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Project Profile

Karachi-Pipri Freight Corridor (KPFC)
Project Information
Details
Sector
Transportation
Implementing Agency
Pakistan Railways, Government of Pakistan
Location
Karachi, Pakistan
Estimated Project Cost
PKR 62 billion (US$ 350 million)
Status
Under appraisal
Overview
The Project envisages construction of approx. 50-km dual track dedicated freight corridor from the port of Karachi to Pipri on Public Private Partnership (PPP) basis.

The Project aims to ease congestion at the Karachi Port Trust where cargo handling through containers, meant for Karachi and upcountry, is currently dominated by road transportation (through trucks).

The Project is expected to cater around 1 million containers (TEUs) per annum which is expected to further increase over the period of concession.

The Project is anticipated to fetch significant economic and environmental benefits in terms of vehicle operating costs & time savings, reduction in carbon emissions, job creation and spill over tax impact.
Salient Features
Implementation Modality The Project will be implemented using Project Finance structure whereby the private party will form a dedicated project company to implement and execute the Project over proposed concession of 32 years (which includes 2 years construction period).
Government Contributions
  • Land/ Right-of-Way (ROW)
  • Other than land/ ROW, GoP may not make any other financial contribution in the Project due to promising demand estimates of the Project
Government Return
  • Guaranteed revenue share (will be determined once the transaction structure is finalized)
  • Corporate taxes (will be determined once the transaction structure is finalized)
  • Project assets, at no cost, at the end of concession period.
Private Party Return
  • Right to collect revenues
  • Commercial development rights within the Project corridor, if any.
Contact:
 Head Projects
Phone: +92 51 921 1983-5
E-mail: m.danish@p3a.gov.pk 		Public Private Partnership Authority (P3A)
5th Floor, Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad, Pakistan
Phone: +92 51 921 1983-5

About Us

The Government of Pakistan has limited public sector funding available to cater to the country’s overall public infrastructure requirements and related services. To bridge this gap, the Government made a policy decision to tap private sector investments

Other Contacts

P3A Core Links

CONTACT US

Public Private Partnership Authority P3A, 501, 5th Floor, Evacuee Trust Complex, Agha Khan Road,F-5/1 Islamabad Pakistan
+ 92 51 9211983
+ 92 51 9211984
+ 92 51 9211985
Email info@p3a.gov.pk