AD Ports Group (ADX: ADPORTS), a global leader in trade, logistics, and industry, has announced the signing of a concession agreement with Karachi Port Trust (KPT), the Pakistani federal government agency that oversees the operations of the Port of Karachi.
Under the terms of the 50-year concession agreement, a Joint Venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company has been formed to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL), berths 6-9 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. 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. This expansion and enhancement will further cement the Terminal and Karachi’s position as a key player in the maritime industry.
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 of around $30 million annually.
This strategic agreement follows the signing this year of a Memorandum of Understanding, which inked both entities shared vision to drive growth, promote trade diversification, and strengthen bilateral ties between the UAE and Pakistan.
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 Karachi Port or any other projects of mutual interest.
H.E Suhail Al Mazrouei, Minister of Energy and Infrastructure, said “We are pleased to witness the signing of this concession agreement, which signifies the UAE’s continued commitment to strengthening our ties with Pakistan. This Joint Venture signifies our dedication to investing in increasing capacity and advanced infrastructure that will not only benefit trade and maritime business but will also enhance the region’s connectivity and drive the objectives of both nations towards economic resilience and diversification.”
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