Hong Kong's Hutchison Ports to invest $1 billion in Pakistan's port infrastructure

Hutchison Ports, a subsidiary of the Hong Kong-based CK Hutchison Holdings Limited, has announced plans to invest $1 billion in Pakistan to enhance its port infrastructure, according to a statement from Pakistan's finance ministry.

The announcement followed a meeting between a Hutchison Ports delegation, led by Andy Tsoi, the company’s Managing Director for the Middle East & Africa, and Pakistan's Finance Minister, Muhammad Aurangzeb. The delegation briefed the minister on Hutchison Ports' 25-year presence in Pakistan.

Hutchison Ports operates two terminals in Pakistan, HPKICT and HPSAPT, and has contributed over Rs225 billion ($804 million) in government revenues while providing employment to 5,000 workers.

During the meeting, the delegation presented its investment plan, which aims to modernize existing terminals, improve operational efficiency, boost logistics connectivity, and increase automation. The proposed investment includes infrastructure upgrades, road improvements for more efficient cargo movement, the transformation of HPKICT into a state-of-the-art automated terminal, and the development of a 52-hectare logistics park to enhance trade connectivity.

According to the finance ministry, the investment is expected to generate at least $4 billion in revenue over the next 25 years through royalties, rent, and taxes.

The automation enhancements will include remote-controlled quay cranes, electric trucks, and digitalized gate operations, along with training programs for maritime professionals in port operations, management, and AI applications.

Minister Aurangzeb praised Hutchison Ports for its commitment to Pakistan’s maritime sector and acknowledged its significant role in enhancing trade and economic activity. He assured the delegation of the government’s continued support for strategic investments that contribute to the nation’s economic growth and infrastructure development.

This development comes as Pakistan seeks to boost trade and forge international partnerships to expand its maritime activities. On January 22, South Korea’s HMM launched the India North Europe Express (INX) weekly shipping service, offering direct access from Pakistan to Europe. The service, in partnership with Ocean Network Express (ONE) and Pakistan’s United Marine Agencies (UMA), aims to ensure timely and efficient delivery of Pakistani goods to European ports.

Earlier in January, DP World, in collaboration with Pakistan’s National Logistics Corporation, launched a feeder service to transport shipping containers between Dubai and Karachi. Additionally, DP World and Pakistani officials have finalized terms for a freight corridor project linking Karachi Port with the Pipri Marshalling Yard in southern Pakistan.

These initiatives are part of Pakistan’s broader efforts to revitalize its economy following its close call with a default in June 2023. Last year, the country secured a new $7 billion loan from the International Monetary Fund (IMF) and has since been pursuing trade and investment opportunities to strengthen its economy.