The governments of Dubai and the Islamic Republic of Pakistan have signed two major deals to collaborate on rail networks, economic zones and infrastructure improvement, worth an estimated $3 billion.
The agreements include plans to develop a rail route to improve efficiency and transport times and reduce the overall cost of logistics, as well as the potential establishment of a dedicated freight corridor and an economic zone near Karachi.
The deals were signed at the World Economic Forum in Davos, Switzerland by Shahid Ashraf Tarar, Federal Minister of Communication, Railways and Maritime Affairs, Islamic Republic of Pakistan, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), Government of Dubai.
Transportation and logistics plans
The new agreements discuss the building of a dedicated freight corridor that would run from Karachi Port on the Arabian Sea, passing through Karachi, Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 45 km away.
The project is projected to improve efficiency and transport times, as well as reduce the overall cost of logistics.
A second framework agreement was also 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.
“Pakistan will continue to facilitate partner enterprises to realise its geo-economic vision as a hub of commerce and industry”
Pakistan Caretaker Prime Minister Anwaarul Haq Kakar
Economic zones
The agreement between Dubai and Pakistan also included the development of an economic zone at Port Qasim, which aims to attract more than US$3 billion of foreign direct investment.
Under the agreements, Dubai’s state-owned port giant DP World will act on behalf of the Government of Dubai, while Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan Government, for the development of the projects.
During the announcement, DP World CEO Sultan Ahmed bin Sulayem said Pakistan is a growing market and an important trade corridor to Central Asia.
“We are proud to have contributed to its trading ability through our operations at Qasim International Container Terminal and are honoured to work with various Pakistani government organisations to develop new freight system and with Port Qasim Authority to enhance port connectivity and investment,” he said.
