ISLAMABAD: Pakistan’s maritime affairs minister and a senior official of Hutchison Ports, a subsidiary of Hong Kong conglomerate CK Hutchison Holdings Limited, recently discussed the “swift execution” of a proposed $1 billion investment to modernize Pakistan’s ports, a statement from the maritime affairs ministry said.
Hutchison Ports delegates met Pakistan’s Finance Minister Muhammad Aurangzeb earlier this month to present their $1 billion investment plan. The plan is aimed at upgrading Hutchison Ports’ existing terminals in Pakistan to enhance operational efficiency, logistics connectivity, and automation.
Hutchison Ports has been operating two terminals, HPKICT and HPSAPT, in Pakistan and has contributed more than Rs225 billion ($804 million) in government revenues and provided employment to a workforce of 5,000 individuals, according to the port operator.
“Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry met with Andy Tsoi, Managing Director of Hutchison Port Holdings Limited, to discuss the swift execution of the previously proposed $1 billion investment aimed at upgrading Pakistan’s port infrastructure,” Pakistan’s Ministry of Maritime Affairs said on Wednesday.
The statement said that the two discussed addressing challenges, expediting approvals and ensuring “smooth implementation” of port modernization plans to enhance Pakistan’s trade and maritime capabilities.
Both sides also discussed regulatory clearances, infrastructure upgrades and supply chain improvements, the ministry said, adding that they agreed to remove bottlenecks that could slow down the project.
“Andy Tsoi reiterated Hutchison Ports’ commitment to Pakistan and emphasized the importance of efficient execution to maximize economic benefits,” the ministry said.
Hutchison Ports’ investment plan covers modernization of the Karachi International Container Terminal (KICT) and South Asia Pakistan Terminals Limited (SAPT), including provision of advanced port equipment, electrification of operations and improved road connectivity.
The ministry said that to facilitate seamless trade, both parties agreed to enhance coordination among stakeholders and establish a clear roadmap for “timely execution.”
“Federal Minister Muhammad Junaid Anwar Chaudhry assured Hutchison Ports of the government’s full cooperation in resolving operational challenges, streamlining approvals, and ensuring a favorable investment environment,” the statement added.
Pakistan has aggressively tried to boost foreign trade in recent months and sought international partnerships to expand its maritime activities.
On Jan. 22, South Korean shipping company HMM launched the India North Europe Express (INX) weekly shipping service in Pakistan, providing the country direct access to Europe.
Dubai-based logistics giant DP World, in collaboration with Pakistan’s National Logistics Corporation, launched in January a feeder service to transport shipping containers from Dubai to Karachi, Pakistani state media reported.
Pakistani officials and DP World have also finalized terms for a freight corridor project from Karachi Port to the Pipri Marshalling yard in southern Pakistan.
These efforts are in line with Pakistan’s efforts to navigate a tricky path to economic recovery after it nearly defaulted on its debts in 2023 before an International Monetary Fund (IMF) bailout program came to its rescue.
