In order to administer and expand the Karachi Gateway Terminal Limited (KGTL), the Karachi Port Trust (KPT) and the AD Ports Group, based in the United Arab Emirates (UAE), have signed into a 50-year concession deal.
Over the first ten years of the arrangement, the group will spend $220 million on infrastructure improvements. The importance of this arrangement is highlighted by the fact that Pakistan is looking for foreign funding to bolster its faltering economy.
A joint venture between AD Ports Group and Kaheel Terminals, a business with headquarters in the United Arab Emirates, has been established in accordance with the conditions of the agreement, with AD Ports Group holding the majority of the stock. The joint venture is in charge of managing the KGTL, namely berths 6 through 9 at the East Wharf of Karachi Port, as well as its operation and expansion.
The infrastructure improvement project’s main goals are to deepen berths, extend quay walls, and increase the space available for storing containers. The terminal’s yearly container capacity will rise from 750,000 to 1 million TEUs as a result of these upgrades, allowing it to accommodate larger boats.
Captain Mohamed Juma Al Shamisi, the Managing Director and Group CEO of AD Ports Group, expressed excitement about the concession agreement and noted that it is consistent with the group’s objective of investing in important marine trade routes. According to him, this deal has the potential to strengthen the economies of the UAE and Pakistan, promote closer ties with important trading partners, and promote overall economic growth and prosperity.
In order to reduce exposure to changes in the Pakistani rupee, the terminal’s activities are carried out in US dollars.
In 2021, the UAE will be Pakistan’s top regional trading partner thanks to their strong economic ties. Over 40% of Pakistan’s trade with Arab countries was conducted on a bilateral basis between the two countries. Nearly AED 4.8 billion ($1.3 billion) in non-oil exports from the UAE to Pakistan were made in 2022, while AED 10.6 billion ($2.9 billion) in re-exports from the UAE to Pakistan showed an increase of 7.7% from 2021 to 2022.
The contract between AD Ports Group and KPT was recognised as a significant milestone by Syed Syedain Raza Zaidi, Chairman of Karachi Port Trust, according to Geo.
Zaidi thinks that this partnership will pave the road for a thriving container terminal, increasing productivity, luring investment, and
