By Staff Reporter
KARACHI: DP World Ltd., the Dubai-based global port operator, has signed a commercial agreement with Pakistan’s National Logistics Corporation and Pakistan Railways to develop the first phase of a $400 million dedicated freight corridor linking Karachi Port to the Pipri marshalling yard, a key rail hub on the city’s outskirts, a statement said on Wednesday.
The project marks a significant step in Pakistan’s push to modernize its trade infrastructure and capture a larger share of regional commerce.
The 50-kilometer corridor, funded by DP World, will feature a double-track railway system and supporting facilities designed to streamline cargo movement from Karachi Port, which handles 54% of Pakistan’s trade with an annual capacity of 125 million tons. The initiative aims to alleviate chronic congestion at the port and on the surrounding roads of Pakistan’s largest and most densely populated city, while boosting the freight capacity of Pakistan Railways.
“The NLC, DP World signed commercial agreement with Pakistan Railways for construction of Phase-1 of the Dedicated Freight Corridor Pipri,” the National Logistics Corporation said in its statement. The project is expected to enhance the efficiency of cargo transport and support Pakistan’s export-led growth strategy, a priority for the government as it seeks to bolster economic competitiveness.
Railways Minister Hanif Abbasi, speaking at the signing ceremony, emphasised the transformative potential of the corridor. “The project would modernize freight transportation and strengthen revenues through freight charges, track access fees, and revenue-sharing mechanisms,” he said. The initiative aligns with Islamabad’s broader ambition to upgrade freight and port infrastructure to position Pakistan as a regional trade hub.
The partnership builds on existing collaboration between DP World and Pakistan’s logistics sector. In August, DP World and the NLC completed their first commercial cargo delivery from the UAE to Tajikistan via Karachi, a milestone in establishing efficient trade routes through Pakistan. The shipment, consisting of 38 tons of automotive spare parts, was transported from Jebel Ali Port in Dubai to Karachi and then overland to Dushanbe in just 16 days — the fastest transit time currently available for this route, according to DP World. Competing routes typically take between 20 and 70 days.
The freight corridor project is part of a broader set of agreements between Pakistan and the UAE, which last year signed two inter-governmental framework deals worth more than $3 billion. These agreements aim to establish a dedicated rail freight corridor and an economic zone near Karachi, signaling deepening economic ties between the two nations.
For Pakistan, the corridor represents a critical investment in its logistics infrastructure, which has long been a bottleneck for trade. Karachi Port’s strategic location makes it a vital gateway for goods moving to and from Central Asia, but inefficiencies in transport links have hindered its potential. The new corridor is expected to reduce transit times, lower logistics costs, and enhance Pakistan’s appeal as a trade conduit in the region.
DP World’s involvement underscores its growing footprint in Pakistan’s logistics sector. The company, one of the world’s largest port operators, has been expanding its operations across Asia and the Middle East, leveraging its expertise to develop integrated supply chain solutions. The Karachi-Pipri corridor is poised to become a cornerstone of these efforts, facilitating faster and more reliable trade flows.
The project’s first phase is expected to lay the groundwork for further expansions, though specific timelines for completion were not disclosed in the statement.
Copyright © 2021 Independent Pakistan | All rights reserved
