Karachi: A $3 billion plan by Hong Kong-based Hutchison Ports to expand container terminals in Karachi has hit a wall. The Hutchison Ports Pakistan investment stalled this week as officials flagged serious regulatory and contractual obstacles standing in the way of progress.
The company wants to grow operations at two major terminals — the South Asia Pakistan Terminal (SAPT) and the Karachi International Container Terminal (KICT). It also plans to build new logistics facilities to help Pakistan become a key trade hub for South Asia, Central Asia and the Middle East.
The project picked up speed after Hutchison Ports CEO Eric Ip met Prime Minister Shehbaz Sharif in May 2025. Following that meeting, the company raised its investment offer from $1 billion to $3 billion.
But things have slowed down since then.
One major problem involves a concession agreement with Karachi Gateway Container Terminal (KGTL), run by UAE-based AD Ports Group. Under that deal, no new terminal can be built until Karachi’s ports reach a four million container handling level.
Another hurdle comes from Pakistan’s Public Procurement Regulatory Authority (PPRA). Officials at the Ministry of Maritime Affairs told the company that PPRA rules require a public tender before the project can move forward.
Neither the Maritime Affairs Ministry spokesperson nor the KGTL CEO responded to requests for comment.
Under the current proposal, about $1.8 billion would be invested over the next five to seven years. The rest would cover long-term upgrades and expansion.
Plans include a logistics park near SAPT with warehousing, freight stations, distribution centers and bonded zones. Both SAPT and KICT would also get expanded berths and yard space.
Officials from Hutchison Ports warned that Karachi’s main terminals are already running at up to 80 percent capacity. Without new investment, Pakistan could miss out on major trade opportunities — especially if Afghan transit trade restarts, Central Asian trade grows and links with Iran recover.
The Pakistani government has been working to attract more investment into its ports sector. It recently announced tax cuts on port and terminal services and froze a planned tariff increase at Karachi Port.
Comments are closed, but trackbacks and pingbacks are open.