AD Ports Announces Completion of 50-Year Terminal Concession for Karachi

AD Ports of the UAE has signed a concession agreement with the Karachi Port Trust, the Pakistani federal agency that oversees the operations of the Port of Karachi.

Under the 50-year Concession Agreement, a joint venture between AD Ports as the majority shareholder and Kaheel Terminals, a UAE-based company has been formed to manage, operate and develop Berths 6–9 of the Karachi Gateway Terminal Limited on the East Wharf of the port of Karachi.

The JV will make significant infrastructure and build-out investments over the next 10 years, with the bulk of this planned for 2026. This concession agreement follows the signing of a letter of intent in May this year.

The development work includes deepening the berths, widening the quay walls and increasing the container storage area. This will enable the terminal to handle post-Panamax class vessels up to 8,500 TEU and increase container capacity from 750,000 to 1 million TEU per year.

In the past, the terminal generated approximately $55 million in revenue and approximately $30 million in EBITDA per year.

AD Ports Group has also signed three MoUs with the Government of Pakistan to establish a framework for cooperation in improving transportation infrastructure, facilitating efficient cargo movement, reducing logistics costs and enhancing the competitiveness of the Port of Karachi or other mutual projects create interest.

The first created a bilateral cooperation framework to develop and improve the connection of the port of Karachi to the railway systems. The other two relate to the development, operation and management of free zone facilities in the Port Qasim area and the development of digital trade and logistics solutions including customs digitization.

The UAE was Pakistan’s top regional trading partner in 2021, accounting for over 40% of Pakistan’s trade with Arab countries. According to the Pakistan State Ministry of Foreign Trade, UAE non-oil exports to Pakistan in 2022 were nearly US$1.3 billion. In addition, UAE re-exports to Pakistan totaled US$2.9 billion, a 7.7% growth compared to 2021.

This is AD Ports’ second similar agreement in just a few days. Earlier this week, the company signed a 30-year concession agreement with the government of the Republic of the Congo to manage and operate the multipurpose New East Mole terminal in Pointe-Noire.

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