Afghanistan Signs Framework Agreement with DP World to Modernize Hairatan and Torkham Border Gates
Afghanistan Signs Framework Agreement with DP World to Modernize Hairatan and Torkham Border Gates
Afghanistan is taking a significant step with DP World to modernize its Hairatan and Torkham border gates with the goal of strengthening border trade and regional logistics integration. According to statements from the Afghan government, an investment term sheet was signed between the Afghanistan Ministry of Finance and DP World. The document was signed during a ceremony held on December 7 in Kabul at the office of the Deputy Prime Minister for Economic Affairs. The process was led by Mufti Abdullah Azam, Deputy Prime Minister for Economic Affairs.
Officials noted that the signed document serves as a framework leading to binding agreements and aims to implement foreign investment and operational modernization projects in subsequent phases. The framework's ultimate objective is defined as transforming Afghanistan's commercial border gates into logistics centers that comply with international standards, are technology-focused, and have high capacity.
Two-Phase Modernization Plan
According to the government summary, the project is planned in two phases.
Phase One covers the Hairatan border port located in northern Afghanistan. Hairatan is considered Afghanistan's most critical trade gateway to Central Asia due to its direct connection to the Uzbek railway network. At this stage, Hairatan will be equipped with:
modern cargo-handling equipment,
upgraded yard infrastructure,
digital customs and gate operation systems,
advanced inspection and control technologies
are targeted for deployment.
Phase Two includes the Torkham border port located in Nangarhar province. Torkham serves as Afghanistan's busiest land border crossing with Pakistan and handles a significant portion of the country's import–export volume. The modernization at Torkham aims particularly to manage high-volume trade more rapidly and predictably.
Logistics Corridors and Economic Zones Connection
Afghan officials are positioning the framework agreement with DP World not merely as an investment in two border gates, but as part of a broader logistics corridors and economic zones strategy. The modernization of Hairatan and Torkham is viewed as critical for Afghanistan to:
strengthen its role as a transit country in Central Asia–South Asia trade,
achieve time and cost reductions in customs procedures,
become more integrated into regional supply chains
in these respects.
Result of Long-Term Negotiations
The signed framework is actually the outcome of negotiations that have been ongoing since 2022. Afghanistan's Economic Commission formally authorized the negotiation of an MoU with DP World in 2022. Since then, the parties have maintained technical and institutional contacts. The term sheet signed on December 7 is regarded as the most concrete output of this process.
DP World's Central Asia Strategy
For DP World, this framework in Afghanistan represents a new link in the company's investments in Central Asia and its surroundings. The company recently signed a joint venture agreement worth approximately 288 million USD with Tashkent Invest to build a multimodal logistics terminal near Tashkent. The Hairatan and Torkham projects in Afghanistan are viewed as the southern extension of this network.
Should the framework agreement in Afghanistan be transformed into binding agreements following technical studies, DP World is expected to play an active role in:
operational expertise,
terminal operations know-how,
staff training and digital systems integration
areas. In turn, Afghan authorities are expected to carry out regulatory reform and customs modernisation processes.
Uncertainties and Open Issues
At this stage, information disclosed to the public does not include:
investment amount,
concession duration,
construction and commissioning timeline
These elements are expected to be clarified in binding agreements to be signed in subsequent periods.
General Assessment
Afghanistan's investment framework signed with DP World for Hairatan and Torkham border gates stands out as an important step toward the country's regional logistics integration objectives. If implemented, the project could contribute to Afghanistan achieving efficiency, transparency, and capacity increases in border trade. At the same time, DP World is expected to further strengthen its growing logistics network along the Central Asia–South Asia axis.
Key Points:
Afghanistan's Ministry of Finance signed an investment framework with DP World.
The project covers Hairatan and Torkham border gates.
Hairatan is a strategic transit point connected to the Uzbek railway network.
Torkham is Afghanistan–Pakistan's busiest border gate.
The framework paves the way for binding agreements and foreign investment.
Investment amount and timeline have not yet been disclosed.
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News Link: https://en.portnews.ru/news/385489/
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Author: SedatOnat.com
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