JV with AD Ports Group as majority shareholder to invest US$ 220mn in new concession
AD Ports Group announced today the signing of a concession agreement with Karachi Port Trust (KPT), the Pakistani federal government agency that oversees the operations of the Port of Karachi.
Under the terms of the 50-year concession 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 Limited (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.
Post Panamax vessels
As a result, the terminal will be able to handle Post Panamax class vessels of up to 8,500 TEUs and container capacity will increase from 750,000 to 1mn TEUs per annum. This expansion and enhancement will further cement the Terminal and Karachi’s position as a key player in the maritime industry.
“This Joint Venture signifies our dedication to investing in increasing capacity and advanced infrastructure that will not only benefit trade and maritime business but will also enhance the region’s connectivity,” commented HE Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure.
“The signing of this agreement underscores both our great nation’s shared vision for the development of port infrastructure and sets the stage for a prosperous global maritime ecosystem,” remarked Faisal Subzwari, Pakistan Minister for Maritime Affairs.
