ISLAMABAD - National Logistics Cell (NLC) has signed a memorandum of understanding (MoU) with Daimler AG for local production of world renowned Mercedes-Benz trucks by NLC in Pakistan.

The MoU was signed on behalf of NLC by Major General Mushtaq Faisal, DG NLC, and Zia Ahmed, CEO Pak NLC Motors, and on behalf of Mercedes-Benz Special Trucks by Klaus Fischinger, head of Executive Committee, and Dr Ralf Forcher, head of sales at Woerth, Germany. Also present at the signing were Naseem Shaikh, director and general manager Shahnawaz Ltd, and Ahmed Naeem of Shahnawaz Ltd, the authorized distributor of Daimler AG in Pakistan, who have played a key role in bringing together the two partners for this project of national importance.

Local assembly of Mercedes-Benz trucks by NLC will mark a major shift in the domestic logistics and transportation industry towards European manufacturers which offer technologically advanced products that combine superior performance, environment friendliness, reliability and road safety.

Talking on the occasion, Major General Faisal termed the MoU as an historic moment for Pakistan’s commercial vehicle industry. He said that local assembly of Mercedes-Benz trucks would prove a strategic opportunity to leverage the modernisation of Pakistan’s logistics industry which would benefit tremendously from having a state-of-the-art assembly plant in Pakistan being setup by NLC. Because of the incentives given in Auto Development Policy 2016-21, local assembled Mercedes-Benz trucks would be offered on competitive prices.

DG NLC said that local assembly of Mercedes-Benz trucks will ensure a healthy competition in the trucking industry of the country and meet the logistics requirements of CPEC. He added that it will bring qualitative change in local vendor industry and will provide opportunities for new jobs.

Dr Ralf Forcher, member of Executive Committee and head of sales and marketing, Mercedes-Benz Special Trucks, said: "Pakistan’s infrastructure and construction sectors have registered significant growth in recent years having a direct effect on the logistics industry as it gives rise to an increased demand for commercial vehicles. By commencing local assembly operations of Mercedes-Benz trucks in Pakistan, NLC will be able to cater for this demand more efficiently and respond to market trends quickly”.

It is pertinent to mention here that strong growth in Pakistan’s GDP has contributed towards a significant boost in rising demand for commercial vehicles. In addition, the CPEC project is also playing an important role in raising demand in this sector. Modern transportation networks built under CPEC will link seaports in Gwadar and Karachi with northern Pakistan, as well as points further north in China and Central Asia.