NLC and DP World Sign $400M Agreement with Pakistan Railways for Dedicated Freight Corridor

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September 11, 2025
4:09 pm

Pakistan’s transport sector has reached a major milestone as National Logistics Corporation (NLC) and global logistics giant DP World signed a $400 million agreement with Pakistan Railways. This landmark project will develop Phase-1 of the Dedicated Freight Corridor (DFC) at Pipri, Karachi, promising faster cargo movement and a modern freight transport network.

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Project Overview

The Dedicated Freight Corridor is designed to revolutionize Pakistan’s cargo transport.

Investment Size: $400 million foreign direct investment (FDI)

Phase-1 Goal: Build infrastructure that streamlines freight movement from Karachi Port to major inland destinations.

Location: Pipri, Karachi

This initiative reflects a strategic partnership among public and private sectors to strengthen the country’s logistics backbone.

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Reducing Road Congestion

Currently, a large portion of Pakistan’s freight relies on road transport, creating heavy traffic and higher transportation costs. The DFC will:

Shift significant cargo volume to rail

Ease road congestion around Karachi Port

Lower wear and tear on highways, cutting maintenance costs for the government.

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Economic and Environmental Benefits

The project is more than just a transport upgrade. Its economic impact includes:

Revenue Generation: Pakistan Railways will earn from freight charges, track access fees, and revenue sharing.

Job Creation: Construction and operations will provide employment opportunities.

Lower Emissions: Rail transport is more fuel-efficient, helping reduce carbon emissions compared to road freight.

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Strengthening Pakistan Railways

Pakistan Railways has long needed modernization to compete with regional freight networks. This project will:

Upgrade rail infrastructure and technology

Improve service reliability and speed

Position Pakistan as a logistics hub in South Asia, attracting further investments.

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Role of DP World and NLC

DP World: A global port operator with expertise in building and managing large-scale logistics solutions. Their involvement ensures international best practices.

National Logistics Corporation: Pakistan’s premier logistics provider, bringing local operational know-how and strategic coordination with government agencies.

This collaboration blends international investment with domestic expertise to maximize efficiency and outcomes.

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Broader Impact on Trade

The Dedicated Freight Corridor will streamline cargo movement from Karachi Port, improving trade routes for exports and imports. Key expected results:

Faster turnaround for shipments

Lower shipping costs for businesses

Enhanced competitiveness for Pakistan’s exports in regional and global markets.

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Conclusion

The $400 million agreement between NLC, DP World, and Pakistan Railways is a transformative step for Pakistan’s transport and logistics sector. By reducing road congestion, improving freight efficiency, and generating revenue, the Dedicated Freight Corridor sets the stage for sustainable economic growth and modernization.

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Disclaimer

This article is for informational purposes only. The implementation and progress of the Dedicated Freight Corridor project are the responsibility of the relevant authorities. We do not guarantee the accuracy of projected outcomes.

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