KARACHI: Karachi Gateway Terminal Limited (KGTL) a joint venture between AD Ports Group and UAE-based Kaheel Terminals has begun an extensive dredging project at the East Wharf of Karachi Port, a move that promises to reshape Pakistan’s maritime trade capacity.
The programme, expected to conclude in early 2026, will deepen berths and navigation channels to allow post-panamax vessels carrying over 13,000 TEUs to dock at the port. In parallel, Karachi Gateway Terminal Multipurpose Limited (KGTML), a sister venture, is expanding its bulk cargo handling capacity to accommodate ships of up to 120,000 tonnes, double the current 60,000-tonne limit.
For Pakistan’s exporters and importers, these upgrades are not just cosmetic. Larger ships mean lower freight costs per unit and improved foreign exchange efficiency. This is particularly significant for major export sectors like cement, rice, and fertilisers, where competitive shipping rates can directly impact international sales.
The benefits extend to port efficiency as well. Officials estimate that the turnaround time for a 60,000-tonne grain vessel will shrink dramatically from 12 days to just three. Faster movement of cargo means higher throughput, reduced congestion, and more predictable logistics for businesses that depend on timely shipments.
Currently, the Port of Karachi handles nearly 60% of Pakistan’s cargo, making it the backbone of the country’s external trade. By upgrading capacity, the port hopes to position itself as a more attractive node in regional supply chains, particularly along the so-called “Middle Corridor” linking Central Asia to global markets.
Concerns Beyond the Waterline
Industry experts, however, warn that deeper berths alone will not solve Karachi’s longstanding operational inefficiencies. Persistent bottlenecks ranging from outdated equipment and slow customs clearance to weak trucking and rail connectivity risk undercutting the benefits of dredging. Competing ports in India, Sri Lanka, and the Middle East are already offering digitalised systems, bonded logistics parks, and streamlined intermodal networks, raising the stakes for Karachi to keep pace.
“There’s no question the dredging will boost capacity,” one shipping analyst noted. “But unless Pakistan invests in automation, customs reforms, and stronger hinterland connectivity, shipping lines may continue to prefer regional hubs that promise smoother, faster operations.”
A Vote of Confidence — and a Risk
The dredging project is being financed entirely by AD Ports Group under long-term concession agreements 50 years for container handling and 25 years for bulk cargo. The investment reflects strong confidence in Pakistan’s maritime potential at a time when foreign direct investment remains shaky.
Yet, risks remain. Currency instability, rising energy costs, and political uncertainty could erode the competitiveness the project aims to create. Large-scale dredging also poses environmental challenges, including sediment disposal, ecosystem disruption, and coastal erosion issues requiring careful oversight.
For now, though, the initiative marks a bold step forward. If paired with broader reforms, Karachi Port could finally move closer to its ambition of becoming a true regional maritime hub, connecting South Asia, the Middle East, and Central Asia through one of the busiest sea routes in the world.
