Dubai-Pakistan collaboration: advancing rail, economic zones, and infrastructure

DP World and Pakistan Foster Economic Growth with US$3 Billion Investment in Port Qasim Economic Zone

In a significant move to bolster bilateral ties in the marine and logistics sectors, the governments of Dubai and Pakistan have inked two inter-governmental framework agreements. These agreements, signed at the World Economic Forum in Davos, Switzerland, aim to pave the way for the establishment of a Dedicated Freight Corridor and Economic Zone near Karachi.

Shahid Ashraf Tarar, Pakistan’s Minister of Communication, Railways, and Maritime Affairs, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs, and Free Zone Corporation (PCFC), Dubai, finalized the agreements. The development projects will be overseen by DP World on behalf of the Dubai Government, with state-run Pakistan Railways and Port Qasim Authority representing the Pakistan Government.

The Dedicated Freight Corridor is slated to stretch from Karachi Port on the Arabian Sea, passing through Karachi to the Pipri Marshalling Yard, approximately 45 km away. This strategic corridor aims to enhance efficiency, reduce transport times, and lower overall logistics costs.

Pakistan Railways, headquartered in Lahore, will play a crucial role in this collaboration, as it is the country’s national, state-owned railway company, operating nearly 8,000 km of railway from Torkham in the northwest to Karachi in the south.

Another key component of the collaboration involves a framework agreement with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel. DP World will spearhead the capital dredging project on behalf of the Government of Dubai.

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Additionally, the agreement outlines the development of an economic zone at Port Qasim, with the goal of attracting over US$3 billion in foreign direct investment. DP World, representing the Government of Dubai, will lead the economic zone’s development, aiming to maximize economic activity in Pakistan.

DP World initiated operations in Pakistan in 1997 at the Qasim International Container Terminal (QICT), marking the country’s first container terminal. Since then, DP World has transformed the facility into a prominent gateway for global trade in the region.

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