By Staff Reporter
KARACHI: AD Ports Group, a UAE government-owned maritime and logistics provider, said on Thursday it had signed a 50-year concession agreement with Pakistan’s Karachi Port Trust (KPT) to operate the Karachi Gateway Terminal Limited (KGTL).
The deal involves forming a joint venture between AD Ports Group and Kaheel Terminals, a UAE-based company set up to manage, operate and develop KGTL at berths 6 to 9 at Karachi Port’s East Wharf.
AD Ports Group will be the majority shareholder and invest $220 million in new concession and growth capital expenditure over the first 10 years, the group said in a statement.
The joint venture will undertake significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026, it added.
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 said.
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.
Faisal Subzwari, Minister for Maritime Affairs, said the agreement underscored both countries’ shared vision for the development of port infrastructure and set the stage for a prosperous global maritime ecosystem.
Last month, AD Ports Group signed a Memorandum of Understanding (MoU) with the KPT to enhance port infrastructure, optimize operational efficiencies, and embrace digitalization.
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