Construction of Dedicated Freight Corridor Pipri attracts foreign direct investment

The construction of Dedicated Freight Corridor Pipri project will commence with immediate foreign direct investment of US dollar 20 million which will subsequently reach to US $400 million under joint venture agreement between DP World /National Logistics Corporation (NLC) and Pakistan Railways.

DP World, Dubai-based global logistics company, is partnering with the NLC to complete this project, as stated by Federal Secretary Railways Syed Mazhar Ali Shah in January.

“In partnership with DP World and NLC, the project will be executed on investment mode. A key milestone achieved today! Connectivity through sustainable transportation,” Shah had said.

The project was recently approved during a meeting of Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar.

It may be mentioned here that the term sheet of the project was signed in January 2025 between DP World / NLC and Pakistan Railways.

Pipri Dedicated Freight Corridor on the cards

Once operational, the project will significantly reduce port congestion, accelerate trade facilitation and modernise Pakistan’s logistics infrastructure which will help boost imports, exports and overall economic activity.

The railways secretary had earlier said that the sea freight arriving at Karachi Port was mainly being disposed of inland through road transport due to poor rail connectivity. However, he had said, over the past few years the Ministry of Railways encouraged investment on Built Operate and Transfer (BoT) mode for establishing a new rail link from Karachi Port to Marshalling Yard Pipri which would not only greatly reduce the congestion on roads but will also enable quick unloading of ships as well as speedy evacuation of freight from port area.

“The freight will be transported to Pipri Yard and then transported up-country through rail network,” he had said.

In January 2024, the governments of Dubai and Pakistan signed framework agreements on developing an economic zone at Port Qasim and dredging its navigation channel.

The agreements spanned the creation of a dedicated freight corridor between Karachi Port to the Pipri Marshalling Yard 45km away, capital dredging of the navigation channel to Port Qasim and the potential development of an economic zone at Port Qasim to attract foreign direct investment.

In executing the projects, DP World will act on behalf of the Dubai government, and Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan government.

The NLC and DP World are already engaged in global logistic activities as recently both the companies have shipped over 1,000 containers between Pakistan and Bangladesh since launching the first direct shipping route between the two countries in October.