AD Ports Group has signed a 50-year concession agreement with Karachi Port Trust (KPT), the Pakistani federal government organisation in charge of the Port of Karachi’s operations.
A joint venture between AD Ports and Kaheel Terminals, a UAE-based firm, has been created under the provisions of the 50-year concession agreement to manage, operate, and develop the Karachi Gateway Terminal Limited (KGTL) berths 6-9 at Karachi Port’s East Wharf.
The partnership will reportedly undertake significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026.
AD Ports said that 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 TEU and container capacity will increase from 750,000 to 1 million TEU per annum.
This strategic agreement follows the signing in May this year of a Memorandum of Understanding (MoU), 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.
Additionally, the Group aims to provide technical expertise, advice, and support to the government for the planning, design, and implementation of trade, customs and logistics infrastructure projects within Pakistan.