PICT says assessing options amid end of concession agreement with KPT

Pakistan International Container Terminal (PICT), engaged in providing container terminal management services, said it is carefully assessing options amid expiry of the concession agreement with the Karachi Port Trust (KPT). The agreement ended on June 17.

The company, a subsidiary of ICTSI Mauritius Limited, stated this in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“The company wishes to clarify the concession agreement for berths 6 to 9 held by the company expired on June 17, 2023, and that the concession premises have been taken over by KPT on June 18, 2023.

“We further understand that KPT has already granted a new concession in respect of the same to Abu Dhabi Ports.

“Having said the above, our stakeholders are informed that while the concession agreement has expired, the handing over procedure is quite complex and the company is actively engaged with KPT to ensure a seamless transition including handing over concession assets, settlement of balances etc,” read the notice.

Last month, AD Ports Group, a UAE government-owned maritime and logistics provider, signed a 50-year concession agreement with KPT to operate the Karachi Gateway Terminal Limited (KGTL).

Under the terms of the agreement, a Joint Venture (JV) will be formed between AD Ports Group and Kaheel Terminals to manage, operate and develop KGTL at berths 6 to 9 at Karachi Port’s East Wharf.

Meanwhile, PICT stated that the terminal it operated pursuant to the concession agreement was its key operational asset, and it remains committed to conducting a transparent assessment of its options, carefully considering all relevant factors to determine the most appropriate path forward.

“This evaluation includes an examination of market conditions, the competitive environment and the overall economic outlook in Pakistan.

“Based on these assessments, the Company will make a duly considered and informed decision regarding its future direction,” read the notice.

PICT had a Build Operate Transfer (BOT) contract with KPT for the exclusive construction, development, operations and management of a common user container terminal at Karachi Port for a period of twenty-one years commencing June 18, 2002, which expired on June 17, 2023.