ISLAMABAD: Pakistan has formally launched construction of the Pipri Dedicated Freight Corridor and Multimodal Logistics Park, a major CPEC-aligned infrastructure project aimed at improving freight connectivity between Karachi’s ports, domestic markets and onward routes to China and Central Asia, officials said on Thursday.
The construction follows a groundbreaking ceremony at the project site attended by Federal Minister for Railways Hanif Abbasi, DP World Group Chairman and CEO Sultan Ahmed bin Sulayem, and senior representatives of the National Logistics Corporation, Pakistan Railways and port and terminal operators, according to a report by Gwadar Pro.
The project is being jointly developed by DP World, Pakistan Railways and NLC, with NLC serving as the executing agency. It involves an estimated 400 million dollars in foreign direct investment and is expected to generate annual savings of up to Rs100 billion by reducing logistics costs and transit times.
Under the first phase, a 52-kilometre railway corridor linking Karachi Port with the Marshalling Yard at Pipri will be rehabilitated, alongside the development of a modern multimodal logistics park. Phase one is targeted for completion within four months.
Once operational, import containers arriving at Karachi’s ports will be transported directly by rail to Pipri and then dispatched onward by rail and road to destinations across Pakistan, as well as to China, Central Asia and other regional markets. Export cargo will follow the same route in reverse, improving turnaround times and overall supply chain efficiency.
Officials said the project is intended to address chronic congestion at Karachi Port by shifting freight movement from road to rail. Limited rail-based freight capacity has long contributed to slow cargo clearance, road congestion, higher emissions and increased wear on urban road infrastructure.
Designed as a long-term solution, the Pipri corridor and integrated logistics park will combine rail, road and port operations into a single hub, offering warehousing, stuffing and de-stuffing, cargo consolidation and other value-added services.
Aligned with Pakistan Railways’ ML-1 project under the CPEC framework, the corridor is expected to decongest Karachi’s ports, divert heavy container traffic away from city roads, lower carbon emissions and extend the lifespan of key transport infrastructure.
Speaking at the ceremony, Sultan Ahmed bin Sulayem said the integration of rail, road and port infrastructure through the Pipri project would improve trade flow efficiency, support sustainable logistics and strengthen Pakistan’s role as a regional trade gateway.
The partnership between DP World, NLC and Pakistan Railways was formalised through a term sheet signed in January 2025, followed by a commercial agreement in the fourth quarter of the year. The start of construction marks the next phase of DP World’s investment in trade-enabling infrastructure in Pakistan.
