Pakistan To Ink $2 Billion Deal With European Shippers

Pakistan is poised to finalize a $2 billion investment agreement with a European shipping firm by October, as announced by Maritime Affairs Minister Qaiser Ahmed Sheikh. This follows a visit from AP Moller–Maersk’s CEO Keith Svendsen, who met with Pakistani officials to discuss opportunities in the maritime sector.

Minister Sheikh stated that the European company intends to invest in logistics and infrastructure at the Karachi Port Trust (KPT). “A prominent European firm has expressed interest in investing $2 billion in Karachi Port Trust,” Sheikh said, without revealing the company’s name. “The memorandum of understanding is expected to be signed by October.”

Read more: Largest Cargo Ship In The World Is Expected To Dock At Karachi Port Today

The European company also plans to initiate a shipbreaking project in Pakistan, intending to dismantle 750 ships and provide training for local youth.

Earlier in the month, Sheikh mentioned that Danish shipping giant Maersk was interested in investing in a terminal and related infrastructure in Pakistan. “We had very productive discussions, and they are eager to submit a proposal soon,” he said on May 7. “They want to manage a terminal in an area with sufficient sea depth for large ships.”

Maersk, a major logistics and supply-chain provider in Pakistan, holds about 20 percent of the market share in containerized import-export activities. In January, the company announced new smart logistics and warehouse facilities in China, Norway, and Pakistan, including a 27-acre logistics hub in Port Qasim, Karachi, encompassing over 650,000 square feet of warehouse space.

Additionally, Pakistan has signed an agreement with Abu Dhabi Ports Group, which is investing approximately $395 million to develop a container and cargo terminal under a government-to-government (G2G) agreement between the UAE and Pakistan.