0.1 million tons of urea import: TCP establishes two LCs worth $60 million
July 01, 2011: Trading Corporation Pakistan (TCP) has successfully established two Letters of Credit (LCs) worth $60 million for the import of 100,000 tons of urea. Sources told Business Recorder on Thursday that after opening of two LCs, bidders have submitted details of shipments, in which they have confirmed that imported urea will reach Pakistan in the first week of July.
Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, TCP through a gallop tender notice finalised deals for the import of 10,000 tons of urea from international sources for Kharif crops. The import under Saudi Development Fund was delayed and supply of 50,000 tons of urea from Saudi Basic Industries Corporation (Sabic) is also expected in the second half of July 2011.
Special arrangements have been made by TCP for the maximum availability of urea and over 150,000 tons of commodity (including 50,000 tons of Sabic) will be available in the domestic market during this month, from external sources, to facilitate the farmers to meet their urgent need of urea for Kharif crops.
In response to TCP tender, a quantity of 50,000 tons was awarded to the lowest bidder Ms Multi Commerce LLC at $544.73 per metric tons C&F. while another quantity of 50,000 tons was awarded to the second lowest Ms Transammonia Ag incorporated Switzerland, which agreed to match the lowest bidder price. In order to ensure the timely supply of the commodity, TCP has spent over Rs 5 billion to open two LCs for the import of 100,000 tons of urea and funds for the import of urea have also been generated by corporation from its own resources.
“Two LCs worth $59.09 million were opened on June 23, 2011 – one LC was opened in favour of Ms Multi Commerce LLC while the other for Ms Transammonia,” they said. After issuance of LCs, TCP received schedule of 129,000 ton of urea arrival through four ships. This arrival includes 25,000 tons of urea from Sabic. As per schedule provided by the Sabic first shipment of 25,000 tons will arrive through MV Siam Jade, which will sailed from Al-Jubail port between July4-8, 2011
According to Multi Commerce, its first shipment will arrive in first week of July from China through MV Hai Yu Bayuquan, which will carry 25,000 tons of urea. While another shipment of 29,000 tons of urea will reach through MV Stx Queens Land in second week of July. Both these shipments will arrive at Port Qasim.
Another ship namely Pu Tou Hai from Yuzni Ukraine carrying a quantity of 50,000 tons will reach Gwadar port in the second week of July 2011. Source said the distribution, transportation and bagging of urea will be handled by M/s National Fertiliser Marketing Limited (NFML) to provide urea to farmers in time for Rabi requirement.