Pakistan Railways, in partnership with Dubai-based DP World and the National Logistics Corporation (NLC), is set to begin construction of the long-awaited Dedicated Freight Corridor linking Karachi Port with the Pipri Marshalling Yard.
The project will start with an immediate foreign direct investment of $20 million, rising to $400 million under a joint venture arrangement, according to officials. It was recently cleared by the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar.
Federal Secretary Railways Syed Mazhar Ali Shah hailed the decision as a major breakthrough. “In partnership with DP World and NLC, the project will be executed on investment mode. A key milestone achieved today! Connectivity through sustainable transportation,” he said.
The term sheet for the project had already been signed in January 2025 between Pakistan Railways, DP World and NLC. Once operational, the freight corridor is expected to significantly reduce congestion at Karachi Port, accelerate trade facilitation and strengthen Pakistan’s logistics infrastructure—enhancing imports, exports and overall economic activity.
Shah earlier noted that much of the sea freight arriving at Karachi Port is currently transported inland by road due to weak rail connectivity. He explained that the new rail link, developed on a Build-Operate-Transfer (BoT) model, will connect Karachi Port with Pipri Yard, 45 kilometres away, enabling faster unloading of ships and quicker movement of goods up-country through the national rail network.
The freight corridor forms part of broader cooperation between Pakistan and Dubai. In January 2024, the two governments signed framework agreements covering three projects: the Karachi–Pipri corridor, capital dredging of Port Qasim’s navigation channel, and the development of an economic zone at Port Qasim to attract foreign direct investment. Under these arrangements, DP World is acting on behalf of the Dubai government, while Pakistan Railways and the Port Qasim Authority are representing Pakistan.
DP World and NLC are already active partners in logistics. In October last year, the two launched the first direct shipping route between Pakistan and Bangladesh, moving more than 1,000 containers between the two countries.
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