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Friday, December 8, 2023

AD Ports signs 50-year concession agreement with Port of Karachi


AD Ports Group, a global trade, logistics and industrial leader, has signed a 50-year agreement with Karachi Port Trust (KPT) to form a joint venture (JV) to manage, operate and develop the port with a future investment of 220 million USD first 10 years.

Under the terms of the concession agreement, a joint venture with Emirati firm Kaheel Terminals and AD Ports Group as majority shareholders will develop Karachi Gateway Terminals Limited (KGTL), berths 6-9 of Karachi Port’s East Terminal.

Most of the investment is planned for 2026. The development will include deepening berths, extending quay walls and increasing container storage area. As a result, the terminal will be able to handle post-Panamax vessels of up to 8,500 TEU (20-foot equivalent units), increasing container capacity from 750,000 TEU to 1 million TEU per year. This expansion and enhancement will further strengthen the position of the terminal and Karachi as a major player in the maritime industry.

dollarize all

The terminal’s operations are all denominated in US dollars and there is no foreign exchange risk in Pakistani rupee. Historically, the terminal has generated approximately $55 million in annual revenue and approximately $30 million in EBIDTA.

The strategic agreement follows the signing of a Memorandum of Understanding in May this year, which signed a shared vision of the two entities to drive growth, facilitate trade diversification and strengthen bilateral relations between the UAE and Pakistan.

AD Ports Group also signed three MoUs with the Pakistani government to establish a framework for cooperation to improve transport infrastructure, facilitate efficient cargo movement, reduce logistics costs and enhance the competitiveness of Karachi Port or any other projects of mutual interest . The team will provide technical expertise, advice and support to the government in planning, designing and implementing trade, customs and logistics infrastructure projects within Pakistan.

Memorandum of Understanding on Railway Interconnection

Under the MoU, both parties agreed to cooperate under the framework of bilateral cooperation to develop and upgrade the connectivity of Karachi Port with the railway system.

Free Zone Memorandum of Understanding

The MoU establishes a partnership between AD Ports and the Port Qasim Authority to develop, operate and manage industrial and/or free zone facilities in the Port Qasim area.

Digital Solutions Memorandum of Understanding

Under the MoU, AD Ports Group and the Pakistani government will collaborate on the development of digital trade and logistics solutions, including digitization of customs.

Suhail Mazrouei, Minister of Energy and Infrastructure, said: “This MoU is a sign of the UAE’s continued commitment to strengthening relations with Pakistan. Facilitating trade and maritime business, it will also enhance connectivity in the region, advancing both countries’ goals of economic resilience and diversification.”

Dr Sani bin Ahmad Al Zeyoudi, Minister of State for Foreign Trade, said: “This landmark agreement will enhance the terminal’s capabilities and further enhance its attractiveness to international trading partners, serving Karachi as a The status of key players in global trade contributes to the industry.

Strengthen cooperation

“AD Ports Group is not only investing in the development of the Karachi Gateway Terminal, but also laying the groundwork for greater cooperation and mutual benefit between the UAE and Pakistan. We remain committed to our great leader’s vision of facilitating partnerships with all international partners as well as the Pakistani government. Cooperation.”

Faisal Subzwari, Minister of Maritime Affairs of Pakistan, said: “The UAE and Pakistan have a strong and long-standing relationship, with both countries growing in the areas of trade and investment as a result of our leaders’ commitment to further strengthening the relationship. The agreement The signing underscores our great nation’s shared vision for the development of port infrastructure and lays the foundation for a thriving global marine ecosystem.”

Captain Mohamed Juma Al Shamisi, Managing Director and Group Chief Executive Officer, AD Ports Group, said: “The signing of the concession agreement with the Karachi Port Trust, along with three Memorandums of Understanding, reflects AD Ports Group’s strategy to invest in the UAE’s key maritime trade lanes, delivering Long-term, sustainable growth prospects in regions that replicate our successful integrated business model.”

A new chapter of growth

“The Concession Agreement has the potential to open a new chapter of growth and progress for the UAE and Pakistan, allowing us to strengthen our ties with key trading nations and foster economic growth and prosperity. We foresee significant opportunities ahead, according to our wise leadership With our vision, we will redefine the ocean landscape and create value for all stakeholders.”

Syed Syedain Raza Zaidi, chairman of KPT, the Pakistani federal government agency that oversees the operations of Karachi Port, said: “This landmark agreement marks an important milestone for Karachi. The growth and development of the port brings great potential. Working together, we are paving the way for a thriving container terminal that will increase efficiency, attract investment and stimulate the economy.”

In 2021, the UAE is Pakistan’s largest regional trading partner, accounting for more than 40% of Pakistan’s trade with Arab countries. According to the Pakistan National Bureau of Statistics, the value of the UAE’s non-oil exports to Pakistan in 2022 is nearly 4.8 billion dirhams (13 One hundred million U.S. dollars). National Ministry of Foreign Trade. In addition, re-exports from the UAE to Pakistan amounted to AED 10.6 billion (US$ 2.9 billion), an increase of 7.7% compared to 2021. trade arab news agency


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