Pakistan has formally launched construction of the Pipri Dedicated Freight Corridor (DFC) and Multimodal Logistics Park, a major China–Pakistan Economic Corridor (CPEC)-aligned infrastructure project aimed at strengthening freight connectivity between Karachi’s ports, Pakistan’s inland markets, and onward routes to China and Central Asia.

The construction follows a groundbreaking ceremony held at the project site, attended by Federal Minister for Railways Hanif Abbasi, DP World Group Chairman and CEO Sultan Ahmed bin Sulayem, and senior representatives from the National Logistics Corporation (NLC), Pakistan Railways, and port and terminal operators, according to a report carried by Gwadar Pro on Thursday.

The project is being jointly developed by DP World, Pakistan Railways and NLC, with NLC serving as the executing agency. It involves an estimated $400 million in foreign direct investment and is expected to generate annual savings of up to Rs100 billion by reducing logistics costs and transit times. The first phase includes the rehabilitation of a 52-kilometre railway corridor linking Karachi Port with the Marshalling Yard at Pipri, alongside the development of a state-of-the-art Multimodal Logistics Park.

Phase one is targeted for completion within four months. Once operational, import containers arriving at Karachi’s ports will be transported directly by rail to Pipri and then dispatched onward by rail and road to destinations across Pakistan, as well as to China, Central Asia and other regional markets. Pakistani export cargo will follow the reverse route, improving turnaround times and overall supply chain efficiency.

The project aims to address chronic container congestion at Karachi Port by shifting freight movement from road to rail. Pakistan’s limited rail-based freight capacity has long contributed to slow cargo clearance, increased road congestion, higher emissions, and accelerated wear and tear on urban road infrastructure. Designed as a long-term solution, the Pipri Dedicated Freight Corridor and integrated logistics park will combine rail, road and port operations into a single logistics hub, offering warehousing, stuffing and de-stuffing, cargo consolidation and other value-added services.

The corridor is aligned with Pakistan Railways’ ML-1 project under the CPEC framework and is expected to significantly decongest Karachi’s ports, divert heavy container traffic away from city roads, lower carbon emissions and extend the lifespan of critical road infrastructure. Speaking at the ceremony, Sultan Ahmed bin Sulayem said the integration of rail, road and port infrastructure through the Pipri project would enhance trade flow efficiency, support sustainable logistics and strengthen Pakistan’s position as a key regional trade gateway.

The collaboration between DP World, NLC and Pakistan Railways was formalised through the signing of a term sheet in January 2025, followed by a commercial agreement in the fourth quarter of 2025. The start of construction marks the next phase of DP World’s continued investment in trade-enabling infrastructure in Pakistan and the wider region.

Credit: Independent News Pakistan (INP) — Pak-China