Karachi Gateway Terminal Ltd (KGTL), backed by Abu Dhabi Ports Group, is planning up to $100 million in new investment within five years to capitalize on a cargo surge triggered by the Iran war and position Pakistan as a regional transshipment hub. The terminal has already completed a $60 million dredging project at Karachi Port, which will allow handling of bulk vessels up to 120,000 metric tons, up from 60,000 tons previously, once revised handling parameters are issued by Karachi Port Trust.
Investment Plans and Expansion
KGTL CEO Khurram Aziz Khan told Reuters that the company is targeting an additional $75 million to $100 million in investment over the next five years. This next phase will focus on expanding the container terminal, enhancing yard capacity, acquiring larger ship and yard cranes, and building dedicated bulk export infrastructure including silos, warehouses, and automated conveying systems.
Khan also revealed that KGTL is exploring investment in rail freight, including locomotives, rolling stock, and storage hubs near agricultural areas. This would link farming regions to ports and help Pakistan export products like corn and rice more competitively. “For transit as well, you need to provide a complete solution,” Khan said. “We are ready to invest in that as well, to bring our own rolling stock and locomotive for the freight trains business.”
Disruption into Traffic: Iran War Opportunity
The Iran war created a new opportunity for Pakistan to act as a transshipment hub, as cargo was rerouted through Karachi for onward shipment to other destinations during the conflict. “Pakistan has never really handled transshipment volume,” Khan said. “This conflict has created this opportunity for Pakistan.”
The dredging project is expected to significantly improve port efficiency. KGTL is upgrading its bulk terminal to cut handling time for a 60,000-ton vessel to about 2.5 to 3 days from the current 12 to 15 days. The terminal is also building silos with annual capacity of 8.5 million tons for clean bulk cargo to secure national food security, along with bulk-export warehouses and systems for fertilizer imports.
Infrastructure Challenges and Future Outlook
However, sustaining these gains will depend on better road and rail links, Khan warned. The company is working with authorities to improve connectivity to ensure that the increased cargo volumes can be efficiently moved inland. KGTL's investments aim to reduce freight costs for Pakistani exporters and make the country a more competitive player in global trade.
