Karachi Freight Corridor will Change the Cargo Landscape in Pakistan. This is reported by the railway transport news portal Railway Supply.

Karachi Freight Corridor: DP World Invests $400 Million
Photo: Karachi Port Trust.official

Dubai-based DP World announced that it will invest $400 million in the Karachi Freight Corridor project, aimed at enhancing freight movement from Karachi to inland destinations. The project offers improved access, less wear and tear on the roads and modernized logistical infrastructure throughout the country.

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The scheme, alongside Pakistan Railways and state-owned National Logistics Corporation (NLC), will come up with a 50-kilometer dedicated double-track between Karachi Port and the Pipri marshalling yard. The company will make an initial investment of $20 million for the joint venture agreement, and will be the first recipient to build from the ground up.

Strategic Objectives & Regional Trade Benefits

The KFC is expected to expedite trade facilitation and cater to Pakistan’s increasing import and export needs. Officials emphasised that the corridor will ensure fast movement of freight, detour port bottlenecks and enable faster movement of logistics companies and exporters.

The two countries also signed an agreement for Pakistan and UAE for over 3 billion dollars worth of investments in rail, infrastructure and economic zones. On the Dubai side DP World will be involved and Pakistan Railways and the Port Qasim Authority will take care of the domestic side.

Boosting Economy and Sustainability

The corridor will increase trade volumes, facilitate supply chains, and enhance Pakistan’s position in regional trade, says NLC. The undertaking fits in with Islamabad’s objective of upgrading its transport infrastructure and using sustainable and energy-efficient logistics solutions.

Earlier this week, DP World and NLC concluded their first commercial cargo from Dubai’s Jebel Ali Port to Tajikistan, through Karachi. The 38-ton cargo of automobile parts arrived in Dushanbe in 16 days, faster than rival routes that could take 20 to 70 days.

Source: www.arabnews.com

What is the Karachi Freight Corridor?

The Karachi Freight Corridor is a dedicated freight railway system to move freight from Karachi Port to Pipri yard to decongest and modernize the logistics infrastructure of Pakistan.

Pakistan rail freight network: How much DP World is investing?

DP World will be investing $400 million in the corridor including an initial $20 million in construction and further contributions as the corridor progresses.

How it will benefit Pakistan trade?

It will also contribute to increased freight volumes and help reduce transit time for cargo and trade in the region, strengthening Pakistan’s economy and increasing its capacity to compete in international markets.

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