Dubai’s DP World Partners with Pakistan to Build $400 Million Freight Corridor

Dubai-based global port operator DP World has partnered with Pakistan’s National Logistics Corporation (NLC) and Pakistan Railways to construct the first phase of a $400 million dedicated freight corridor. The project, which aims to link Karachi Port with the Pipri marshalling yard, was announced in an official statement. The corridor, spanning approximately 50 kilometers, will feature a double-track railway system and supporting facilities to streamline the movement of goods from Karachi, 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. The government sees this project as a cornerstone of its export-led growth strategy. “The NLC and DP World have signed a commercial agreement with Pakistan Railways for the construction of Phase 1 of the Dedicated Freight Corridor to Pipri,” the NLC said in its statement. The project is expected to significantly enhance the freight capacity of Pakistan Railways, reduce cargo transit times, and alleviate congestion at Karachi Port and on the city’s heavily trafficked roads. Railways Minister Hanif Abbasi hailed the initiative as a transformative step for Pakistan’s logistics sector. “This project will modernize freight transportation, boost revenues through freight charges, track access fees, and revenue-sharing mechanisms, and strengthen the overall economy,” he said. The freight corridor is part of a broader effort by Islamabad to capture a larger share of regional trade by investing in port and rail infrastructure. Last year, Pakistan and the UAE signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and an economic zone near Karachi, with planned investments exceeding $3 billion. DP World, which has been actively working to enhance Pakistan’s logistics capabilities, recently completed its first commercial cargo delivery in partnership with NLC. In August, the two organizations transported 38 tonnes of automotive spare parts from Dubai’s Jebel Ali Port to Tajikistan’s capital, Dushanbe, via Karachi.