Hutchison’s $3 billion Karachi port expansion plan stuck over concession, procurement issues: report

A planned $3 billion investment by Hong Kong-based Hutchison Ports to expand container handling facilities at Karachi’s ports has slowed due to regulatory and contractual issues, Arab News reported.

The investment is aimed at expanding operations at the South Asia Pakistan Terminal and Karachi International Container Terminal, while developing new logistics facilities to support Pakistan’s plans to become a regional transit and transhipment hub linking South Asia, Central Asia and the Middle East.

The proposal gained momentum after Hutchison Ports Chief Executive Officer Eric Ip met Prime Minister Shehbaz Sharif in May 2025. Following the meeting, the company increased its proposed investment from $1 billion to $3 billion.

However, officials of the company said progress had been delayed by questions over whether the concession agreement governing Karachi Gateway Container Terminal, operated by UAE-based AD Ports Group, and public procurement rules allow the project to proceed.

A Hutchison Ports official involved in the discussions said that authorities had cited the government’s concession with Karachi Gateway Container Terminal, under which no new terminal can be built until container handling reaches four million containers.

Another issue relates to Public Procurement Regulatory Authority rules. The company official said the Ministry of Maritime Affairs had indicated that a tender would be required for the project to move ahead.

Under Hutchison Ports’ proposal, around $1.8 billion would be invested over the next five to seven years, while the remaining amount would be used for longer-term refurbishment and expansion.

The plan includes a logistics park near South Asia Pakistan Terminal with warehousing, container freight station operations, roll-on/roll-off handling, distribution centres and bonded areas.

The proposal also includes expanding berthing and yard capacity at South Asia Pakistan Terminal and Karachi International Container Terminal.

South Asia Pakistan Terminal’s berthing facilities would be extended by around 900 metres, while Karachi International Container Terminal would expand into unused Karachi Port Trust land at West Wharf to increase berthing length and backup yard capacity.

A second Hutchison Ports official said additional capacity would be needed if Pakistan wants to benefit from future regional trade and transhipment opportunities.