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Gulf tensions open transshipment windfall for Karachi Port

May 20, 2026

By Ayesha Saba

Escalating Gulf tensions and fears of disruption in the Strait of Hormuz shipping routes have created new transshipment opportunities for Pakistan, prompting the Karachi Port Trust (KPT) to accelerate capacity enhancement measures.

According to an official document available with Wealth Pakistan, the KPT has launched a series of operational and infrastructure initiatives to handle the expected surge in transshipment volumes and improve terminal efficiency. Since March 1, 2026, the port has received additional transshipment traffic, handling around 13,175 TEUs of incremental volume.

The port authority has identified and developed dedicated areas within the port to accommodate increased cargo-handling activity. Efforts are underway to enhance terminal yard capacity by creating additional operational space and relocating empty containers outside terminal areas to optimize existing infrastructure for transshipment operations.

At the same time, the Karachi Port Trust has expanded engagement with off-dock terminal operators located near the port to ease pressure on on-dock facilities. As part of these efforts, the Federal Board of Revenue (FBR) has amended the existing rules through a Statutory Regulatory Order (SRO), allowing transshipment cargo to be shifted to off-dock terminals.

The port authority is also pursuing the removal of auctionable and long-pending containers occupying terminal space. Additional areas have been offered to the Pakistan Customs and the FBR for shifting stuck-up containers to designated off-dock terminals in a bid to reduce congestion and maximize yard utilization.

Furthermore, the Pakistan Customs has authorized terminal operators to auction off unmanifested board sweeping cargo and ship-borne scrap under a newly issued SRO. The reserve prices for such cargo have been finalized, while the auction process has already commenced through terminal operators, including Karachi Gateway Terminal Multipurpose (Private) Limited.

Despite rising cargo activity, officials maintain that export operations remain stable, with terminal yard occupancy managed efficiently and no major backlog or congestion reported at the port.

Credit: INP-WealthPk