UAE to take over development at KPT

KARACHI: UAE’s Abu Dhabi Ports Group (AD Ports) has signed a 50-year concession agreement with Karachi Port Trust, the Pakistani federal government agency that oversees the operations of the Port of Karachi.

This comes after AD Ports signed a memorandum of understanding (MoU) with the Karachi Port Trust in May, which paves a way for infrastructural development, expansion, and digitalisation of port projects within Pakistan.

According to the 50-year concession agreement, a joint venture has been formed between AD Ports as the majority shareholder and UAE-based Kaheel Terminals, and continued investments are expected for the next 10 years.

The Karachi Gateway Terminal Limited berths 6-9 at Karachi Port’s East Wharf will be managed and developed by the venture. The development project will include the deepening of berths, extension of quay walls, and increased container storage.

The terminal will then be able to handle post-panamax class vessels of up to 8,500 TEU and container capacity will increase from 750,000 to 1m TEU per annum. Previously, the terminal has been generating revenue of around $55m and EBITDA of around $30m annually.

Three new MoUs have also been signed by the AD Ports Group with the Government of Pakistan related to developing connection between Karachi Port and the railways, development of Port Qasim, and enhancing digital trade.