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Karachi’s Economy at Risk Without Dedicated Freight Corridors, Officials Warn

Time:2010-12-5 17:23:32  Author:Encyclopedia   Source:Knowledge  Views:  Comments:0
Summary:**Karachi’s Economy at Risk Without Dedicated Freight Corridors, Officials Warn***Introduction* Kar

**Karachi’s Economy at Risk Without Dedicated Freight Corridors, Officials Warn**

*Introduction*
Karachi, Pakistan’s commercial hub, faces mounting pressure on its logistics network as officials warn that the absence of dedicated freight corridors could cripple the city’s economic growth. With the Port of Karachi handling over 60 % of the nation’s maritime cargo, bottlenecks in road and rail connections threaten to raise costs, delay shipments, and deter foreign investment.

*Key Developments*
Recent statements from the Karachi Port Trust (KPT) and the Ministry of Communications highlight a growing consensus: existing arterial roads—such as the Muhammad Ali Jinnah Road and the Super Highway—are saturated, while the rail link between the port and the interior remains underutilized due to outdated infrastructure. A joint task force, formed in March 2024, has proposed two dedicated freight corridors: a 45‑kilometre elevated expressway linking the port to the Korangi Industrial Area, and a upgraded double‑track rail line connecting Karachi to the Punjab hinterland via Rohri. Pilot studies estimate that these corridors could cut average truck transit time from the port to inland distribution centers by up to 40 %.

*Industry Analysis*
Logistics analysts argue that the current reliance on mixed‑use roads exacerbates congestion, increases fuel consumption, and raises emissions—factors that directly erode competitiveness. “Every hour a container sits idle at the port adds roughly $150 to the landed cost of goods,” said Ahsan Malik, senior analyst at Karachi Economic Research Institute. The proposed corridors would segregate freight traffic, allowing smoother flow‑laden trucks. By diverting trucks to maintain higher speeds and reducing wear on urban roadways. Moreover, improved rail capacity could shift up to 25 % of bulk cargo from road to rail, aligning with national goals to lower logistics costs from the current 18 % of GDP to below 12 % by 2030.

*Future Outlook*
If the corridors are approved and funded through a mix of public‑private partnerships and concessional loans, Karachi could see a rebound in trade volumes within two years. Stakeholders anticipate a 10‑15 % increase in container throughput at the port, which would stimulate ancillary sectors such as warehousing, customs brokerage, and last‑mile delivery. Conversely, failure to act
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