Dubai, Pakistan to cooperate on rail, economic zones

The governments of Dubai and Pakistan have signed agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a dedicated freight corridor and economic zone near Karachi.

DP World will act on behalf of the Dubai Government, while state-run Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan Government, for the development of these projects.

The agreements were signed at the World Economic Forum in Davos by Shahid Ashraf Tarar, Pakistan's Federal Minister of Communication, Railways and Maritime Affairs, and Sultan Ahmed bin Sulayem, Chairman of Dubai's Ports, Customs and Free Zone Corporation (PCFC).

At #WEF24: Dubai and Pakistan signed an agreement to cooperate on rail, economic zones and infrastructure improvement. We are proud to collaborate in our shared ambitions of boosting Pakistan's trade potential: https://t.co/esb0m5lJPH#MadePossible @ssulayem pic.twitter.com/ZRkcKlywBl

— DP World (@DP_World) January 18, 2024

Freight Corridor 

The Dedicated Freight Corridor is planned to run from Karachi Port on the Arabian Sea, passing through Karachi, Pakistan’s most populous city, to the Pipri Marshalling Yard, nearly 45 km away. This will improve efficiency, transport times, and reduce the overall cost of logistics.

Headquartered in Lahore, Pakistan Railways is Pakistan’s national, state-owned railway company, owning and operating nearly 8,000 km of railway across the country, from Torkham in the northwest to Karachi in the south.

Qasim International Container Terminal 

A framework agreement was signed with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel. DP World will carry out the capital dredging on behalf of the Government of Dubai.

Economic Zone 

This framework agreement will see the development of an economic zone at Port Qasim, which aims to attract more than $3 billion of foreign direct investment.

DP World, on behalf of the Government of Dubai, will carry out the development of the economic zone, with the aim of maximising economic activity in Pakistan.

DP World began operations in Pakistan in 1997 at the Qasim International Container Terminal – the first of its kind in the country – and has since transformed the facility into a leading gateway for trade in the region.