INP-WealthPk

Chinese Company Engaged in Taking Over Pipri Corridor Project

January 27, 2022

  •  Proposal to connect the corridor with the CPEC by public-private partnerships under consideration
  • Project proposed to be completed in three phases
By Omer Bilal
  1. Islamabad, January 27, (INP-WealthPK) The Board of Investment (BOI) in collaboration with the Ministry of Railways has decided to build two additional rail lines aka Pipri Corridor from the Karachi Port Trust (KPT) to Pipri Yard and develop a model rail freight terminal for transportation of cargo without passing through the densely populated areas of the port city.
It has been reliably learnt that a well-known Chinese company has been engaged in taking over the project. In this regard, two meetings have been held and the site has also been visited, while the proposal to connect the corridor with the CPEC by public-private partnerships is also under consideration. It has been proposed that the project will be completed in three phases. The building of additional lanes and introduction of a model rail freight terminal will reduce freight cost and increase port efficiency. The project is on built operate and transfer (BOT) basis and in this regard open applications have been invited from both national and international investors. The estimated time for the completion of PKR90,000 million project is three years. The 50km corridor is of immense importance, as KPT handles an average of 3 million containers annually. In addition to the Pipri Corridor, freight shuttle trains will transport containers from Karachi port to Pipri. The KPT is located on the east of the Arabian Sea and the city has been developed around the port. The proposal centres around developing a Shuttle Train System to transfer KPT generated cargo, including containers, to Pipri located east of KPT about 45 kilometres by rail and 48Kms by road along the N-5 highway for further processing of cargo-related handling procedures. Presently, the entire ingoing and outgoing port traffic has to pass through the city, thus further congesting the roads. Earlier, China Harbour Engineering Company Limited (CHEC) had proposed a feasibility study to decongest KPT berths off-dock space constraints and increase traffic operations between the port and KPT that will significantly affect the port logistics. The increased road traffic, both direct and indirect, has seriously affected road network of the port city. The levels of service on the highways that feed the port-related traffic have over a period of time deteriorated, leading to congestion at various times during the day. This study, therefore, takes a holistic approach to the problem. It will offer a solution for better transport system management by capitalizing on dysfunctional facilities and rehabilitating the accessibility requirements of cargo traffic emanating from the port by using a multi-modal approach to solve the ills of existing and potential traffic intensity problems and to become an efficient solution by reducing the traffic demand on existing road space. The proposed centres, including Karachi’s west, south, central, Malir, Korangi, will ensure the transfer of KPT generated cargo, including containers, to Pipri yard. The distance between Pipri and KPT by road is around 45kms by rail and 48kms by road along N-5 highway. Spread over around 2,000 acres (810 hectares), Pipri yard is grossly underutilized with a complex of rail lines, hump and switching facilities to allow train formations for dispatch of goods. The master plan proposes extensions to all shore sides in order to facilitate smooth transportation of cargo. Under the project, the construction of 11 additional berths between the KPT and Pipri is also under consideration. The incoming cargo for loading up to vessels for export could be delivered by the shuttle trains from Pipri to KPT for their onward loading on vessels. As part of CPEC projects, it is noted that under the category of rail projects, the incumbent government has been considering developing 163km Karachi-Hyderabad Railway Line which will connect to the Pipri Corridor.