Islamabad: A Dubai-based global port management company, DP World, has formally partnered with Pakistan’s National Logistics Corporation (NLC) and Pakistan Railways to construct the first phase of a USD 400 million freight corridor linking Karachi Port with the Pipri marshalling yard, according to an official statement issued on Wednesday.
The freight corridor, reported by Arab News, aims to streamline the movement of goods from Pakistan’s commercial hub to other regions. Karachi Port currently handles 54% of the country’s trade, with an annual capacity of 125 million tonnes, and authorities view the corridor as critical to export-led growth.
Funded by DP World, the first phase involves the development of a 50-kilometre double-track railway system supported by allied facilities, connecting the port to the Pipri yard on Karachi’s outskirts.
“The NLC, DP World signed commercial agreement with Pakistan Railways for construction of Phase-1 of the Dedicated Freight Corridor Pipri,” the NLC confirmed. The initiative is expected to increase freight capacity, speed up cargo handling, and ease road congestion in Karachi, Pakistan’s largest and most densely populated city.
Railways Minister Hanif Abbasi said the project would modernise freight transport and strengthen Pakistan Railways’ revenues through freight charges, track access fees, and revenue-sharing mechanisms.
Pakistan and the United Arab Emirates signed two intergovernmental framework agreements in 2023, laying the groundwork for the dedicated rail freight corridor and an economic zone near Karachi, together covering more than USD 3 billion in planned investments.
DP World has already been working with NLC to upgrade Pakistan’s logistics network. In August, the two organisations completed their first commercial cargo delivery from the UAE to Tajikistan via Karachi. The 38-tonne shipment of automotive spare parts was transported from Dubai’s Jebel Ali Port to Karachi and then overland to Dushanbe in just 16 days—significantly faster than alternative routes that typically take 20 to 70 days.
Officials emphasised that the Karachi–Pipri freight corridor will play a pivotal role in positioning Pakistan as a regional trade hub by improving cargo efficiency and boosting competitiveness in global markets.
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