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Print Print 2023-06-23

Karachi port: Govt to lease four out of 33 berths to UAE for $220m

  • The JV will undertake significant investments in infrastructure and superstructure over the next 10 years, says AD Group
Published June 23, 2023

KARACHI: AD Ports Group of the United Arab Emirates (UAE) signed an agreement Thursday to take over the running of part of main Karachi docking facility in a deal worth an immediate $220 million, the company said.

The deal will come as a shot in the arm for Pakistan, with the economy on the brink of collapse and the government desperate for big-ticket foreign investment to help service crippling debt.

AD Ports Group has formed a joint venture with another UAE company, Kaheel Terminals, to take over berths from Karachi Port Trust (KPT), the state-owned handling agency.

Strategic MoU signed: AD Ports Group, KPT to develop advance port infrastructure

Karachi Port is Pakistan’s oldest and busiest, with 33 berths, and the UAE deal will see the joint venture lease four of them for the next 50 years,

“The JV will undertake significant investments in infrastructure and superstructure over the next 10 years,” an AD Group statement said.

Plans include deepening the berths to allow for bigger ships to dock, extending the quay wall, and increasing the container storage area.

As a result, the terminal will be able to handle ships capable of carrying up to 8,500 containers, and capacity will increase from 750,000 to a million containers a year, the statement said.

The bulk of development is planned for 2026.

The UAE is a major contributor to Pakistan’s economy in the form of grants, loans and direct investment, and has previously bailed out a government that for months has been on the brink of defaulting on its debt.

Comments

Comments are closed.

Awami Jun 23, 2023 07:20am
It is slippery slope. The terms are not clearly given to citizens. $220 million is big amount , but us Economy goes up more over years, 200million will be depreciating with time. Can anybody predict what will value worth of $220 Million after 50 years ? Govt should rent it and can get money annually. Do not give OUTRIGHT for 50 years , but rent it per year. It should be adjusted per value of dollar related to some USA indices such as SP500.
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Ehsan Jun 23, 2023 09:25am
@Awami, I think they were and are not in a position to rent it out annually but term agreements have to be reached. But I agree that the term should have been 19 years. Will the expansion of berths eventually take over the other berths ?? Timeline of payments?? Who are ubo of these transactions besides emeriti royal family? More transperancey should have been shown imho. Ports are not just dollar and dimes decision but require strategic consideration for every country especially poor countries trapped in debt repayment cycle.
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KhanRA Jun 23, 2023 11:32am
Might as well sell Kashmir too
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Aatir Raza Jun 23, 2023 01:43pm
I think the partnership with foreigner investor will work out. If we have long term plans so we should open for all type of partnership by liquidating equity instead of just leasing. Both partners will work for one motive to grow and to establish profitable partnership.
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Tulukan Mairandi Jun 23, 2023 01:51pm
This is headlines for 2 days. Amazing.
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Maqbool Jun 23, 2023 03:09pm
Single source negotiation and sale …. No tender ….
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Taha Abbasi Jun 23, 2023 04:51pm
Competitive bidding should have been followed with the highest bidder winning out, and bringing max investment in the country.
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Muhammad Waseem Jun 23, 2023 07:02pm
@Tulukan Mairandi, Dude, get a life and if posible, a job too.
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Az_Iz Jun 23, 2023 08:59pm
Investment is better than aid.
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Awami Jun 23, 2023 10:18pm
@Taha Abbasi, Your suggestion is right. There should be bidding not selective awarding business. It is nation's business it should not run as charity for rich clients, but as business.
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Usama Jun 24, 2023 07:02am
@Awami, you are so innocent. They leased it to get instant money. When there will be other Govt, they will put all broken eggs into the basket of them. This country is our, Hum aur hmari naslain chatti bhartay rhain gay, mulk in k baap ka thori hai jo inhon ne long term ko dekhna?
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Rai Jun 24, 2023 10:52am
@KhanRA, this has already been done in khan's tenure
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Asad Jun 24, 2023 02:46pm
Well 220million USD and expanding capacity to 8500 to 1 million i think if Pakistan has developed the capacity to 8500 in 77 years then great to have a JV with UAE Thanks for Investing in Pakistan
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محمد عابد علی Jun 25, 2023 12:15pm
ایسی لانگ ٹرم ڈیلز میں صرف فکسڈ پرائس طے نہیں ہونی چاہیئے بلکہ پرافٹ میں بھی کوئی پرسنٹیج رکھی جانی چاہیئے تاکہ وقت گزرنے کے ساتھ اگر ملکی حالات بہتر ہوں تو آپکو اپنے فیصلوں پہ پریشانی نہ ہو اور ملک کا حتی الوسع زیادہ فائدہ ہو۔
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Shah Jun 27, 2023 04:56pm
This does not seems a fair deal. Ports of any country are of extreme Strategic importance and shouldn't be handed over to anyone else. All your trade depends on this Karachi port. This is like selling part of Pakistan. To cope with the economic crisis, the Pakistan Government should float it's shares for money making but the control should remain with GoP. Like The US float state bond every year.
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