National Logistics Corporation Explained

National Logistics Corporation
Type:Public
People:Maj Gen Farrukh Shahzad Rao (director-general)
Location City:Rawalpindi, Punjab
Location Country:Pakistan
Area Served:Pakistan
Afghanistan (formerly)
Industry:Logistics
Freight System
Services:Logistics, freight forwarding, dry ports, border terminals, engineering, construction, tolling, express freight trains, polymers, and sea freight
Num Employees:8,000

The National Logistics Corporation (Urdu: نیشنل لاجسٹکس کارپوریشن), formerly known as the National Logistics Cell, is a Pakistani state-owned logistics company based in Rawalpindi, Pakistan.[1] [2] It is considered as the logistics arm of Pakistan Army and operates under its indirect control.[3] [4] [5]

As of 2011, NLC was responsible for transporting approximately 50 percent of Pakistan's domestic crude oil, amounting to about 76,000 barrels per day.[3]

History

National Logistics Cell was founded following the 1977–1978 wheat crisis in Pakistan, due to insufficient railway capabilities to transport wheat from the Karachi seaport inland.[6] Initially, the Pakistan Army was asked to address the crisis, which ultimately led to the formation of the NLC as an independent entity.[6] Later, it was given the role to supply military equipment to Mujahideen fighting the Soviet Union by Muhammad Zia-ul-Haq government.[7] During this period, NLC also acquired the freight business of Pakistan Railways.[8] [9] During the early stages of the Afghan refugee crisis, the NLC used the Pakistan Army's transport capabilities to provide logistical support to approximately 3 million Afghan refugees between 1982 and 1989.[6]

In the fiscal year 1994-1995, the NLC was allocated approximately Rs 245 million by the Government of Pakistan to invest in stock markets and bonds, aimed at funding vehicle replacements and other infrastructural developments.[6] The government was the sole financer of the NLC's infrastructure development during this period.[6]

By 2004, the NLC had evolved into a major logistics organization, boasting a carriage capacity of 50,000 tons of dry cargo and 9 million liters of fluid cargo, with a fleet of 2,000 vehicles.[6] Its assets were valued at around Rs 5 billion.[6] Since its establishment, NLC had also diversified into the construction industry, undertaking various military and civilian infrastructure projects in Pakistan, including roads and bridges.[3]

In July 2011, the Government of Pakistan allowed the NLC to participate in the bidding process for the acquisition of a state-owned construction company, which was a change from its original charter.[3] The decision was made to refocus the NLC and align its activities with its statutory framework.[3] The NLC sought to acquire international assets owned by the National Power Construction Company.[3]

As of 2011, NLC was responsible for transporting approximately 50 percent of Pakistan's imported crude oil, amounting to about 76,000 barrels per day.[3]

In 2014, NLC was awarded the contract to construct the Rawalpindi section of Rawalpindi-Islamabad Metrobus at 1.04 per cent higher than the estimated cost.[10]

Controversies

In 2010, a corruption scandal was unearthed that involved two Pakistan Army generals, (Maj Gen Khalid Zaheer Akhtar and Lt Gen Muhammad Afzal), and caused a loss of to the company through speculative investments between 2004 and 2008.[11] [12] In 2015, both of them were convicted by the military court of Pakistan.[13]

Notes and References

  1. Web site: Senate of Pakistan . 2023-05-29 . www.senate.gov.pk.
  2. Web site: Ali . Hussain . Senate passes National Logistics Corporation Bill, 2023 . Business Recorder . 5 August 2023 . 15 September 2023.
  3. Web site: Army's expanding footprint: NLC allowed to bid for state-owned construction firm. July 22, 2011. Shahbaz . Rana. The Express Tribune.
  4. Web site: NLC scandal. From the. Newspaper. July 2, 2012. DAWN.COM.
  5. Web site: Rs35 billion budget approved for National Logistics Cell. August 13, 2012. The Express Tribune.
  6. Book: The Military as an Economic Actor: Soldiers in Business . Brömmelhörster . Jörn . . 2004 . 9780333999288 . 136 . Paes . Wolf-Christian . For instance, the National Logistics Cell was established in the wake of the wheat shortage in 1977–8. The lack of adequate railway facilities to bring wheat from the Karachi seaport into the country brought the Army into the picture. Initially, the Army was called upon to help solve the wheat crisis, which finally led it to establish an independent organization, the NLC. The Army’s transportation capacity was also solicited during the early days of the Afghanistan crisis. The NLC provided logistical support to 3 million Afghan refugees from 1982–9. In 1994–5, the NLC received about Rs 245 million from the government to invest in stocks and bonds. This was primarily to provide capital investment for the replacement of vehicles and other infrastructure. The government was the sole investor in developing the NLC's infrastructure. What started as a rescue operation was transformed into an organization that by 2004, had a carriage capacity of 50,000 tons of dry cargo and 9 million liters of fluid cargo and a fleet of 2,000 vehicles and its assets were estimated at about Rs 5 billion. The organization also undertaking other activities, including the construction of roads and bridges, spraying of pesticides, locust control and logistical crisis management..
  7. News: Pakistanis Question Perks of Power. Washington Post.
  8. Web site: Railways and the NLC. October 16, 2014. The Express Tribune.
  9. Web site: After Decades of Neglect, Pakistan Rusts in Its Tracks. Declan. Walsh. May 19, 2013. NYTimes.com.
  10. Web site: PM to inaugurate Metro Bus Project tomorrow. Aamir. Yasin. March 22, 2014. DAWN.COM.
  11. Web site: NLC scandal. the. Newspaper. July 2, 2012. DAWN.COM. http://dawn.com/2012/07/02/nlc-scandal/. October 29, 2012.
  12. Web site: Rs4.3b NLC scam: Military probe finds two ex-generals guilty. August 5, 2015. The Express Tribune.
  13. Web site: Army sentences two former generals in NLC corruption case. August 5, 2015. DAWN.COM.