By Ijaz Kakakhel

A Rs80.352 billion Lyari Elevated Freight Corridor has been proposed in Karachi to provide a dedicated route for cargo movement from Karachi Port and improve freight connectivity in the country’s largest port city.

According to official project details available with Wealth Pakistan, the proposal envisages construction of a 22-kilometre elevated freight corridor, with the total length reaching 25 kilometres including approach roads from the Mauripur and Sohrab Goth sides.

The project is estimated to cost Rs80.352 billion ($288 million). Under the proposed financing structure, 80% or Rs64.282 billion ($230.4 million) will come through a loan from the Korean EXIM Bank, while the remaining 20% or Rs16.070 billion ($57.6 million) will be financed through local/PSDP resources.

The Ministry of Maritime Affairs is the sponsoring agency, while Karachi Port Trust (KPT) is the executing agency.

The corridor is planned as an expressway with a minimum of two lanes in each direction, with each lane measuring 3.65 metres. It will include shoulders and a median and will be designed to accommodate freight vehicles of at least six axles in accordance with National Highway standards.

According to the document, the proposal is aimed at streamlining cargo transportation from Karachi Port, where limited road infrastructure and heavy congestion restrict freight movement largely to nighttime operations and affect overall transport efficiency.

The elevated corridor is also envisaged as part of efforts to improve freight traffic flows and support Pakistan’s Vision 2025 objective of developing the country into a regional trade hub for Central Asia.

The project has an original implementation period from March 15, 2025 to March 15, 2028, although it remains at the preparatory stage and requires the completion of feasibility and approval processes.

The Central Development Working Party (CDWP) considered the project’s Concept Clearance Proposal on December 12, 2024 and directed that it be resubmitted after consultation with stakeholders and examination of possible options for easing traffic congestion to and from Karachi Port.

Subsequently, KPT informed the Ministry of Maritime Affairs in March 2025 that the Korean EXIM Bank’s Economic Development Cooperation Fund (EDCF) had approved a grant for the project’s feasibility study, with no financial liability on KPT or the federal and Sindh governments.

According to the document, the feasibility study has commenced and is to be completed within eight months. KPT is also coordinating with relevant stakeholders, including PICT, the National Highway Authority and the Sindh government, to identify a suitable way forward for addressing traffic congestion and port connectivity issues.

Further processing and resubmission of the project is to take place in light of the CDWP decision and the outcome of the feasibility study, while a response/compliance with the CDWP directions is still awaited, according to the document.

Credit: INP-WealthPk