Pakistan approves bulk, vehicle transshipment to tap shifting regional trade routes

KARACHI: Pakistan has approved handling of bulk cargo and vehicle shipments under transshipment arrangements for the first time, in a move aimed at positioning the country as a regional logistics hub amid shifting Middle East trade routes, the maritime ministry said on Thursday.

The decision comes as the conflict involving the United States, Israel and Iran has disrupted traditional shipping flows through the Gulf, particularly around the Strait of Hormuz, prompting shipping companies to explore alternative routes and ports.

The approvals were made following recommendations of a high-level committee formed by Prime Minister Shehbaz Sharif and led by Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, according to an official statement.

“These strategic decisions mark a significant step toward positioning Pakistan as a competitive and resilient transshipment hub in the region,” the ministry said.

Under the new framework, authorities will allow handling of bulk and break-bulk cargo, including commodities such as grains, coal and minerals, under transshipment arrangements, a move expected to boost port throughput and attract additional shipping lines.

The government has also approved specialised Roll-on/Roll-off (Ro-Ro) operations, enabling the transshipment of vehicles including cars and SUVs through Pakistani ports.

In addition, authorities have cleared the handling of less-than-container-load (LCL) cargo, allowing consolidation and redistribution of smaller consignments, a step aimed at increasing efficiency and attracting global freight forwarders.

The ministry said the measures come at a time when regional trade routes are being reshaped by geopolitical and security challenges, creating an opportunity for Pakistan to expand its role in global logistics.

Officials said the initiative could help increase port revenues, generate foreign exchange earnings and create jobs in the logistics sector, while strengthening Pakistan’s integration into global supply chains.

The government also aims to use the framework to facilitate transit trade for landlocked Central Asian countries and reduce reliance on competing regional hubs, the statement added.