Chinese firm proposes €2 billion integrated maritime industrial complex at Port Qasim

China’s Shandong Xinxu Group has proposed a €1 billion to €2 billion Integrated Maritime Industrial Complex (IMIC) at Port Qasim, focusing on shipbuilding, shipbreaking, and steel production linked to port operations.

A five-member delegation led by Shandong Xinxu Group Chairman Hou Jianxin met Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry to discuss the proposed investment, which aims to strengthen Pakistan’s maritime and heavy industrial base.

According to officials, the proposed IMIC comprises three main components: revival of the Iron Ore and Coal Berth (IOCB), commonly known as the steel jetty; establishment of shipbuilding and shipbreaking facilities; and development of a steel mill integrated with port infrastructure.

The IOCB was originally built to handle bulk cargo such as iron ore and coal for Pakistan Steel Mills and can accommodate vessels between 55,000 and 75,000 deadweight tons. The jetty is linked to the steel mill through a dedicated conveyor system spanning several kilometres, connecting directly to stockyards and blast furnace areas.

During the meeting, the maritime minister welcomed the Chinese group’s interest and asked the delegation to submit an unsolicited proposal outlining the project’s scope, implementation plan, and feasibility. He said the proposal should include technical, financial, and environmental assessments, along with a clear development roadmap.

Following submission of the proposal, a joint committee comprising officials from the Ministry of Maritime Affairs and representatives of Shandong Xinxu Group, led by Additional Secretary Umar Zafar Sheikh, will review the plan.

The minister stressed that any future development must align with Pakistan’s industrial priorities, including job creation, value addition, and environmental sustainability.

The IMIC concept was first presented by the minister in November 2025 during an event hosted by the Port Qasim Authority in Karachi, where the port was recognised as the world’s ninth most improved container port. Branded as the “Steel-to-Green Sea” initiative, the proposal links ship recycling with domestic steel production to reduce import dependence and maximise the use of recyclable materials.

If approved, the project would mark one of the largest recent investments in Pakistan’s maritime and industrial sectors and could further position Port Qasim as a regional hub for heavy industry and logistics.