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AD Ports Group and Pakistan’s Karachi Port Trust (KPT) have inked a 25-year concession agreement for a bulk and general cargo terminal at Karachi Port, according to a statement released on Saturday. The agreement will see JV Karachi Gateway Terminal Multipurpose Limited (KGTML) — formed by majority shareholder AD Ports and UAE-based Kaheel Terminals — develop, operate and manage bulk and general cargo terminal berths 11 to 17 at Karachi Port’s East Wharf granting it full operational control, the statement notes.
By the numbers: The JV will invest some USD 75 mn in the first two years for upfront payments, fees, and investments in port infrastructure and equipment. An additional USD 100 mn investment will be poured in within five five years, boosting the terminal’s capacity 75% to handle 14 mn tonnes yearly. The facility is expected to rake in some USD 30 mn in revenues a year in the short term, the statement notes.
What else do we know? Under the agreement’s terms, KGTML will have access to a 1.5k meters quay wall for general cargo and bulk operations and an adjacent 800 meters quay for container operations. Cargo operations will focus on steel, paper, and clinker, while the clean terminal will process grains and fertilizers, the statement added.
It’s not the first time they partner up: The agreement builds upon a concession agreement inked in June 2023 that saw AD Ports acquire the rights to develop, operate and manage Karachi Gateway Terminal Limited’s (KGTL) container terminal berths 6 to10 at the same wharf.
REMEMBER- Pakistan and the UAE inked a slew of multi-bn USD agreements last November, outlining investments in Pakistan’s logistics, ports, and other sectors.
