A newly deepened cargo terminal at Karachi port can now accommodate vessels carrying twice as much cargo as before, a development that could save Pakistani traders more than $150 million annually in freight costs, according to the facility’s chief executive.
The upgrade comes as Pakistan pushes to modernize its ports, attract foreign investment, and establish itself as a trade gateway for landlocked Central Asian economies. Disruptions to shipping routes in the Gulf have also opened opportunities for Pakistani ports to capture cargo bound for regional markets.
Dredging Doubles Vessel Capacity
The work was carried out at Karachi Gateway Terminal Multipurpose Limited (KGTML), which handles bulk commodities and general cargo. The terminal is operated by a joint venture involving Abu Dhabi-based AD Ports Group, a major international ports and logistics company, and UAE-based Kaheel Terminals.
Khurram Aziz Khan, chief executive of KGTML and the adjoining Karachi Gateway Terminal Limited (KGTL), which handles container cargo, said the completion of dredging — the removal of sediment from the seabed to deepen shipping channels and berths — had doubled the cargo-carrying capacity of vessels the bulk terminal can accommodate.
“Prior to that dredging, our port was only equipped to handle Handymax vessel which means a 60,000-ton vessel at max,” Khan said in an interview. “Now with our dredging completed already, we have the ability to handle up to 120,000 tons. We are equipping ourselves to handle post-Panamax vessel.”
Post-Panamax refers to ships larger than those designed to pass through the Panama Canal’s original locks, allowing shipping companies to transport greater volumes of cargo on individual voyages.
Freight Cost Reductions and Projected Savings
Khan said the terminal’s ability to accommodate larger vessels, combined with faster turnaround times and more efficient cargo handling, could reduce freight costs by 25 to 35 percent.
He estimated that savings could exceed $50 million next year if just 20 percent of bulk cargo volumes gradually shifted to larger vessels.
“This will gradually increase and crossing $150 million per annum,” he said.
The projected savings would be significant for Pakistan, which relies on foreign exchange to finance imports and meet external debt obligations. However, the estimates depend on shipping companies shifting sufficient cargo to larger vessels and realizing the expected efficiency gains.
Strategic Ambitions for Pakistan’s Ports
The development aligns with Pakistan’s broader strategy to modernize its maritime infrastructure and position its ports as key trade corridors for Central Asian nations lacking direct sea access. Regional shipping disruptions have further strengthened the case for Pakistani ports to attract cargo destined for nearby markets.
