ISLAMABAD: China’s Shandong Xinxu Group has shown keen interest in Pakistan’s ambitious Sea-to-Steel initiative at Port Qasim in Karachi, agreeing to prepare and submit a detailed unsolicited feasibility study for the proposed Integrated Maritime Industrial Complex (IMIC). This development marks a significant step forward in bilateral economic cooperation under the China-Pakistan Economic Corridor framework, as the project aims to revitalise the country’s dormant steel sector and enhance maritime industrial capabilities through sustainable integration of ship recycling and steel production.
The Sea-to-Steel initiative, also referred to as the Steel-to-Green Sea project, was unveiled by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry in November 2025 during an event at Port Qasim Authority. It seeks to create a green maritime-industrial corridor that connects shipbreaking activities directly with domestic steel manufacturing, thereby reducing Pakistan’s heavy reliance on imported raw materials and finished steel products while promoting environmental sustainability in industrial operations.
Discussions between Pakistani authorities and the Chinese delegation gained momentum in December 2025 when a five-member team from Shandong Xinxu Group, led by Chairman Hou Jianxin, met the maritime minister to explore the IMIC proposal. The project is estimated to involve investments ranging from €1 billion to €2 billion, equivalent to approximately $1.1 billion to $2.2 billion, focusing on transforming Port Qasim into a hub for heavy industries linked to maritime activities.
Central to the IMIC are three core components designed to maximise economic synergies. These include the revival of the long-inactive Iron Ore and Coal Berth jetty, popularly known as the steel jetty, which has the capacity to handle vessels of 55,000 to 75,000 deadweight tons and was previously connected to Pakistan Steel Mills. Reviving this infrastructure is expected to facilitate efficient handling of bulk commodities essential for steel production and related industries.
The second pillar involves establishing advanced shipbuilding, ship repair, and ship recycling facilities at the port site. Pakistan currently lacks large-scale modern shipbreaking yards compliant with international environmental standards, and this component aims to position Port Qasim as a regional centre for green ship dismantling, generating employment and capturing value from the global ship recycling market while minimising ecological impact through modern technologies.
The third element focuses on constructing a state-of-the-art steel mill integrated with port operations to ensure seamless logistics from raw material import to finished product export. This integration is anticipated to lower production costs, enhance competitiveness of Pakistani steel in domestic and international markets, and contribute to national self-sufficiency in a sector that has faced chronic challenges due to energy shortages and outdated facilities.
The initiative aligns with broader government efforts to modernise Port Qasim, which was recently recognised for its environmentally friendly infrastructure upgrades. By linking maritime logistics directly to heavy manufacturing, the project promises to create a continuous value chain that boosts export potential, attracts foreign direct investment, and supports job creation in thousands across skilled and unskilled categories over the coming decades.
Experts view the involvement of Shandong Xinxu Group as strategically important given China’s expertise in large-scale industrial projects and shipbuilding. The firm’s willingness to undertake an unsolicited comprehensive feasibility study demonstrates confidence in the project’s viability and could accelerate implementation once approvals are secured, potentially paving the way for formal agreements under bilateral frameworks.
Pakistan’s maritime sector has shown robust performance in recent years, posting record profits and implementing reforms to enhance efficiency at major ports. The Sea-to-Steel project builds on these gains by targeting industrial revival, particularly the revival of Pakistan Steel Mills, which has remained largely non-operational for years despite its strategic importance to the national economy.
Successful execution of the IMIC could yield substantial economic dividends, including reduced import bills for steel, foreign exchange savings, and strengthened industrial base amid global supply chain shifts. It also reinforces Pakistan’s position as a key node in regional trade networks, leveraging its deep-water port advantages for transhipment and value-added manufacturing.
The latest commitment from Shandong Xinxu Group, announced in early 2026, underscores growing Chinese interest in Pakistan’s industrial corridors beyond traditional energy and infrastructure domains. As the feasibility study progresses, stakeholders anticipate further details on timelines, environmental safeguards, and financing mechanisms to ensure the project’s alignment with sustainable development goals.