Karachi: Under the deal reached, United Arab Emirates’ Abu Dhabi Ports (AD Ports) will advance $50 million to Karachi port and will pay the port over the next three months, Federal Maritime Minister Faisal Sabzwari said on Friday. Investing $102 million over five years to expand between AD Ports and Karachi Port Trust (KPT).
Sabzwari said at a press conference advertising port Investment in reinforcement and restructuring will be made by acquiring more area. “This will generate more revenue and royalties for the country and also increase the volume shipped per box by 12.5 percent,” Subzwari said.
Leading UAE port operator AD Ports signs 50-year concession agreement with UAE Karachi Port Trust (KPT) operates a terminal in the city.
under this dealPakistan International Container Terminals (PICT) will be operated by a joint venture (JV) between AD Ports Group (as majority shareholder) and Kaheel Terminals. Kaheel Terminals is a UAE-based company to manage, operate and develop Karachi Gateway Terminal Limited (KGTL) Berths 6-9 at the Port’s East Terminal.
The Federal Minister stated that this transaction will increase our revenue by at least $5 million to $7 million per year and we will see more revenue as they attract more business to that particular container terminal.
Under the agreement, the minister said KPT will receive a royalty of US$18 per container. According to AD Port, the minister made it clear that the joint venture will make substantial investments in infrastructure and superstructure over the next 10 years, most of which are planned for 2026.
The development will include deepening the berths, extending the quay walls and adding container storage areas.
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. He said this expansion and enhancement will further strengthen the position of the terminal and Karachi as a major player in the maritime industry.
Sabzwari said the company had shown interest in the growing number of berths at the port of Karachi, the network of rail links from Karachi to Port Qasim, and the industrial park at Port Qasim. So overall, expressions of interest amounted to more than $2 billion, he said.
Sabzwari said the establishment of AD Port in Pakistan itself is a very important development for the improvement of the country’s maritime sector. “The footprint of Abu Dhabi Ports in the port of Karachi is very important in itself,” said Subzwari.
The minister hopes that the arrival of Port AD will also help in improving Karachi Port’s financial situation through revenue generation.