DP World backs Pakistani rail corridor project: DP World is set to invest USD 400 mn into a freight corridor — running from Pakistan’s Karachi Port to Pipri marshalling yard at Port Qasim — under a joint agreement with Pakistan Railways and state-run National Logistics Corporation (NLC), Arab News reports, citing a statement from NLC.

Connecting Pakistan’s busiest hubs: The freight rail will connect Port Qasim and Karachi Port, which together handle about 90% of the country’s trade, according to data from the Karachi Custom Agents Association. Both ports are located in the Karachi area and overlook the Arabian Sea.

A long-time coming: DP World inked a term sheet with Pakistan’s Special investment Facilitation Council (SIFC) for the development of the freight corridor back in January. The cooperation comes as part of a wider UAE push into Pakistan after the government of Dubai signed two investment framework agreements last year worth USD 3 bn with Pakistan to cooperate on railways, economic and logistics zones, and multimodal infrastructure.

DP World, NLC have more going on for them: DP World and NCL are also collaborating on transnational intermodal freight, and have recently concluded their first commercial cargo delivery through a new intermodal route connecting UAE and Central Asia just last week (watch, runtime: 00:58). The shipment — which took off from UAE’s Jebel Ali Port — was shipped to Karachi and then moved via road to Tajikistan’s Dushanbe in some 16 days.

Other UAE majors are going all in on Karachi: AD Ports Group secured a 25-year concession to expand the bulk and general cargo terminal at Karachi Port last year. The agreement will see AD Ports invest USD 175 mn through its JV with UAE-based Kaheel Terminals to build new berths in the terminal and boost its capacity.

IN OTHER NEWS FROM DP WORLD-

Port operator DP World is in advanced talks to operate a new container terminal in Canada’s Québec, Bloomberg reported on Friday. Construction on the USD 1.2 bn (AED 4.4 bn) terminal project — located in Contrecœur, along the St Lawrence River northeast of Montréal — is set to begin this month, with completion scheduled for 2029.

About the project: The new terminal will feature two berths, a container handling yard with a 1.2 mn TEU capacity, an intermodal linkage yard, and industrial services facilities. It is projected to boost Montréal Port Authority’s handling capacity by over 50% to 2.1 mn TEUs annually. The authority — which manages the largest container port in Eastern Canada — handles 2k vessels annually across 23 terminals, according to its website.

Why does this matter to Canada? Expanding Montréal Port’s capacity is critical to Canada’s supply chain resilience amid trade volatility with the US. Without expansion, the port could quickly reach its full handling capacity if only 6% of US-bound exports are diverted elsewhere. Expanding port infrastructure in Eastern Canada would therefore help the country stay ahead of future congestion while cutting costs for regional businesses — which would otherwise have to transport their goods to be handled elsewhere.

REMEMBER- The Dubai-based port operator heads several projects in Canada, including in Vancouver, Nanaimo, Prince Rupert, and Fraser Surrey, according to its website. The company operates in Canada through its JV — DP World Canada — in which Canadian investment group Caisse de Dépôt et Placement du Québec holds a 45% stake, with DP World retaining the remaining shares.

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