With 20% of global trade under consistent risk through Hormuz, Pakistan is already receiving diverted cargo but lacks policy readiness to retain it. Turning geography into destiny needs the timely alignment of reforms to make the ports competitive.
Global shipping trade experiences frequent shifts during regional tensions that raise serious concerns about the viability of conventional marine routes. The maritime geography of Pakistan provides it with invaluable geostrategic value.
Its coastline runs along the Arabian Sea in proximity to the Strait of Hormuz, one of the most crucial choke points of global supply chains. Tensions in the Gulf region disrupt one-fifth of global energy and commercial shipping flow.
Pakistan’s ports always serve as a risk-free alternative for major transshipping hubs due to their relatively close location to conflict zones. Nonetheless, Pakistan can benefit from shifting global supply chains only if its ports function as risk-free key nodes in marine networks and maintain operational standards as per international benchmarks.
Pakistan’s port infrastructure comprises three ports, including Karachi Port, Port Qasim, and Gwadar Port. Each of these is characterised by distinct operational features.
Karachi Port is the country’s oldest and one of South Asia’s busiest deep-seaports. In recent Gulf conflicts, this port has observed a substantial increase in shipping activities.
Approximately 75% of the redirected cargo shipments are handled at Karachi Port. This volume is significantly higher than the total handling at the same port during the previous year.
This rerouting is beneficial in terms of revenue generation but is least likely to be long-term due to poor infrastructure, urban congestion, and the limited expansion capacity of Karachi Port.
Similarly, Port Qasim, the country’s premier industrial port, and Gwadar Port, a warm-water deep seaport in the Arabian Sea, are performing far below their huge potential.
Despite all these setbacks, Pakistan inherits ample advantages of cost saving in the form of human resources and its favourable geographic position
This indicates that, regardless of all the strategic advantages, Pakistan’s ports suffer from fundamental structural and operational issues.
Jebel Ali Port is one of the major coastal hubs in the region and is ranked among the top ten busiest ports in the world. It is famous for its huge shipping capacity, modern operations, uninterrupted logistics, easier connectivity and highly integrated free zones.
Likewise, Salalah Port, Oman, is a major transshipping hub offering a cost-effective and stress-free alternative to congested routes like the Strait of Hormuz.
Pakistan can emulate these port models to identify the lags and turn its fleeting marine advantage into sustained gains.
Contrary to Jebel Ali and Salalah, Pakistan’s ports, despite their potential, are operating far below the status of transshipping hubs in global networks.
They have limited physical infrastructure, underutilise their capacity, and are less efficient in the provision of port services.
For instance, the BOR in Karachi and Port Qasim is 45–50% and 43–67%, respectively, below the global optimal of 50–70% BOR.
The Port Liner Ship Connectivity Indices also reveal lower-level connectivity of Pakistan’s ports to global container shipping networks.
Similarly, seaport service efficiency is among the lowest in the world. The number of Ship-to-Shore (STS) cranes that enhance port throughput has remained only 5 to 6 per port to date.
The Container Port Performance Index (CPPI) is another critical point for global stakeholders. In this context, performance at Karachi Port has declined over time, whereas Port Qasim has shown a very slight improvement.
This indicates that maritime trade efficiency and vessel turnaround time at ports need improvement on a priority basis in Pakistan.
Besides these, the inconsistent turnaround time of vessels, weak transportation, and poor hinterland connectivity are major problems with Pakistan’s ports.
Comparison with major ports exposes that the suboptimal efficiency of Pakistan’s ports is not just operational but deeply rooted in its fundamental structure.
The success of Dubai Port was realised by its integrated ecosystem, technology-augmented services and modern infrastructure.
Similarly, Salalah Port, despite limited capacity, utilised its geographic location and evolved as an efficient transshipping hub.
Whereas Pakistan lacks these characteristics and operates as an independent cargo node.
Despite all these setbacks, Pakistan inherits ample advantages of cost saving in the form of human resources and its favourable geographic position.
It can make the most of redrawn trade networks by developing a broad policy framework and shifting its shores from congested gateways to global transshipping hubs.
For this, the policy must prioritise some vital steps. First, infrastructure modernisation and operational automation should be top priority to reduce turnaround time for vessels and make cargo operations efficient.
Revival of infrastructure should target container yard expansion, deepening existing berths, and the use of automated cargo services. These objectives may be realised better through optimal public-private partnerships.
Second, ports should be integrated with export processing and logistics zones following the Jebel Ali model.
For this, free trade and specialised industrial zones must be established, especially with Gwadar Port, to provide seamless interconnection of marine trade operations, including manufacturing, storage, handling, and export provisions.
Third, strategic partnerships should be made with major global carriers by providing them with incentives in terms of berthing rights, cargo volumes and subsidised port charges.
This will attract more carriers, having a multiplier effect from shipping lines at the ports.
Fourth, rationalisation of operational and procedural costs must be prioritised to attract diverting transshipments to Pakistan permanently.
Currently, the ports, despite being less efficient, have high operational costs for cargo procedures. Therefore, policy must focus on revenue generation beyond registration and port charges.
Lastly, specialised skill development and training programmes should be offered for youth to meet the demand of modern marine operational services.
It is time for Pakistan to realign its policy priorities and strategically leverage emerging conflicts to position itself as a regional trade hub, paving the way towards long-sought sustainable economic growth.