Pakistan’s Karachi Gateway Terminal Limited (KGTL) is planning a major expansion, with up to $100 million in fresh investment over the next five years to capture cargo diverted by the Iran war and strengthen Karachi’s role as a regional shipping hub. The move is aimed at lowering freight costs, improving cargo handling capacity and building a fuller logistics solution around port, rail and inland storage infrastructure.
KGTL’s expansion plan
KGTL says the next phase will focus on expanding its container terminal, increasing yard capacity and adding larger ship and yard cranes. It also plans dedicated bulk-export infrastructure, including silos, warehouses and automated conveying systems, to handle rising volumes more efficiently.
The company has already completed a $60 million dredging project at Karachi Port, which is expected to allow bulk vessels of up to 120,000 metric tons to berth. That upgrade is central to KGTL’s ambition to speed up cargo handling and improve the port’s competitiveness.
Rail-linked logistics push
Beyond the port itself, KGTL is also examining investment in rail freight assets such as locomotives, rolling stock and storage hubs near agricultural belts. The aim is to move commodities like corn and rice more competitively from inland production centres to export terminals.
Chief Executive Khurram Aziz Khan said the company wants to offer an end-to-end freight solution rather than rely only on port-side handling. That includes building the capacity to run its own freight trains and link port operations more tightly with hinterland cargo flows.
Iran war opens opportunity
The Iran conflict has created an unusual opening for Pakistan, as some cargo flows have been rerouted through Karachi for onward shipment. KGTL sees this as a chance to establish Pakistan as a transshipment point, a role the country has not historically played on a large scale.
Khan said the conflict has created a genuine window for Pakistan to attract transshipment volume, but the opportunity will depend on whether the country can offer speed, reliability and lower logistics costs. In other words, the port can gain cargo only if the inland transport chain keeps up.
Capacity and food security
KGTL’s planned silos, with annual capacity of 8.5 million tons, are intended to support clean bulk cargo handling and contribute to national food security. The company expects faster vessel turnaround, especially for large bulk ships, with handling time for a 60,000-ton vessel targeted to fall from 12–15 days to around 2.5–3 days.
That is a meaningful efficiency gain, but the company has also acknowledged that road and rail bottlenecks remain a challenge. For Karachi to become a lasting regional shipping hub, the port upgrade will need matching improvements in inland connectivity.
