Maritime ministry unveils major port, energy and shipping initiatives

Pakistan is advancing a series of maritime and energy infrastructure projects, including the proposed "Energy City" initiative, which has already drawn interest from several oil-producing countries seeking to store petroleum products in the country, Federal Minister for Maritime Affairs Junaid Anwar said.

Addressing the Lahore Chamber of Commerce and Industry (LCCI), the minister said the Energy City project would operate through private-sector investment, with companies leasing government land to develop modern oil storage facilities. Oil stored at the sites could be re-exported without duties, while the reserves would also provide Pakistan with access to strategic supplies during periods of market disruption. He said the model was intended to attract investment, given the country's limited ability to independently finance large-scale strategic petroleum reserves.

Reviewing the ministry's performance, Anwar said more than 100 reform measures had been introduced, contributing to improved international standing for the country's ports. Karachi Port Trust (KPT) climbed from 99th to 69th place in global rankings, while Port Qasim advanced to 56th. He added that KPT earned a record Rs18.8 billion in profit during the current year, the highest in its 138-year history.

The minister said Pakistan National Shipping Corporation (PNSC) had expanded its fleet by adding three vessels, increasing overall capacity by 40%, with further expansion planned. He also said the ministry ensured uninterrupted petroleum imports during the recent regional crisis by securing a vessel for $0.8 million that had initially been quoted at a charter cost of $14 million.

According to the minister, port charges on transshipment cargo were reduced by up to 50% during wartime conditions and logistical disruptions to ease pressure on businesses. He added that after transshipment operations were launched, Pakistani ports handled within just 24 days a cargo volume that had previously taken an entire year to process.

Anwar said work was also progressing on several large-scale infrastructure schemes. These include a floating LNG terminal, while technical studies for a land-based LNG terminal have been completed, with the project expected to attract between $3 billion and $4 billion in investment. He also announced plans for a $1.4 billion "Sea 2 Steel" shipbuilding project at Port Qasim, alongside the development of a multipurpose cargo terminal, an integrated oil terminal storage facility and new container terminals. In addition, the Manora Shipyard is being revived to enable ship repairs within Pakistan instead of sending vessels to Singapore or China.

He further said fisheries exports had exceeded their $500 million target, reaching $568 million.

Speaking separately, LCCI President Faheem Ur Rehman Saigol said Pakistan had not fully leveraged the economic potential of its nearly 1,000-kilometre coastline despite its strategic geographic position. He urged faster digitalisation of port operations, saying delays in cargo clearance increase business costs and erode global competitiveness. Saigol added that Pakistan pays about $5 billion annually in maritime freight to foreign shipping companies and said expanding the national shipping line and its container fleet could help retain a greater share of that foreign exchange within the country.