Dubai to build freight corridor in Pakistan
45km rail line part of deals DP World and Pakistan ministry signed in Davos
The deals signed also involve the development multimodal logistics park, freight terminals, and economic zones, all aimed at enhancing trade, transportation, and economic activities in the region. $3 billion FDI the economic zone at Port Qasim is expected to generate
A45-kilometre freight corridor through Karachi is one of the key objectives of two inter-governmental framework agreements signed by Dubai and Pakistan in Davos yesterday.
Held during the ongoing World Economic Forum, the signings also formalise agreements for multi-modal logistics park, freight terminals, and economic zones.
Logistics leap
DP World in Dubai represents the Dubai government while Pakistan Railways and Port Qasim Authority represent Pakistan government in developing the projects, the Dubai firm announced yesterday.
Shahid Ashraf Tarar, federal minister of Communication, Railways and Maritime Affairs of Pakistan and Sultan Ahmad Bin Sulayem, chairman of Ports, Customs and Free Zone Corporation (PCFC) as well as group chairman and CEO of DP World, signed the agreement.
Deal for navigation channel
The freight corridor will run from Karachi Port on the Arabian Sea to the Pipri Marshalling Yard, approximately 45km away.
“This will improve efficiency and transport times and reduce the overall cost of logistics,” said DP World.
A second framework agreement was signed with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel. DP World will carry out the capital dredging on behalf of Dubai.
Economic zone
The framework agreements will see the development of an economic zone at Port Qasim, which aims to attract more than $3 billion in foreign direct investment.
Sultan Ahmad Bin Sulayem said, these projects would help serve Pakistan’s growing population, forecasted to approach 300 million in the coming decade and integrate it further into the wider region.
Meanwhile, Shahid Ashraf Tarar said, “The signing of Investment Framework Agreements highlights the importance of Pakistan as a gateway to Asia and commercial dividends associated with its strategic location”.