AD Ports Group, a world-leading authority in trade, logistics, and industry, declared on Thursday the finalization of a concession agreement with the Karachi Port Trust (KPT).
The terms of the 50-year concession agreement have stipulated the formation of a Joint Venture between AD Ports Group, as the majority shareholder, and Kaheel Terminals, a company based in the UAE.
The JV is to oversee, operate, and develop the Karachi Gateway Terminal Limited (KGTL), specifically berths 6-9 at the East Wharf of Karachi Port, as indicated in a company statement.
Karachi Terminal’s Expansion Bolsters Maritime Industry:
The JV is set to make substantial investments in infrastructure and superstructure over the next decade, with the majority planned for 2026.
These development plans will encompass the deepening of berths, extension of quay walls, and expansion of the container storage area.
Consequently, the terminal will be equipped to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units), and the container capacity will increase from 750,000 to 1 million TEUs per year.
This expansion and enhancement will further solidify the Terminal and Karachi’s role as a significant entity in the maritime industry.
The Terminal’s operations are entirely dollarised, with no foreign exchange exposure to the Pakistani Rupee.
The terminal has historically generated revenue of around $55 million and an EBITDA of approximately $30 million annually.
This strategic agreement comes after the prior signing of a Memorandum of Understanding, which encapsulated the shared vision of both entities to stimulate growth, encourage trade diversification, and fortify the bilateral ties between the UAE and Pakistan.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, of AD Ports Group, expressed his delight about the agreement, seeing the potential for unlocking a new era of growth and progress for both the UAE and Pakistan.
He envisions the strengthening of ties with key trading nations and the increase of economic prosperity.
Faisal Subzwari, Pakistan’s Minister for Maritime Affairs, acknowledged the strong and enduring relationship between the UAE and Pakistan, seeing continuous growth in trade and investment sectors.
He emphasized the agreement as a testament to their shared vision for developing port infrastructure and fostering a prosperous global maritime ecosystem.
Karachi Port Trust Chairman: Agreement Fuels Terminal Growth:
Syed Syedain Raza Zaidi, Chairman of Karachi Port Trust, views the agreement as a significant milestone with substantial potential for the growth and development of Karachi Port.
He expressed his belief that the collaboration would pave the way for a thriving container terminal that will boost efficiency, draw investment, and stimulate the economy.