AD Ports Group, a UAE government-owned maritime and logistics provider, on Thursday announced the signing of a 50-year concession agreement with Karachi Port Trust (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.
AD Ports will be the majority shareholder, investing $220 million in new concession and growth CapEx over the first 10 years. Meanwhile, Kaheel is a UAE-based company formed to manage, operate and develop KGTL at berths 6 to 9 at Karachi Port’s East Wharf.
“The JV will undertake significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026,” read a statement.
“The development works will include deepening of berths, extension of quay walls, and an increase in container storage area.”
“As a result, the terminal will be able to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) and container capacity will increase from 750,000 to 1 million TEUs per annum,” the statement added.
The statement noted that the terminal’s operations are all dollarised with no foreign exchange exposure to the Pakistani Rupee. Historically, the terminal has been generating revenue of around $55 million and EBIDTA or around $30 million annually, it said.
“This agreement has the potential to unlock a new chapter of growth and progress for both the UAE and Pakistan,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
Al Sahmisi was of the view that the agreement would strengthen ties with key trading nations and leading to increased economic growth and prosperity.
Meanwhile, Faisal Subzwari, Pakistan Minister for Maritime Affairs, said, “The signing of this agreement underscores both our great nation’s shared vision for the development of port infrastructure and sets the stage for a prosperous global maritime ecosystem.”
Last month, AD Ports Group signed a Memorandum of Understanding (MoU) with the KPT.
The MoU encompassed a wide range of initiatives and projects aimed at enhancing port infrastructure, optimizing operational efficiencies, and embracing digitalization.