New concessions on port charges, storage and terminal handling aim to position Karachi Port and Port Qasim as regional transshipment hubs.
ISLAMABAD: Pakistan has unveiled a unified transshipment incentive package offering substantial concessions at Karachi Port and Port Qasim to reduce cargo handling costs, attract regional shipping traffic and strengthen the country’s position as a competitive transshipment hub.
The package, announced on Wednesday by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, has been jointly introduced by the Karachi Port Trust (KPT), the Port Qasim Authority (PQA) and their container terminal operators.
The new framework provides significant reductions in port wet charges, wharfage, storage fees and terminal handling charges (THC) for containerised, bulk and break-bulk transshipment cargo.
Performance-Based Port Charge Concessions
The minister said the incentive package introduces a slab-based concession on Port Wet Charges, with discounts linked to the proportion of transshipment cargo carried by a vessel.
| Transshipment Cargo on Vessel | Concession on Port Wet Charges |
| 5–10% | 20% |
| 11–25% | 30% |
| 26–50% | 50% |
| 50–90%* | 70% |
| 90–100%** | 80% |
*Minimum of 2,000 TEUs for container vessels.
**Minimum of 3,500 TEUs for container vessels.
The government believes the performance-based structure will encourage shipping lines to route larger volumes of transshipment cargo through Pakistani ports.
Wharfage and Storage Incentives
Under the new package, Karachi Port Trust will provide:
• Wharfage concessions ranging from 20% to 80%.
• Fourteen days of free storage at port terminals.
• Thirty days of free storage at the TPX cargo area under the responsibility of the shipping agent.
The higher concession tiers will require minimum cargo volumes:
• 70% concession for vessels carrying at least 2,000 TEUs.
• 80% concession for vessels carrying at least 3,500 TEUs.
Meanwhile, the Port Qasim Authority will offer:
• A 100% wharfage concession.
• Seven days of free terminal storage.
• Extension of storage for up to 21 days under the responsibility of the shipping agent.
Container Terminals Reduce Handling Charges
Pakistan’s four major container terminals have also agreed to reduce Terminal Handling Charges for transshipment cargo.
The participating terminals include:
• Karachi International Container Terminal (KICT)
• South Asia Pakistan Terminals (SAPTL)
• Karachi Gateway Terminal Limited (KGTL)
• Qasim International Container Terminal (QICT)
The revised discounts are:
| Share of Transshipment Cargo | THC Discount |
| 5–10% | 10% |
| 11–25% | 20% |
| Above 25% | 25% |
The concessions apply to both 20-foot and 40-foot containers, lowering handling costs for shipping lines operating through Pakistani ports.
Unified National Framework
Muhammad Junaid Anwar Chaudhry said the new policy replaces previous transshipment concession notifications and Statutory Regulatory Orders (SROs) with a single, transparent and performance-based framework applicable at both Karachi Port and Port Qasim.
According to the minister, the unified regime is intended to simplify port procedures, enhance operational efficiency and improve Pakistan’s competitiveness in the regional maritime sector.
Expected Economic Impact
Chairman Karachi Port Trust Shahid Ahmed said the incentive package is expected to deliver multiple benefits, including:
• Lower transshipment costs for shipping lines.
• Attraction of additional mainline shipping services.
• Faster vessel turnaround times.
• Higher regional cargo throughput.
• Stronger positioning of Pakistan as a regional maritime and logistics hub.
The unified transshipment incentive package forms part of the government’s broader strategy to modernise Pakistan’s port sector, improve regional connectivity and capture a larger share of transshipment traffic moving through the Arabian Sea.