ISLAMABAD – Karachi Port Trust (KPT) and Port Qasim Authority (PQA) are facing significant challenges in their maritime sector due to long-standing connectivity and transshipment issues. Amid soaring global competition, outdated infrastructure and cumbersome processes are hamstringing the nation’s ports, prompting urgent calls for modernisation that could transform Pakistan’s position in the global trade arena.
At the heart of the issue is the lack of robust road and rail connectivity at KPT. Sources within the Defence Ministry reveal that the absence of a dedicated Cargo Express Way limits freight operations to a mere six to seven hours per day. Outmoded railway links further impede the efficient movement of goods, putting KPT at a disadvantage in an era when logistics speed is synonymous with a competitive edge.
Adding to these woes is the critical matter of port channel depth. Although KPT’s main channel measures 16 meters, the inability to maintain this depth restricts the docking of larger, high-capacity vessels. The situation at PQA is even more challenging; silting has further compromised its channel, which was originally 15 meters deep. This not only curtails the volume of cargo that can be handled but also dampens the potential for transshipment—a process where cargo is transferred from one vessel to another, a strategy that global shipping hubs like Dubai’s Jebel Ali execute on a massive scale. In stark contrast, KPT currently handles only 0.017 million TEUs (Twenty-foot Equivalent Units) annually compared to Jebel Ali’s impressive 14 million TEUs.
The financial implications are equally striking. Importers at Qasim International Container Terminal (QICT) face exorbitant charges averaging Rs14,000 per TEU, whereas KPT’s fees stand at a much more competitive Rs5,000 per TEU. Such steep costs have forced traders to explore costlier alternatives, further undermining the efficiency and appeal of Pakistan’s port operations.
A Task Force on Maritime Revamping has put forward a series of bold proposals to turn the tide. Among these are plans to construct an elevated expressway to enhance road connectivity at KPT and fast-track approval for deepening the main channel. In addition, restoring redundant rail links and committing to regular dredging are seen as essential steps to maintain channel depth, thereby allowing larger vessels to dock and boosting cargo handling capacity.
Beyond physical infrastructure, there is an urgent need for an operational overhaul. Global best practices in port management see clearance processes completed within 48 to 72 hours, yet Pakistani ports can take up to 14 days to clear shipments. This inefficiency translates into additional freight charges of $100 per day, a cost burden that ultimately trickles down to consumers. The ports aren’t competitive because of old, slow clearance procedures and manual processing. The KPT-SAPT (South Asia Pakistan Terminal) agreement, which was supposed to secure 60% of terminal business through transshipment but hasn’t been put into action, also discourages important investment.
Problems also happen at Off-Dock Terminals (ODTs), which have issues with regulatory oversight and using internationally leased facilities, even though they offer more space for inspecting and clearing containers. These issues have fostered revenue losses due to smuggling, misdeclaration, and under-invoicing, further compounding the difficulties faced by local port authorities.
Yet, amidst these challenges, rays of hope are emerging. Global shipping giant Maersk has signaled its interest in investing a staggering $2 billion in Pakistan’s maritime sector. The proposed investment would cover the establishment of integrated logistics hubs, the construction of deep-water container terminals, and even the setup of International Maritime Organisation (IMO)-compliant ship recycling facilities—a move that could not only modernise Pakistan’s ports but also stimulate local job creation and economic growth.
Adding momentum to these initiatives, a Pakistan Customs Gap study is set to be released in March 2025, with expectations that it will offer a blueprint for much-needed process improvements and streamline customs and clearance protocols. The study suggests using high-tech scanners and electronic seals to check all of the containers thoroughly and connecting ODTs to the Pakistan Single Window (PSW) to make things more open and efficient.
As Pakistan stands on the brink of maritime transformation, the coming months will be crucial. With strategic investments, policy reforms, and the adoption of global best practices, Pakistan’s ports could soon emerge as vibrant, competitive hubs that propel the nation into a new era of international trade.
