the unsuccessful bidder. After receipt of Supreme Court verdict in KS&EW favour, the project progress has recommenced and the contract for civil works has been awarded on 10 January, 2014.

Government should take shipbuilding sector seriously. It’s not just about signing some contracts and building few vessels under transfer of technology. Government’s claims to have achieved self-sufficiency in warship construction appear meaningless when we see this fact that KS&EW can certainly not construct warships through purely indigenous means. Such constructions rely massively on foreign suppliers for almost all the equipment, weapons, sensors, machinery, electronics and even shipbuilding designs and material.
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Well here the government of Pakistan is making a mistake.
Shipbuilding is a very long term action which starts reaping benefits only by middle term.
One cannot expect to be economically successful from the first ship. 4 Million is not a big price.

The experience and techniques it imparts takes the shipyard capability 1 notch up.
 
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We are expanding KS&EW as the current spapce and capacity is does not suffice the needs of PN. Deatils and causes of delays etc in projects are given below. Had they not shifted the above mentioned program to China, it wud have resulted in long delays and catastrophic results. It wud be better to wait till it operates on full capacity.

http://www.defensenews.com/story/de...ilding-china-frigates-dockyard-ksew/71074464/

Not to forget

http://quwa.org/2016/04/28/ksew-will-produce-4-next-generation-aip-equipped-submarines/

So in current scenario its all about prioritization as hands of KS&EW are already quite full.
 
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Well here the government of Pakistan is making a mistake.
Shipbuilding is a very long term action which starts reaping benefits only by middle term.
One cannot expect to be economically successful from the first ship. 4 Million is not a big price.

The experience and techniques it imparts takes the shipyard capability 1 notch up.
Yap ,its a strategic industry and needs long term moves without delays. Gov knows that SL&TS is under installation(will be operational end of 2016), which can be expected to significantly enhance KSEW,but they not plan accordingly ,proposal of new shipyards was presented in the year 2008.
Even a small shipyard can tookaway extra burden from KS & EW ,such as small medium boats/ships,industrial manufacturing and repairs.
@shah1398
Isn't SHip lift and tranfer system mention there?Sorry,i can not close my eyes ( commercially viable).how about losing the construction of 4 subs? .well its a Navy order (we might not see any offical document like MPV)
Not shifted? Anyways there is no second opinion KSEW should turn itself into commercially vibrant shipyard.look at the French deal out of 3, 2 were build in Pak :)
 
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No, They have officially acknowledged the construction of 4 subs in the induction ceremony of LCMs in Pakistan Navy.
Bro again "those which KSEW not constructing".4+4=8 as 4 will be build in china.(but no comment as no offical document is yet public regarding subs funds" like MPVs .)

https://www.rt.com/news/340918-australia-submarines-contract-france/
AU$50 billion ($38.5bn), has been awarded to a French company which will build 12 subs to replace and double the size of the Royal Australian Navy’s currently outdated submarine fleet.
Announcing the winner, Turnbull stressed that the new contract will result in more jobs as the new submarines are set to be built in Adelaide's ASC shipyard. At least 2,800 new jobs will be offered .


just read it, and see how these nations fight for jobs and skilled workforce
http://www.reuters.com/article/us-australia-submarines-japan-defence-in-idUSKCN0XQ1FC

Augusta SUBS : Again out of 3 , 2 subs were build in KSEW
Now for Aus ,France will build all 12 subs in Australia
and we are not thinking any thing in larger picture for our Industry.
Just compare Pakistan China friend ship with below lines
French PM says all Australian submarines to be built in Australia
http://uk.reuters.com/article/uk-australia-submarines-idUKKCN0XT0C5
 
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The news is rather misleading and may be a attempt to get more money from the government or the government is slow is funding ongoing projects. KSEW is going through major upgrade including a half a billion dollar ship lift and transfer system which will allow it to construct or repair thirteen ships of up to 7000 tons simultaneously. Plasma cutting shop has already been set up. The Ship Lift and Transfer system and modular construction will make production much more efficient and lower cost. They would be able to construct 4 subs simultaneously. I think the system is year or so away from completion
 
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600T MPV is USD 22.5 million at KS&EW which is $ 4.5 Million more than builder’s

Government’s claims to have achieved self-sufficiency in warship construction appear meaningless when we see this fact that KS&EW can certainly not construct warships through purely indigenous means. Such constructions rely massively on foreign suppliers for almost all the equipment, weapons, sensors, machinery, electronics and even shipbuilding designs and material.

Shipbuilding is a very long term action which starts reaping benefits only by middle term.
One cannot expect to be economically successful from the first ship. 4 Million is not a big price.

$4.5 million more is nothing. The builder's shipyard has all the necessary equipment, sensors, mahinery, electronics, and materials on site, or close by limiting the transportation cost. Not to mention they designed the ships based on what they had on hand.

You're talking about shifting the entire project to Karachi.That too to a country who's steel mill isn't even running, probably causing the KSEW to ship in the steel from China.

If Pakistan wants to make the costs of ships cheaper, it's going to have to design it's own. Start small, make a Patrol ship or a training corvette for the cadets.

In 2014, government decided to set up two new shipyards at Gwadar and Port Qasim, with investments from Japanese and Korean firms on build, operate and transfer (BOT) basis. But since then, the only good news was given by Rana Tanveer Hussain, Minister for Defense Production, on 6 October 2015 that summary of Gwadar shipyard is waiting for Prime Minister’s approval. Not yet approved. It takes five years for a shipyard to be completed.

Now this is interesting. Japan and S. Korea will foot the bill to make the shipyards, operate them for a few decades and then give them to Pakistan. And the fu<king government hasn't even approved this.

There are hundreds of acres out in Gwardar and Oamara and the government cant lease them out?

A BOT for some of you who dont know. Means in this case; the Pakistani government will provide the land to the companies who will build the shipyards then staff them with locals with oversight from the companies who will fill it with orders, and after a few decades will give them to Pakistan.

S. Korean shipyards have 30% of the global ship building market. And have orders for ships for years. The lower costs in Pakistan will allow the Koreans to gain even more market share. The spillover will cause the Pakistan Steel Mills to be filled with orders for the ships, and potential for the Koreans to invest in that too.

Sometimes I wonder, why is common sense so .... scarce?
 
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not all, one is in our neighborhood, and one is about to become President of USA .. so we are not alone :)

Modi ain't stupid, just yesterday news came in that the National carrier (Air India) has become profitable after almost a decade
 
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