Shandong Xinxu Plans Major Investment in Port Qasim Industrial Project
China’s Shandong Xinxu Group Corporation Ltd. is preparing to invest up to $1.34 billion in Pakistan’s integrated maritime industrial complex (IMIC) at Port Qasim, the country’s second-largest commercial port in Karachi. A senior official from Pakistan’s Ministry of Maritime Affairs told Arab News that the investment would modernize port infrastructure and establish shipbuilding, ship recycling, and steel production facilities, transforming Port Qasim into a regional industrial hub.
IMIC is a flagship initiative of the Pakistani government aimed at integrating maritime operations with industrial growth. The project includes upgrading Port Qasim’s infrastructure, building a green ship repair and recycling yard, establishing an integrated steel mill, and leveraging recycled steel to revive Pakistan Steel Mills (PSM), dormant since 2015. The plan is aligned with Pakistan’s Maritime Century (2047-2147) initiative, which envisions a $100 billion blue economy, AI-enabled industrial complexes, and 100% green digital ports.
According to the official, Shandong Xinxu plans to invest approximately $800 million in shipbuilding facilities and $540 million in complementary components of IMIC, contingent upon establishing a 300,000-ton furnace oil plant at the port. The company has been requested to submit a comprehensive feasibility study covering financial impacts, structural and hydrographic analyses, and risk evaluations. Once finalized, the project will significantly reduce Pakistan’s dependence on imported steel by integrating ship recycling with domestic steel production.
In November 2025, Prime Minister Shehbaz Sharif announced the establishment of Pakistan’s first green ship repair and recycling yard under IMIC, supporting sustainability and industrial modernization. The investment will also complement ongoing efforts to revive PSM, ensuring a continuous supply of steel from recycled ship materials.
Shandong Xinxu, a global manufacturer specializing in green batteries, nuclear power equipment, environmental solutions, and industrial technologies, has shown interest in leveraging Pakistan’s port infrastructure while contributing to the growth of the local industrial sector. The project is expected to stimulate foreign direct investment, create jobs, enhance export potential, and integrate Port Qasim into regional and international maritime trade networks.
IMIC is poised to be one of Pakistan’s largest maritime and industrial investments in recent years, setting a benchmark for heavy industry, logistics, and green technology adoption in the country.