Central Asia and Pakistani Seaports: Opportunities

Central Asia and Pakistani Seaports: Opportunities

Amer Zafar Durrani, July 27, 2005

Executive summary

Pakistan’s seaports – chiefly Karachi Port (KPT) and Port Qasim (PQA) – are the natural maritime gateways for Afghanistan and the five land‑locked Central Asian Republics (CARs). Over the past three fiscal years (FY 2021‑22 → FY 2024‑25) the value and tonnage of transit and trans‑shipment traffic have been volatile, mirroring regional security conditions, Pakistan’s anti‑smuggling crackdown and the global freight cycle. Karachi still has ample spare capacity (2–3 M TEU of headroom) and its tariffs remain regionally competitive, which positions it to capture a larger share of Eurasian north‑south flows once rail‑road links beyond Afghanistan become reliable.

Transit and trans‑shipment volumes (last three years)

Destination	FY 2021‑22*	FY 2022‑23	FY 2023‑24**	Trend	Notes
Afghanistan (under APTTA)	US $ 4.02 bn	US $ 6.71 bn ― +67 %	US $ 2.89 bn ― ‑59 %	Sharp reversal after Sept‑23 border & foreign‑exchange restrictions	Value of goods manifested for Kabul, not duties‑paid imports.
All CARs (aggregate)	~ US $ 220 m	US $ 250 m†	US $ 181 m (Jul‑Dec 24)	Gradual growth, then 17 % slide in 1H FY25	Traffic split 55 % Uzbekistan, 20 % Kazakhstan, 13 % Tajikistan, balance TK and KG.

* No single government source disaggregates CAR transit; the FY 2021‑22 estimate uses PBS country‑wise export data plus adjustment for re‑exports.

** Pakistan’s fiscal year (1 Jul – 30 Jun). FY 2024‑25 figures are year‑to‑date.

*** Back‑cast from nine‑month Kazakhstan figure of US $ 72.4 m with proportional scaling to other CARs.

† Derived from Pakistani Ministry of Commerce monthly trade statements and TDAP briefings.

Key take‑aways

• Afghanistan still dominates Pakistan’s transit business, but the clamp‑down on smuggling cut volumes by half in FY 24.
• Central Asian volumes are small but resilient; rail‑cum‑road pilot consignments (PAKAFUZ and TIR sealed trucks) moved 1,350 TEU in 2024, up from 420 TEU in 2022 (News Central Asia, IPRI).
• Once the Termez–Mazar‑i‑Sharif–Torkham railway is finished (target 2027) freight could jump to 4–5 Mt p.a., according to Uzbekistan–Pakistan feasibility papers.

Potential of Karachi as a Central Asian gateway

Indicator	Latest figure	Capacity after committed upgrades
Container throughput (FY 2024‑25)	2.65 M TEU	> 5 M TEU once SAPT & KGTL phases 2–3 are online (2027)
Bulk and general cargo	54 Mt handled FY 2024‑25	Quay‑wall extensions add 25 Mt under AD Ports 25‑yr concession
Rail connectivity	Daily 40‑wagon block train to Peshawar; pilot rail service to Chaman	Planned ML‑1 double‑tracking will cut Karachi‑Peshawar transit from 50 h to 28 h (financing secured 2024)
Road corridors	N‑5, M‑1/2 motorways & CPEC Western Route; 45‑hr truck transit Karachi‑Torkham, 40 hr to -Chaman	Peshawar–Kabul–Termez (PAKAFUZ) railway + TIR trucks expected to slash Karachi–Tashkent to 7 days door‑to‑door

Assessment

At current berth occupancy (≈ 55 %) Karachi could treble CAR throughput without new quays. Hardware is no longer the bottleneck; soft‑infrastructure (single‑window clearance, bonded trucking guarantees, and political stability in Afghanistan) will determine utilization.

Port charges applicable to transit / trans‑shipment

Charge type (Karachi and Port Qasim)	Typical rate (May 2024 tariff)	Concession/relief for transit cargo
Container landing/handling (20’/40’) – general cargo	PKR 26,050 / 36,720 (≈ US$ 93 / 131) at QICT	Same as domestic import; no surcharge.
ATT / AID Afghan container (20’/40’)	PKR 13,600 / 20,800 (≈ US$ 49 / 75) – 48 % rebate vs ordinary boxes	Plus 10 days demurrage‑free window.
Port dues – foreign vessel	US$ 0.39 /GRT (KPT) after July 2024 fuel‑linked revision	No rebate.
Wharfage – bulk (grain/fertilizer)	PKR 80–110 / t (KPT schedule)	25 % refund if consignment is bonded for reexport within 30 days.
Storage/demurrage after free time	20’ box : PKR 2,400 per day first 5 days (≈ US$ 8.6)	Same, but Afghan transit allowed 10 days free.

Assessment

Compared with Bandar Abbas and Jebel Ali, Karachi’s container handling cost for transit boxes is 18–25 % lower, offsetting slightly longer trucking distances to Central Asia.

Could Pakistan allocate port land to Kyrgyzstan (as Iran did at Bandar Abbas)?

• Legal mechanism – The Karachi Port Trust Act (Section 12‑B) and the 2021 Public-Private Partnership Ordinance allow long‑term concessions or exclusive zones to foreign governments / SOEs with Federal Cabinet approval. Recent precedents include the 25‑ and 50‑year concessions signed with AD Ports Group and CK Hutchison.
• Available sites – East‑Wharf berths 18‑20 and parts of the back-up yard vacated after SAPT phase 1 are earmarked for third‑party logistics parks in the port master plan (2023). Approximately 20 ha could be fenced as a Kyrgyz bonded logistics enclave without impeding port expansion.
• Diplomatic context – Islamabad–Bishkek Inter-Governmental Commission (Nov 2023) included a Kyrgyz request for “dedicated terminal space” but talks are at concept stage.
• Feasibility – Technically straightforward; politically acceptable if structured as a commercial lease (avoiding sovereignty sensitivities). Unlike Iran’s freehold grant at Bandar Abbas, Pakistan would follow the “design‑build‑operate‑transfer” template now standard at KPT. Customs rulings already recognize “export processing zone” status, so Kyrgyz freight could enter duty-free and move inland under the TIR carnets.

Conclusion

Pakistan can replicate Bandar Abbas‑style access for Kyrgyzstan; success hinges on traffic guarantees (minimum 0.2 Mt p.a. is the break‑even volume KPT quotes) and harmonizing quarantine/security procedures.

Major logistics providers serving the Pakistan–Central Asia corridor

This list is based on desk research only and should be verified if required.

Company	Core service on CAR lane
National Logistics Corporation (NLC) – Pakistan Army‑backed multimodal fleet of 5,000 trucks; pioneer of TIR runs from Kashgar to Kabul and Karachi	HQ near Mai Kolachi, bonded yards at West‑Wharf
Spinzer Logistics & Shipping Line – End‑to‑end forwarding, Afghan border clearance, PAKAFUZ pilot consignments	Keamari (M‑1 Zahra Mall)
CEVA Logistics Pakistan – Global 3PL; JV with local partner; runs weekly Kashgar‑Karachi TIR convoy	Representation office, Port Qasim
DB Schenker Pakistan – Rail‑road sea‑air products for CIS; leverages Istanbul‑Almaty block train and Karachi feeder	Clifton
Agility Pakistan / DSV – 700‑person operation; warehousing in Karachi, Islamabad, Lahore; offers project cargo to Uzbekistan & Kazakhstan	Korangi
Hutchison Ports Pakistan (SAPT) – Operates Karachi deep‑water terminal; provides through‑billing to Central Asia via PAK‑Uzbekistan rail corridor	SAPT berth 3‑6
Karachi Gateway Terminal Ltd (KGTL) – New AD Ports/Kaheel JV; multipurpose quay with Central‑Asia logistics desk	East‑Wharf berths 6‑10
TCS Logistics & Express – Dedicated B2B road & air freight; has flown charter freighters Karachi‑Tashkent for electronics shipments
Tristar Transport (Agility affiliate) – Bulk liquids trucking Karachi‑Spin Boldak‑Termez; ISO‑tank depot inside Port Qasim free zone.
SEATIME Container Line / GreenPak Shipping – NVOCC with regular SOC box repositioning for CAR clients

Note: This article-report was prepared July 2025. All monetary figures in current US dollars unless noted.

References

A. Afghan transit‑trade statistics and trends

1. “Afghan Transit Trade falls 84 pc amid anti‑smuggling efforts” – The Nation, 23 Sep 2024. (The Nation)
2. “Pak‑Afghan Transit Trade Plunges by 59 % in FY‑24” – ProPakistani, 27 Aug 2024. (ProPakistani)
3. “Pakistan’s Smuggling Squeeze” – Daily Times (op‑ed citing FBR data), 12 Jan 2024. (Daily Times)
4. “Navigating the Impacts of Afghan Transit Trade on Pakistan’s Economy” – PEconomist, 15 Feb 2024. (Peconomist)

B. Central‑Asian transit flows & trade

5. “Pakistan’s exports to Central Asia drop 17 % despite transit trade agreements” – Profit by Pakistan Today, 6 Feb 2025. (Profit by Pakistan Today)
6. Policy Brief: “Central Asian Trade, QTTA and the TIR Convention” – Islamabad Policy Research Institute, Nov 2024. (IPRI)

C. Karachi Port capacity & performance

7. “Karachi Port reports 23.43 % cargo‑handling surge in FY‑24” – PK Revenue, 9 Jul 2024. (Pkrevenue.com)
8. KPT Tonnage & TEU Dashboard (interactive data portal) – Karachi Port Trust, accessed 27 Jul 2025. (KPT)

D. Port charges & tariffs

9. QICT General Cargo Tariff – effective 1 Apr 2024 (official PDF, 3 pp). (DP World)
10. Statutory Notification SRO 522(I)/2023 – Revised KPT Port Dues (extract shows US$ 0.392 / GRT). (KPT)
11. “KPT raises port charges after two decades” – Dawn, 5 Jul 2023. (Dawn)

E. Concessions, master‑plan sites & expansion projects

12. “AD Ports to deepen the Karachi Gateway Terminal” – Dredging Today, 22 Jun 2023. (Dredging Today)
13. AD Ports Group press release: 50‑year concession for KGTL berths 6‑10 – 22 Jun 2023. (Adports Group)
14. “AD Ports & Kaheel secure second Karachi concession (berths 11‑17)” – The Maritime Standard, 3 Feb 2024. (The Maritime Standard)
15. MoU: AD Ports Group & Pakistan BOI on East‑Wharf industrial zone – 28 Feb 2025. (Adports Group)

F. Inland‑connectivity projects

16. Briefing Paper 05: “CPEC & ML‑1 Railway Project” – Pakistan Institute for Parliamentary Studies, Sep 2024. (PIPS)
17. “Pakistan, China to finance ML‑1 in phases” – ProPakistani, 23 Oct 2024. (ProPakistani)
18. “Trans‑Afghan railway expected to be completed by end‑2027” – Ariana News, 4 May 2024. (Ariana News)
19. “Uzbekistan’s deputy minister announces Trans‑Afghan railway timeline” – Daryo.uz, 11 May 2024. (Daryo.uz)
20. “Trans‑Afghan peace‑train pact puts trade over turmoil” – Asia Times, 22 Jul 2025. (Asia Times)

G. Comparative precedent at Bandar‑Abbas

21. “Iran to give Kyrgyzstan logistics site in Bandar Abbas Port” – Business Turkmenistan, 16 Dec 2021. (Business Turkmenistan Information Center)
22. “Iran ready to host neighbours’ independent port authorities in Bandar Abbas” – Iran Daily, 4 May 2025. (Iran Daily)

H. Kyrgyz‑Pak Inter‑Governmental Commission (IGC)

23. Government of Pakistan press release: 4th Kyrgyz‑Pakistan IGC (Bishkek, 10 Nov 2023) – Economic Affairs Division. (Education And Development)
24. “Pakistan, Kyrgyzstan underline need to strengthen bilateral cooperation” – DND News, 14 Nov 2023. (Dispatch news Desk)