DP World, NLC plan $400m freight corridor with Pakistan Railways

(Web Desk) - Pakistan Railways, in partnership with Dubai-based DP World and the National Logistics Corporation (NLC), is set to begin construction of the long-awaited Dedicated Freight Corridor linking Karachi Port with the Pipri Marshalling Yard.

The project will start with an immediate foreign direct investment of $20 million, rising to $400 million under a joint venture arrangement, according to officials. It was recently cleared by the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar.

Federal Secretary Railways Syed Mazhar Ali Shah hailed the decision as a major breakthrough. “In partnership with DP World and NLC, the project will be executed on investment mode. A key milestone achieved today! Connectivity through sustainable transportation,” he said.

The term sheet for the project had already been signed in January 2025 between Pakistan Railways, DP World and NLC. Once operational, the freight corridor is expected to significantly reduce congestion at Karachi Port, accelerate trade facilitation and strengthen Pakistan’s logistics infrastructure—enhancing imports, exports and overall economic activity.