KARACHI:

Karachi Gateway Terminal Limited (KGTL), a joint venture of AD Ports Group and Kaheel Terminals, a UAE-based company, has launched an ambitious dredging programme at the East Wharf of the Port of Karachi. The initiative will deepen berths and navigation channels at KGTL, enabling the terminal to accommodate post-panamax vessels with a capacity of over 13,000 TEUs.

Simultaneously, KGTL’s sister venture, Karachi Gateway Terminal Multipurpose Limited (KGTML), will enhance its bulk handling capability, allowing the accommodation of vessels up to 120,000 tonnes compared to the current 60,000 tonnes.

For Pakistan’s exporters and importers, these upgrades will translate directly into tangible gains. Post-panamax vessels are larger ships that bring economies of scale, reducing per-unit freight costs and optimising foreign exchange expenditure on shipping. In turn, more competitive pricing will strengthen export volumes, particularly for industries such as cement, rice, and fertilisers.

The dredging project, scheduled for completion in early 2026, is also expected to improve operational efficiency. The turnaround time for a 60,000-tonne grain vessel is projected to drop from 12 days to just three, cutting port stays by days and boosting throughput significantly.

The Port of Karachi already handles approximately 60% of the nation’s cargo, underscoring its central role in Pakistan’s import-export activity.

By enhancing its capacity on major shipping lanes, Pakistan can position itself more effectively as a gateway for the “Middle Corridor,” linking Central Asia with global markets.

However, experts caution that infrastructure upgrades alone will not guarantee efficiency unless operational bottlenecks are addressed. Karachi Port has long struggled with congestion, ageing equipment, and fragmented customs procedures. Unless improvements extend beyond the quayside to hinterland connectivity, trucking networks, and rail freight, much of the benefit from dredging could be diluted.

By deepening berths, the port will be better integrated into global shipping routes, strengthening Pakistan’s case as a South Asian maritime hub. Yet, regional competition is intensifying. Ports in India, Sri Lanka, and the Middle East are rapidly modernising, offering digitalised customs clearance, bonded logistics parks, and intermodal connectivity.

For Karachi to keep pace, parallel investments in automation, digital tracking, and customs reforms will be essential. Without these measures, even with deeper berths, shipping lines may favour alternative regional hubs that promise smoother operations and lower transaction costs.

The dredging project is fully funded by AD Ports Group under long-term concessions, 50 years for container handling and 25 years for bulk cargo. The investment signals confidence in Pakistan’s maritime future at a time when foreign direct investment remains volatile. Yet, Pakistan’s broader economic fragility could still cast shadows. Currency fluctuations, high energy costs, and political uncertainty risk undermining the competitiveness the project seeks to bolster.

Large-scale dredging projects also raise environmental and urban planning challenges. Sediment disposal, marine ecosystem disruption, and coastal erosion are concerns requiring careful management.