AD Ports Group signs 50-year concession agreement with Karachi Port Trust

AD Ports Group signs 50-year concession agreement with Karachi Port Trust

Abu Dhabi: Abu Dhabi’s AD Ports Group has signed a 50-year concession agreement with Pakistan’s Karachi Port Trust, it said on Thursday. Under the terms of the agreement, a joint venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, has been formed to manage, operate and develop the Karachi Gateway Terminal Ltd (KGTL), berths 6-9 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. 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. This expansion and enhancement will further cement the terminal and Karachi’s position as a key player in the maritime industry. 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 of around $30 million annually. Captain Mohamed Juma Al