Pakistan

UAE’s AD Ports signs deal with KPT to operate Karachi Terminal

  • Joint venture between Kaheel Terminals and majority shareholder AD Ports Group to invest $220mn in new concession and growth capital expenditure over the first 10 years
Published June 22, 2023
Governor Sindh Kamran Tessori along with Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari inaugurating the
Karachi Gateway Terminal Limited at Karachi on June 22, 2023 Courtesy: PID
Governor Sindh Kamran Tessori along with Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari inaugurating the Karachi Gateway Terminal Limited at Karachi on June 22, 2023 Courtesy: PID

AD Ports Group, a UAE government-owned maritime and logistics provider, on Thursday announced the signing of a 50-year concession agreement with Karachi Port Trust (KPT) to operate the Karachi Gateway Terminal Limited (KGTL).

Under the terms of the agreement, a Joint Venture (JV) will be formed between AD Ports Group and Kaheel Terminals.

AD Ports will be the majority shareholder, investing $220 million in new concession and growth CapEx over the first 10 years. Meanwhile, Kaheel is a UAE-based company formed to manage, operate and develop KGTL at berths 6 to 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,” read a statement.

“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 added.

The statement noted that 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.

Al Sahmisi was of the view that the agreement would strengthen ties with key trading nations and leading to increased economic growth and prosperity.

Meanwhile, Faisal Subzwari, Pakistan Minister for Maritime Affairs, said, “The signing of this agreement underscores both our great nation’s shared vision for the development of port infrastructure and sets the stage for a prosperous global maritime ecosystem.”

Last month, AD Ports Group signed a Memorandum of Understanding (MoU) with the KPT.

The MoU encompassed a wide range of initiatives and projects aimed at enhancing port infrastructure, optimizing operational efficiencies, and embracing digitalization.

Comments

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Nadeem Jun 22, 2023 05:49pm
How the deal will affect the shareholders of pict
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test Jun 22, 2023 06:26pm
US is using UAE to keep track of Karachi Port because Pakistan has strategic and military ties with China and our western puppet are doing to this to convince their masters such as jewnited snakes of america and jewurope that they will keep licking their shoes with their tongues.
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Abdullah Jun 22, 2023 06:28pm
Finally competent people will run it.Efficient people will be hired and all the sifarshis will start complaining soon and will be srnt home.
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Tulukan Mairandi Jun 22, 2023 06:34pm
Sell everything lock stock barrel
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Imtiaz Jun 22, 2023 06:41pm
@Nadeem, the company was using high court as an excuse,they have stake billion of dollars abroad.didn’t pay any thing to share holders.bunch of corrupt and crooked management.just see the value of pibtl.they have billions of assast and the company is broke.shame on Siddique and gang.
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Jonathan Jun 22, 2023 07:59pm
New form of colnialism..compliments of apoliticals...
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KhanRA Jun 22, 2023 08:10pm
Selling off the country has begun now. This is what we get for Ishaq Dar.
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Rashid Farooq Jun 22, 2023 08:21pm
اسلام علیکم سائل میونسپل کمیٹی کوٹ ادو میں مستقل ملازم ہے جو کہ دوران سروس سائل کا وال فوت ہوا سائل کے آرڈر پر لکھا گیا کہ جیسے ہی کلرک کی سیٹ خالی ہوگی سائل کو پرموشن دی جائیگی مگر 20سال گزرنے کے باوجود سائل کو پرموشن نہ دی گئی سائل بہت پریشانی میں مبتلا ہے
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Waqas Sheikh Jun 22, 2023 08:45pm
@Nadeem, PICT has become worthless, the berths which were operated by PICT are now handed over to AD Ports.
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Rebirth Jun 22, 2023 11:10pm
What good is the expansion and increased flow of goods if there’s a problem transporting the goods within the country? We use trucks to transport the goods and there’s yet to be a freight train service that links directly to the port and the main track. There was some progress made but the track linking to Pipri that was supposed to reduce the burden on the national highway and the roads within the city hasn’t yet been built or at least, such news hasn’t been shared even if it has. Trucks drive within the city’s roads damaging an already fragile infrastructure that isn’t maintained by the corrupt Sindh government and the national highway isn’t an actual highway. The Hyderabad-Sukkur motorway hasn’t been built, which isn’t surprising since it was PPP’s responsibility. A significant portion of these goods are consumed in Punjab. They should make it convenient to transport these goods to them using their own resources since Sindh doesn’t have much trade and neither is the PPP interested.
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Ulgen Jun 25, 2023 12:45am
Zardaris will get the money and pass on half to the generals.
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Pervez Mahmood Oct 08, 2023 05:26am
50 years' contract ???
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