DP World invests in Pakistani freight corridor: DP World is set to funnel USD 400 mn into a freight corridor running from Pakistan’s Karachi Port to Pipri Marshalling Yard under a joint agreement with Pakistan Railways and state-run National Logistics Corporation (NLC), Arab News reports, citing a statement from NLC.

A long-time coming: The government of Dubai signed two investment framework agreements last year worth USD 3 bn with Pakistan to cooperate on railways, an economic zone at Port Qasim, and infrastructure. The agreements cover the development of a dedicated rail-based freight corridor, multi-modal logistics park, and freight terminals.

Karachi’s been getting a lot of attention from top UAE players: DP World and NLC also last week completed the first commercial cargo delivery to Tajikistan through Karachi in just 16 days. AD Ports Group also inked a 25-year concession agreement for more berths at a bulk and general cargo terminal at Karachi Port with Pakistan’s federal government agency Karachi Port Trust last year. The JV will invest USD 75 mn in the first two years in port infrastructure and equipment, with a planned USD 100 mn to be invested within five years to boost the terminal’s capacity by 75%.

IN OTHER NEWS FROM DP WORLD-

DP World eyes control of another container terminal in Canada: Port operator DP World is in advanced talks to operate a new container terminal in Canada’s Québec, Bloomberg quotes DP World Canada CEO Officer Douglas Smith as saying. Construction on the USD 1.2 bn (AED 4.4 bn) terminal project — located in Contrecœur, along the St. Lawrence River in northeast of Montréal — could begin as soon as this month, with completion scheduled for 2029.

About the project: The new terminal will feature two berths, a container handling yard with about 1.2 mn TEUs capacity, an intermodal linkage yard, as well as industrial services facilities. It is projected to boost the port’s handling capacity to another 1.15 mn containers annually, up from 2.1 mn TEUs expected to be fully reached by 2030.

Why now? Expanding Montréal Port’s capacity is critical for Canada’s supply chain resiliency 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. By expanding port infrastructure in Eastern Canada, the country would be able to get ahead of future congestion while cutting costs for regional businesses, which would otherwise be forced to transport their goods to be handled at ports elsewhere.

REMEMBER- The port operator has strong ties to Canada: Canadian investment group Caisse de Dépôt et Placement du Québec holds stakes in DP World’s Canadian assets — including a 45% share in DP World Canada. The Dubai-based port operator heads several projects in Canada, including in Vancouver, Nanaimo, Prince Rupert, and Fraser Surrey, according to its website.

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