KARACHI: Federal Minister for Maritime Affairs, Faisal Sabzwari on Friday said the 50-year concession agreement between Abu Dhabi (AD) Ports Group and Karachi Port Trust (KPT) will pave the way to attract $2 billion investment in the maritime sector in Pakistan.

Speaking at a press conference at KPT Head Office, the minister said that under this agreement, the Abdu Dhabi Port will invest in the development of infrastructure, reinforcement and restructuring. He said the country’s revenue will also increase by about $7 million per annum as the Abu Dhabi Ports Group is also interested to acquire more area to enhance its port operations.

The minister said that under this agreement the royalty per box will also increase by 12.5 percent. KPT will receive $18 per container as royalty.

He said Abu Dhabi Ports Group will pay $50 million upfront to Karachi Port Trust and will invest $102 million for expansion in next three to five years.

He said the Abu Dhabi Ports Group has also expressed its interest to invest over $2 billion in Pakistan in development of infrastructure including a railway connection between country’s two main ports.

The minister said the concession agreement with Abu Dhabi Ports Group will help in improving the financial health of Karachi Port through revenue generation.

Chairman KPT Zyedain Raza Zaidi and other senior officers of Karachi Port Trust were also present on this occasion.

Copyright Business Recorder, 2023