KGTL plans up to $100 million more investment in Karachi port after cargo surge from Iran war

Karachi Gateway Terminal Limited (KGTL) plans to invest another $75 million to $100 million over the next five years to expand port handling capacity, develop bulk export infrastructure and explore rail freight links, as Pakistan seeks to lower freight costs and capture regional cargo flows. 

The company, backed by Abu Dhabi Ports Group, has already completed a $60 million dredging project at Karachi Port and is expanding container and bulk-handling facilities, Chief Executive Officer Khurram Aziz Khan told Reuters in an interview.

Khan said the next investment phase would focus on expanding the container terminal, increasing yard capacity, adding larger ship and yard cranes, and developing dedicated bulk export infrastructure.

The plan also includes silos, warehouses and automated conveying systems.

KGTL is also studying investment in rail freight, including locomotives, rolling stock and storage hubs near agricultural areas, to connect those regions with ports.

Khan said this would help Pakistan export products such as 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.”

The company also sees an opportunity in transshipment cargo after the Iran war disrupted regional shipping and led to some cargo being routed through Karachi for onward shipment.

“Pakistan has never really handled transshipment volume,” Khan said. “This conflict has created this opportunity for Pakistan.”

The dredging project is expected to allow Karachi Port to handle bulk vessels of up to 120,000 metric tonnes, compared with about 60,000 tonnes previously.

Khan said this would happen once Karachi Port Trust issues revised handling parameters, which are expected within days.

KGTL is also upgrading its bulk terminal to reduce handling time for a 60,000-tonne vessel to about 2.5 to 3 days from the current 12 to 15 days.

The company is building silos with annual capacity of 8.5 million tonnes for clean bulk cargo, which it says will support national food security.

It is also developing bulk export warehouses and systems for fertiliser imports.

Khan said Pakistan’s ability to convert the recent cargo shift into lasting gains would depend on improvements in road and rail connectivity.

He said better inland transport links were needed to support port efficiency, regional transit and export competitiveness.