Port Qasim begins $2b makeover

Dredging, railway link for Reko Diq minerals among mega projects

KARACHI:

Work is underway on development projects worth billions of dollars to transform Port Qasim, Pakistan's second-largest commercial port, into a modern, world-class facility. New investment of $2 billion is expected at the port, with substantial funding set to flow into its infrastructure and industrial sectors.

A new dredging operation worth $250 million has entered its first phase, while work has also begun on constructing a railway track to link transportation of Reko Diq mineral reserves to Port Qasim. The Reko Diq Mining Company will directly invest $150 million at the port. Under the ML-1 project, a railway line is being laid from Pipri to Port Qasim.

The first phase of the new dredging operation, costing $250 million, has commenced, enabling vessels with a depth of up to 18 metres to berth at the port, said Rear Admiral Moazzam Ilyas, Chairman Port Qasim.

Following completion of the multi-logistics park at Pipri, the burden of freight traffic on Karachi's four major arteries – Shahrah-e-Faisal, Shahrah-e-Bhutto, Malir Expressway, and the Northern Bypass – will be reduced, said Altaf Qadir Bajwa, Director NLC.

Several mega projects in the shipping and logistics sectors have been launched at Port Qasim, with major developments expected to be completed this year and over the next two years. These projects aim to modernise the port's systems and align Pakistan's maritime trade with global standards. Approximately $2 billion in new investment from the UAE, Türkiye, Qatar and China will be utilised under a 30-year master plan to develop the port's infrastructure and industrial sectors.

Sea, rail and road transport are being integrated into a unified network, enabling faster, more efficient and cost-effective cargo movement nationwide. Improved connectivity between railways and the port will significantly reduce freight traffic pressure on Karachi's roads. There are also plans to link Gwadar Port, Karachi Port and Port Qasim under an integrated system in the future.

The Reko Diq Mining Company will invest $150 million at the port, while construction of a railway track linking mineral transportation from Reko Diq to Port Qasim has already begun. Under ML-1, a new railway line is being laid from Pipri to Port Qasim, which will also be used in future for exporting Thar coal.

According to Chairman Port Qasim Authority, Rear Admiral (retd) Moazzam Ilyas, the first phase of the $250 million dredging project has begun. Upon completion, modern large vessels with an 18-metre draft will be able to berth easily, significantly enhancing the port's cargo handling capacity.

Speaking to Express News, the chairman said, Port Qasim began on a very small scale with only one berth in 1980 but has now expanded to 18 berths. The port has evolved into an energy hub, handling LNG, LPG and petroleum products, supporting the national economy. Construction of additional berths and terminals is underway on a priority basis.

The government has granted Port Qasim the status of a Special Economic Zone to promote industrial development. The plan is to establish industries where raw materials can be imported and converted into finished products for export.

Currently, vessels with a draft of 13.5 metres can berth at the port. The channel depth is to be increased to 15 metres by 2028 and eventually to 18 metres. Arrangements are being made to ensure the secure transportation of Reko Diq minerals from the mining site to the export terminal at Port Qasim. A feeder line will connect the mining site, with all cargo transported via railway wagons to Port Qasim. Exports are expected to be routed through Port Qasim upon completion by 2028.

Speaking to the media at the under-construction railway track site in Pipri, Director National Logistics Corporation (Sindh), Engineer Altaf Qadir Bajwa, said the project spans approximately 13.5 kilometres. A railway freight container and multi-logistics park is being developed in collaboration with DP World and Dubai Port International, with a 60% stake held by Dubai World and 40% by NLC. The project is valued at Rs2.46 billion.

A 1.5-kilometre railway track will connect Port Qasim and Karachi Port. The facility, spread over 13,700 square kilometres, will be capable of handling 260 containers and trucks at a time. Its major benefit will be reducing the heavy traffic load on Karachi's key roads. The logistics park will allow upcountry trailers to park at the site, while goods arriving by train will be unloaded and dispatched onward via trailers. It is estimated that the daily burden of 250 to 400 containers on Karachi's roads will be reduced. The 1.5-kilometre railway track is expected to be completed by October this year.