ISLAMABAD: Pakistani officials and Dubai-based logistics giant DP World have finalized terms for a freight corridor project from Karachi Port to the Pipri Marshalling yard in southern Pakistan, state media reported on Monday.
The Karachi Freight Corridor is an infrastructure project in Pakistan aimed at improving the movement of freight from the port city of Karachi, Pakistan’s largest, to various parts of the country. The project involves the construction of a dedicated double-track corridor and other related facilities that will run 50 km from Karachi port to the Pipri Marshalling yard.
“A high-level delegation of Dubai-based logistics firm DP World led by Sultan Ahmed Bin Sulayem visited Pakistan through the SIFC [Special Investment Facilitation Council] platform to finalize various commercial aspects of the freight corridor project from Karachi Port to Pipri,” state news channel PTV said.
“A mutually agreed-upon term sheet was signed between DP World and the relevant parties for the project’s implementation.
“This project will reduce the movement of freight vehicles in the Karachi metropolis through improved railway Infrastructure, aimed at advancing freight services within the country in a highly efficient and cost-effective manner.”
Pakistan and the UAE last year signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and economic zone near Karachi.
The agreements cover plans for over $3 billion investments in railways, economic zones and infrastructure. DP World will act on behalf of Dubai, while the Pakistan Railways and Port Qasim Authority will act on behalf of Pakistan.
The aim is to decongest Karachi, improve road safety, increase efficiency and reduce transport times and costs.
A second framework agreement covers dredging of the navigation channel and the development of an economic zone at Port Qasim.
Pakistan sees the signing of the investment framework agreements as a step toward the South Asian nation becoming a gateway to Asia and reaping the commercial dividends associated with its strategic location.
Last month, Pakistan’s National Logistics Corporation (NLC) and DP World said they would begin a shipping service between Karachi and Dubai from January.
