CK Hutchison Announces $1 Billion Pakistan Port Upgrade Plans
Hong Kong-based conglomerate CK Hutchison Holdings Limited announced plans to spend $1 billion to modernize its business in Pakistan. CK Hutchison’s ports division is looking to upgrade its existing Pakistan terminals to make them more efficient, automated, and better connected to logistics.
The investment will be used to automate the services at Hutchison Ports’ Karachi terminal in Pakistan’s southern city. The upgrade is likely to involve upgrading roads and parking facilities to ensure smoother movement of cargo.
While no definite timeframe has been set for investment, it should contribute at least $4 billion to revenue within 25 years. According to a Hutchison Ports delegation, the revenue contributions are through royalties, rent, and taxes.
Hutchison Ports has managed two major terminals in Pakistan for over 25 years and has already generated over Rs 225 billion ($805.01 million) in revenue for Pakistan’s government. The investment is made at a time when Pakistan is engaged in efforts to lure foreign investment to grow its economy further and add to its foreign reserves.
Ports are a key sector for infrastructure development to draw investment, the head of the World Bank’s investment arm has said.
