AD Ports investing $220m to develop Karachi Port

Abu Dhabi Ports Group will invest $220 million over the next decade to upgrade infrastructure at Karachi Port after signing a 50-year concession agreement with Pakistan’s Karachi Port Trust.

AD Ports Group and UAE-based Kaheel Terminals have formed a joint venture to manage, operate and develop the Karachi Gateway Terminal at Karachi Port’s East Wharf. 

The new venture will invest in infrastructure and superstructure over the next 10 years, with the bulk planned for 2026, AD Ports said in a statement.

The development works will include deepening berths, extending quay walls and increasing the container storage area. 

As a result, the terminal will be able to handle Post-Panamax class vessels of up to 8,500 20-foot equivalent units (TEUs) and container capacity will increase from 750,000 to one million TEUs per annum. 

The terminal’s operations are all dollarised with no foreign exchange exposure to the Pakistani rupee. The terminal has been generating revenue of around $55 million and EBITDA of about $30 million annually. 

AD Ports Group has also signed three memorandums of understanding with the government of Pakistan to establish a framework for cooperation. It will improve transportation infrastructure, facilitate efficient cargo movement, reduce logistics costs and enhance the competitiveness of Karachi Port and any other projects of mutual interest. 

It will provide technical expertise, advice and support to the government for planning and implementing trade, customs and logistics infrastructure projects within Pakistan. It will also develop and upgrade Karachi Port’s connections to the railway systems.

Finally it will cooperate in developing digital trade and logistics solutions, including customs digitalisation.

The group also signed a 30-year concession agreement on Tuesday with the government of the Republic of the Congo to operate the multipurpose New East Mole Terminal in Pointe-Noire.