Steel Container Manufacturing Unit

1
Steel Container Manufacturing Unit

• Introduction
• Need Assessment
• Proposed Project
• Governance
• Financial Evaluation

2
Steel Container ManufacturingIntroduction

• Increasingly in use for transportation of most
  types of cargo except for certain bulk items
• Increasing importance of containerization
• Pakistans import bill on container purchase and
  leasing has increased manifold

3
Steel Container ManufacturingNeed Assessment

• Key players in container business
• Shipping companies
• Containers leasing companies
• Container manufacturers
• The demand for containers is expected to grow by
  over 10 p.a in the coming years
• 1.0 million TEUs (Ton Equivalent Units) of
  containers will be needed each year
• The world container fleet is estimated to reach
  about 20 million TEUs by the year 2005, doubling
  the fleet in ten years
• Pakistan has a demand supply gap of about
  30,000 TEUs p.a

4
Steel Container ManufacturingProposed Project

• The objective of the Project is to set up Steel
  Container manufacturing and containers repair
  plant
• May be set up at KSEW
• In JV with a reputable foreign firm
• Any other existing large engineering workshop may
  also setup the Unit

5
Steel Container ManufacturingGovernance

• It is proposed that KSEW or the private party may
  enter into a JV arrangement with a South Korean
  Firm, WIN Corporation (a subsidiary of Hyundai
  who had previously shown interest)
• WIN Corporation would provide technology together
  with all the requisite technical assistance
• The KSEW / private party will provide manpower,
  space and infra-structure. Marketing efforts will
  be joint.

6
Steel Container ManufacturingFinancial Evaluation

• Investment - Rs. 1.5 billion
• IRR - 22.