DP World to invest $400 million to boost cargo rail connectivity in Pakistan

DP World has announced a $400 million investment aimed at enhancing rail connectivity for cargo between Karachi and Port Qasim Authority (PQA) in collaboration with the National Logistics Cell (NLC).

This initiative is part of a broader effort to improve supply chain infrastructure, including border terminals, marine transport, and connectivity.

The investment also seeks to strengthen supply chain links between Jebel Ali and PQA and to kickstart near-shoring ventures. Additionally, joint ventures in logistics, transport, regional transport, and new logistics parks between NLC and DP World were announced.

Highlighting these developments, DP World's Chairman, Sultan Ahmed Bin Sulayem, revealed the launch of PAK MART in Dubai, a joint venture with NLC to provide Pakistani businesses and logistics companies with sales outlets and warehousing facilities, similar to Dragon Mart.

Sulayem praised Gen. Rao Farrukh, DG NLC, for his diligent efforts in bringing these initiatives to fruition.

It may be mentioned here, a high-level delegation from DP World, led by Sulayem, visited Pakistan through the SIFC platform to finalize commercial aspects of the Dedicated Freight Corridor project, connecting Karachi Port to Pipri.

The consultation on the Multi-Modal Logistics Park in Pipri, involving stakeholders from DP World, Pakistan Railways, and NLC, was successfully conducted under SIFC's auspices, according to a press release.

During a ceremony at SIFC, a mutually agreed-upon term sheet for the project's implementation was signed. Syed Mazhar Ali Shah, Secretary of Pakistan Railways, represented Pakistan, accompanied by DG SIFC, DG NLC, and other senior officials from relevant ministries and departments.

The project is expected to reduce freight vehicle traffic in Karachi through improved rail infrastructure, enhancing freight services within Pakistan in a highly efficient and cost-effective manner.