PACRA maintains the entity ratings of Pakistan International Bulk Terminal.

The Pakistan International Bulk Terminal Limited (“PIBT” or “The Company”) primary business is terminal management for the handling of the import of coal and clinker/cement exports. With a fully automated infrastructure, the Company's annual capacity hovers around 12 million MT for inbound coal handling and 4 million MT of outbound clinker and cement handling. On November 19, 2024, a fire at the terminal caused significant infrastructure damage and temporarily disrupted cargo handling operations. Repairs were completed by December 16, 2024, restoring normal operations. The incident was reported to insurers, and the claim assessment is currently underway. PIBT has secured a distinguished position in its operating segment due to its strategic importance in the Power and Cement sector. During 3QFY25, PIBT handled 3.5mln tons of coal cargo (FY24: 6.4mln tons), depicting a decline of 45% in volume handling as compared to SPLY. Following the imposition of import restrictions in FY23, PIBTL’s key customers, particularly cement manufacturers, have largely shifted to using local or Afghan coal. This shift has significantly reduced demand for imported coal. Additionally, power sector clients have also reduced the imported coal due to the government’s strategic move towards more cost-effective alternatives, especially after the commissioning of Thar-based local coal power projects. The clinker export market remains weak due to low margins. Furthermore, clinker exports can be routed through Karachi Port Trust (KPT), as PIBTL holds exclusive rights only for imported coal, not for other cargo types. This translated into PIBT topline, which clocked to PKR 7.4bln, showing a decline of 36% as compared to PKR 11.6bln. There is no fixed tariff bracket linked to volume tiers; instead, the pricing structure remains variable and is negotiated with client depending on contractual terms and service requirements. The average tariff realized over the year was recorded at $7.5/MT. The bottom line of PIBT has turned red and posted a net loss of PKR 263mln [3QFY24: Profit of PKR 1.3bln]. The ratings underline PIBTL’s high sensitivity to volume fluctuations, given its fixed debt obligations and cost structure, despite earning revenue in US dollars, which provides a natural hedge against foreign debt exposure. On the cost side, PIBTL is required to pay approximately. USD 3 per ton of cargo handled to the Port Qasim Authority. This payment is variable in nature, meaning that if no cargo is handled, PIBTL has no liability to make this payment. The Ratings draw comfort from sponsors' extensive association with the related business "Marine Group of Companies". To ensure overall profitability and to comfortably meet all financial obligations, including debt servicing, royalty payments, and other charges, the Company must consistently maintain a volume range of 6.0 to 6.5 million metric tons, which is considered a breakeven volume, approx. 60% of installed capacity. The capital structure remains adequate despite substantial long-term borrowings; however, maintaining sufficient volumes to ensure steady cash flow and support timely debt servicing remain critical for the ratings.
The Ratings are dependent upon the Company’s profitability and cash flows which are closely tied to maintaining high cargo volumes, managing operational efficiency, and fulfilling its financial commitments. In light of the weakened demand environment, strategic diversification into alternative business ventures is expected to provide additional support and stability to the ratings.

About the Entity
PIBT was incorporated in November 2010, and commenced its commercial operations on July 3, 2017. Ownership of the company vests with Premier Mercantile Services (Pvt.) Limited (PMS) (~43%), which is the flagship Company of the “Marine Group of Companies” is acting as an Investment arm. Mr. Haleem Ahmed Siddiqui is the Chairman of the Board. He, along with his family, collectively own PMS. Mr. Haleem Siddqui has over ~50 years of experience in marine-related services. He was also the founding Chairman of the Pakistan International Container Terminal (PICT). Mr. Sharique Azim Siddiqui is the CEO of PIBT. He is assisted by a team of qualified professionals.