The Directors of Pakistan International Bulk Terminal Ltd (PIBT) has released the detailed financial statements for the period ended 31 December 2019. During the period, Pakistan’s only coal and clinker/cement terminal at Port Muhammad Bin Qasim has handled 44.07Mt cargo against 39.66Mt in the same period last year. It depicts a modest growth of 11.1 per cent, with consistent performance.
The management of the company is focussing on strategies to increase the efficiency in cargo handling operations, to provide unparalleled services to its customers, said the terminal’s CEO Sharique Azim Siddiqui, in the half-yearly report.
PIBT has earned a net profit of PKR864m (US$5.43m) in 6MFY20 against loss of PKR1.4 bn in the same accounting period of last year.
A local research house expects the terminal to increase its profitability as soon as it is connected with railway line as per Pakistan railway plans to construct railway track to tie up PIBTL’s terminal with the railway network, subject to approval from the Planning Commission. Going forward, experts expect this will bode well for terminal utilisation for both coal and cement handling in addition that this will improve terminal use as it provides a more cost-effective solution to its consumers.
Coal demand from the cement sector likely to improve
Cement demand has increased by 6.5 per cent in 6MFY20, while momentum is likely to continue once construction of Dams and Naya Pakistan Housing schemes start to materialise. Similarly, coal demand from the power sector is also likely to increase once electricity demand increases from April onwards. It is estimated that Pakistan’s coal demand is likely to reach 32Mta, driven from both power and cement sectors in FY23.