Freight Corridor: DP World, Govt Finalize Karachi Port to Pipri Project
Freight Corridor: DP World, Govt Finalize Karachi Port to Pipri Project
ISLAMABAD: According to state media reports on Monday, officials from Pakistan and Dubai-based logistics company DP World have reached an agreement on a freight corridor project connecting Karachi Port to the Pipri Marshalling yard in southern Pakistan.
The Karachi Freight Corridor aims to enhance the transportation of freight from Karachi, the country’s largest port city, to different regions within Pakistan. This undertaking includes the development of a dedicated double-track corridor and other associated facilities spanning 50 km from Karachi port to the Pipri Marshalling yard.
“A high-level team from the Dubai logistics firm DP World, led by Sultan Ahmed Bin Sulayem, visited Pakistan under the SIFC [Special Investment Facilitation Council] umbrella to finalize various commercial details concerning the freight corridor project from Karachi Port to Pipri,” reported PTV, the state news channel. “A joint term sheet was signed with DP World and the pertinent parties to facilitate the project’s execution.
“This initiative will minimize the number of freight vehicles in the Karachi metropolitan area through enhanced railway infrastructure to advance freight services in the country more efficiently and cost-effectively.” Last year, Pakistan and the UAE entered into two inter-governmental framework agreements to create a dedicated rail freight corridor and an economic zone near Karachi.
These agreements include plans for investments exceeding $3 billion in railways, economic zones, and infrastructure. DP World will represent Dubai, while the Pakistan Railways and Port Qasim Authority will represent Pakistan. The goal is to ease congestion in Karachi, improve road safety, enhance efficiency, and shorten transport times and costs.
A separate framework agreement addresses the dredging of the navigation channel and the establishment of an economic zone at Port Qasim. Pakistan views signing these investment framework agreements as a move towards becoming a gateway to Asia and enjoying the commercial benefits linked to its strategic position. Last month, Pakistan’s National Logistics Corporation (NLC) and DP World announced they would begin shipping between Karachi and Dubai in January.
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