Dubai-based DP World commits $400 million to Pakistan's railroad cargo transportation project

DP World Completes First Commercial Cargo Delivery Via Karachi Freight Corridor

Pakistan's economy and export expansion efforts have received a significant boost with the successful completion of the first commercial cargo delivery via the Karachi Freight Corridor (KFC). This infrastructure project, aimed at improving the movement of freight from Karachi, Pakistan's largest city and commercial hub, is a key component of Islamabad's strategy to capture a larger share of regional trade flows.

The journey, from Jebel Ali port in Dubai to Karachi and then overland to Dushanbe, was completed in an impressive 16 days. This delivery, a collaboration between Dubai-based DP World and the National Logistics Corporation (NLC) of Pakistan, marked a significant milestone in the partnership's efforts to modernize Pakistan's logistics infrastructure.

The cargo consisted of 38 tons of automotive spare parts, and DP World claimed the fastest transit time currently available between Dubai and Dushanbe for this delivery. The $400 million investment in the KFC was made by DP World in partnership with the NLC and Pakistan Railways through a joint venture agreement.

Last year, Pakistan and the UAE signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and economic zone near Karachi. The construction of the dedicated freight corridor Pipri project will commence with immediate foreign direct investment of $20 million, which will subsequently reach $400 million.

The KFC project involves the construction of a dedicated double-track corridor and related facilities that will run 50 km from Karachi port to the Pipri marshalling yard. Once operational, it is expected to significantly reduce port congestion, accelerate trade facilitation, and modernize Pakistan's logistics infrastructure.

The agreements cover plans for over $3 billion investments in railways, economic zones, and infrastructure, with DP World acting on behalf of Dubai, while the Pakistan Railways and Port Qasim Authority act on behalf of Pakistan. The move is intended to help boost imports, exports, and overall economic activity in Pakistan, as the country struggles to revive its economy and expand exports.

Competing routes typically take between 20 and 70 days, making the KFC a promising solution for faster and more efficient regional trade. The collaboration between DP World and NLC is part of their ongoing efforts to improve Pakistan's logistics infrastructure, a crucial step towards achieving Pakistan's economic goals.

Dubai-based DP World commits $400 million to Pakistan's railroad cargo transportation project