A UAE-based company has partnered with Pakistan to manage and enhance a container terminal at Karachi Port, the largest and busiest seaport in the country. The deal is anticipated to stimulate trade and investment, strengthening the longstanding and robust relationship between the two nations.
AD Ports Group, a global leader in port and industrial zone services, signed the deal with Karachi Port Trust (KPT) to manage and develop Karachi Gateway Terminal Limited (KGTL). KGTL includes berths 6-9 at Karachi Port’s East Wharf, and the concession granted to AD Ports Group spans 50 years.
Under the deal, AD Ports Group and UAE-based company Kaheel Terminals will establish a joint venture (JV) to operate KGTL. AD Ports Group will hold the majority stake in the JV, and together, they plan to invest $220 million in infrastructure and superstructure development over the next decade.
The investment will include the deepening of berths, extension of quay walls, and increase in the container storage area. As a result, the terminal can handle larger vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) and increase its container capacity from 750,000 to 1 million TEUs per annum.
AD Ports Group announced the deal on Thursday. Captain Mohamed Juma Al Shamisi, the managing director and Group CEO of AD Ports Group, stated that the deal exemplifies their strategy. The strategy involves investing in critical maritime trade routes for the UAE and replicating their successful integrated business model. They aim to do this in regions that offer long-term, sustainable growth prospects.
The deal could fuel growth and strengthen ties with key trading nations, fostering economic prosperity for the UAE and Pakistan. Faisal Subzwari, Federal Minister for Maritime Affairs of Pakistan, emphasized the strong, growing relationship between the two countries and their commitment to further strengthen ties.
The deal signing highlighted the shared vision for port infrastructure development and global maritime prosperity. KPT Chairman, Syed Syedain Raza Zaidi, described it as a significant milestone with enormous growth potential for Karachi Port.
He said that joining forces with AD Ports Group was paving the way for a thriving container terminal that would enhance efficiency, attract investment and stimulate the economy. The deal comes when Pakistan faces economic challenges and seeks external financing to support its recovery. Country has been negotiating with the International Monetary Fund (IMF) for a $6 billion loan program since 2019.
The government has also received financial assistance from friendly countries such as Saudi Arabia, China, and Qatar. The UAE is Pakistan’s number one regional trading partner, accounting for over 40 percent of Pakistan’s trade with Arab countries. Reexports from the UAE to Pakistan amounted to $2.9 billion, reflecting a 7.7 percent growth compared to 2021.
Karachi Port is Pakistan’s main gateway for international trade, handling about 60 percent of the country’s cargo. The port has 30 berths and can handle vessels up to 75,000 DWT (deadweight tonnage). The port also serves as a regional transshipment and transit trade hub for Afghanistan, Iran, and Central Asian Republics.
AD Ports Group is a leading global provider of integrated port operating in eight countries across four continents. The group manages 11 ports and terminals in the UAE and Guinea, including Khalifa Port, Zayed Port, and Fujairah Port. The group also operates KIZAD (Khalifa Industrial Zone Abu Dhabi), one of the region’s largest industrial zones.
