Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2015

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

This report presents the feasibility report of Long Range-1 Product Tanker for Pakistan National Shipping Corporation (PNSC). PNSC has not had such category of vessel and therefore, it’s an addition of new category of vessel in the PNSC current fleet.

Initially in this report the reason of the report is discussed and then a brief introduction of PNSC is presented with the discussion on its Business and Fleet. PNSC Organogram is also presented for clear understanding of how the organization is structured.

Then the literature review is conducted to evaluate the literature regarding the Tankers and their classifications regarding the products, size and machinery. The data for preparing feasibility report is gathered through the focus groups designed based on the divisions of the PNSC. The data is then analyzed to prepare the detailed feasibility report.The feasibility analysis includes:

  • Need Analysis,
  • Technical Analysis,
  • Socio-economic Analysis,
  • Environmental Analysis, and
  • Financial Analysis

The need of LR-1 Product tanker is because PNSC has not have its own capacity to ship PSO’s MOGAS shipment, thus, PNSC has to chartered-in for these shipments and if it purchase Product tanker it will reduce chartering costs. Technically assumed LR-1 tanker with age of 10 years is considered to be modern fleet and is smaller than the current vessels of the PNSC fleet and PNSC have same hull vessels present too, thus, PNSC crew members has technical capability to this vessel. Furthermore, Purchasing LR-1 tanker is also in the socio-economical interest of the country since, it will save millions of dollar for Pakistani foreign reserves. In addition, LR-1 product tanker’s hull design is environment friendly and is equipped with modem recycling and waste management system.

Financial analysis is also conducted by consolidated the datain the assumptions sheets and the information gathered is also used in the conclusion drawn.The assumptions sheets are then used to make the projections for Profit and loss. The profit after tax is then used to calculate cash flows for each year for the 15 years.In the end. Net Present Value (NPV) is calculated based on the cash flows calculated. The positive Net Present Value means that the Project cash inflows are more than the Project cash outflows.

The conclusion is then drawn based on the above mentioned aspects that LR-1 Product tanker is feasible for the PNSC.

Pages

67

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