Pakistan Railways, in a partnership with Dubai-based global logistics giant DP World and the National Logistics Corporation (NLC), is set to begin construction on a long-awaited Dedicated Freight Corridor. The vital infrastructure project will create a direct rail link between the Karachi Port and the Pipri Marshalling Yard, aiming to revolutionize the country’s trade logistics.
The project was recently cleared by the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), which is chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar. It will be launched with an immediate foreign direct investment of $20 million, with the total investment under the joint venture arrangement expected to rise to $400 million.
Federal Secretary Railways Syed Ali Shah hailed the cabinet committee’s approval as a “major breakthrough.” He stated that the project would be executed on an investment model, calling it a “key milestone” for achieving connectivity through sustainable transportation. The term sheet for the collaborative venture was initially signed between the three entities back in January 2025.
Once operational, the dedicated freight line is expected to significantly reduce the chronic congestion at Karachi Port, which has long been a bottleneck for trade. By accelerating the movement of goods, the corridor is designed to facilitate faster imports and exports, thereby strengthening Pakistan’s entire logistics infrastructure and boosting overall economic activity.
