Traffic mess delays consignments: Karachi Port operating much below its capacity

ISLAMABAD: Karachi Port is operating at less than 50 percent of its capacity as the majority of consignments are delayed due to persistent traffic congestion in the city.

Acting Chairman of the Karachi Port Trust (KPT) Rear Admiral Atiq-ur-Rehman stated this on Thursday in a meeting of the National Assembly’s Standing Committee on Economic Affairs Division with MNA Dr Mirza Ikhtiar Baig in the chair. The KPT acting head briefed the National Assembly’s body on the Lyari Elevated Freight Corridor (LEFC) project. He said that due to persistent traffic congestion, the KPT, on average, is handling cargo of just 50 million tonnes against the port’s capacity of 125 million tonnes.

Dr. Ikhtiar Baig said that on numerous occasions, our export consignments could not reach the port on time due to traffic jams, and the exports missed the shipments, which incurred heavy losses to them because the buyers imposed penalties on them, and sometimes their orders are cancelled.

MNA Muhammad Jawed Hanif Khan said that the delay in the execution of this project is causing problems for the people of Karachi. Trawlers and dumpers use the route through the main city areas to reach Karachi port.

He said the NHA proposal to connect the Northern Bypass with the port is not a feasible option because its distance to the Super Highway is 52 km long, whereas the route from the main city area to the Super Highway is just 23 kms long, and because of this, goods transporters would never use the Northern Bypass route.

The committee was briefed on the current status of a study conducted by KPT regarding the LEFC, a vital project intended to resolve the severe traffic congestion constraining the KPT by providing a direct 24/7 highway link. While the project is essential to unlock the port’s full capacity and boost national trade, the committee was informed that a recent study has declared the original 23.5 kms plan with a dramatic cost escalation from an initial USD 288 million to a staggering USD 1.085 billion cost proposed by the Korean Exim Bank.

The committee emphasised that the NHA’s cost estimation is more reasonable and its proposal should be seriously considered. Despite the project’s cost ranging from Rs. 68 to 100 billion, members challenged the perception of its non-viability.

They argued that, given the massive economic impact of a fully functional KPT enabled by the LEFC, the project’s strategic value justifies its funding through either the Public Sector Development Programme (PSDP) or a Public-Private Partnership (PPP).

The committee members emphasised the need for the KPT and NHA to hold joint discussions to develop a practical and sustainable solution to the traffic management issues and the LEFC project. Furthermore, the Committee highlighted the importance of including the LEFC project in the PSDP and added that the committee will make efforts to take up the matter with the Minister for Communications to ensure the project’s consideration and approval under the PSDP.

The National Assembly’s panel was presented with a stark contrast in financing options: a highly concessional loan from the Korean Exim Bank at 0.1 percent for fifty years, alongside a proposal from the Islamic Development Bank at 6 percent for twenty years for the Hyderabad-Sukkur Motorway. In response, the committee unanimously condemned the 6 pc offer as financially reckless, demanding to know how such a high-cost option could be seriously considered when a better alternative was available.

The committee also expressed deep concerns that unregulated construction along riverbanks had significantly worsened the destruction caused by the recent floods. The committee emphasised the need for effective policy measures and practical actions to prevent such construction in the future.

The meeting was attended by MNAs Ammar Ahmad Khan Leghari, Saba Sadiq, Pir Syed Fazal Ali Shah Jillani, Pir Ameer Ali Shah Jillani, Muhammad Khan Daha, Huma Akhtar Chughtai, Akhtar Bibi, Syeda Shehla Raza, Muhammad Jawed Hanif Khan, Neelam, and Sadiq Iftikhar.

The meeting was also attended by Secretary EAD and officials of the Ministry of Economic Affairs and other officials concerned.

Copyright Business Recorder, 2025