The governments of Dubai and Pakistan signed two framework agreements on developing an economic zone at Port Qasim and dredging its navigation channel.
The potential establishment of a Dedicated Freight Corridor is also included in the deal.
DP World will act on behalf of the Dubai government, while state-run Pakistan Railways and Port Qasim authority will act on behalf of the Pakistan government, for the development of the projects.
In the agreement it is planned the Dedicated Freight Corridor to run from Karachi Port on the Arabian Sea, passing through Karachi, Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 45kms away.
A second framework agreement was signed with Pakistan’s ministry of maritime affairs to dredge the navigation channel.
DP World will carry out the capital dredging on behalf of the government of Dubai.
This framework agreement will also see the development of an economic zone at Port Qasim, which aims to attract more than US $3 billion of foreign direct investment.
DP World, on behalf of the government of Dubai, will carry out the development of the economic zone, with the aim of maximising economic activity in Pakistan.
Sultan Ahmed bin Sulayem, chairman of PCFC, group chairman and CEO of DP World, said: “Pakistan is a growing market, and an important trade corridor to Central Asia.
“We are proud to have contributed to its trading ability through our operations at Qasim International Container Terminal and are honoured to work with various Pakistani government organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment.”
H.E. Shahid Ashraf Tarar, federal minister of communication, railways and maritime affairs, pointed out: “The signing of Investment Framework Agreements highlights the importance of Pakistan as gateway to Asia and commercial dividends associated with its strategic location”.
