Pakistan has introduced a new transhipment incentive package aimed at lowering cargo handling costs, attracting more regional shipping traffic, and strengthening the country’s position as a leading maritime trade hub.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the initiative on Wednesday, describing it as a major step towards enhancing the competitiveness of Pakistan’s ports.
According to an official statement, the package has been jointly launched by the Karachi Port Trust (KPT), the Port Qasim Authority (PQA), and container terminal operators at both ports.
The incentives include reductions in wet charges, wharfage fees, storage costs, and terminal handling charges for containerised, bulk, and break-bulk transhipment cargo.
Officials believe the initiative will make Pakistani ports more attractive to international shipping lines while increasing regional trade activity.
Performance-Based Concessions Introduced for Shipping Lines
The new transhipment incentive package introduces a performance-based concession structure designed to encourage higher volumes of transhipment cargo through Pakistani ports.
Under the policy, vessels carrying between 5% and 10% transhipment cargo will receive a 20% concession on port wet charges.
Ships transporting between 11% and 25% transhipment cargo will qualify for a 30% discount, while vessels carrying between 26% and 50% cargo will receive a 50% concession.
Vessels carrying between 50% and 90% transhipment cargo will be eligible for a 70% reduction, provided container ships carry at least 2,000 twenty-foot equivalent units (TEUs).
Meanwhile, ships carrying between 90% and 100% transhipment cargo will receive an 80% concession, subject to a minimum cargo volume of 3,500 TEUs.
Government officials said the incentives are expected to reduce operational costs and encourage global shipping companies to route more cargo through Pakistan.
Karachi Port and Port Qasim Offer Additional Benefits
The Karachi Port Trust has also announced additional incentives under the new package.
According to the details, KPT will offer wharfage concessions ranging from 20% to 80%, depending on the percentage of transhipment cargo carried by each vessel.
Shipping companies will also receive 14 days of free storage at port terminals and 30 days of free storage at the TPX cargo facility under the responsibility of shipping agents.
The Port Qasim Authority has introduced an even broader incentive package by offering a 100% concession on wharfage charges along with seven days of free terminal storage.
The storage period may be extended to up to 21 days to facilitate cargo movement under the supervision of shipping agents.
Officials expect these incentives to improve port efficiency, reduce cargo delays, and strengthen Pakistan’s position within international shipping networks.
Container Terminal Operators Reduce Handling Charges
Pakistan’s four major container terminals have also joined the initiative by reducing terminal handling charges.
The participating facilities include the Karachi International Container Terminal (KICT), South Asia Pakistan Terminals (SAPTL), Karachi Gateway Terminal Limited (KGTL), and the Qasim International Container Terminal (QICT).
The terminals have introduced a 10% concession for vessels carrying between 5% and 10% transhipment cargo, while ships carrying between 11% and 25% cargo will receive a 20% discount.
Cargo volumes exceeding 25% of a vessel’s total manifest will qualify for concessions of up to 25%.
The incentives apply to both 20-foot and 40-foot containers, providing significant cost savings for shipping companies operating through Pakistan.
New Policy to Replace Earlier Regulations
The maritime affairs minister said the new framework will replace all previous concession notifications and statutory regulatory orders relating to transhipment operations.
He added that the unified system would establish a more transparent and efficient mechanism for cargo handling at both Karachi Port and Port Qasim.
Industry experts believe the initiative could increase trade volumes, improve port efficiency, and attract fresh investment into Pakistan’s maritime sector.
Analysts also noted that lower costs and streamlined procedures could enhance Pakistan’s role as a strategic transit hub linking South Asia, Central Asia, and the Middle East.