The AD Ports Group, based in the United Arab Emirates (UAE), has recently signed a momentous 50-year concession agreement with the Karachi Port Trust (KPT) in Pakistan.
A huge partnership at a crucial time
The agreement grants AD Ports Group the operation of Karachi Gateway Terminal Limited (KGTL) and involves an impressive investment of $220 million (Rs63.129 billion) towards infrastructure development in the first decade of the deal.
This partnership comes at a crucial time when Pakistan is actively seeking external financing to support its struggling economy. The collaboration entails a joint venture between AD Ports Group, acting as the majority shareholder, and Kaheel Terminals, a UAE-based company. Together, they will manage, operate, and enhance KGTL berths 6-9, located at Karachi Port’s East Wharf.
Karachi’s 10-year plan
Over the next ten years, the joint venture aims to make substantial investments in infrastructure and superstructure, with a focus on deepening berths, extending quay walls, and expanding the container storage area.
These improvements will enable the terminal to handle larger Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units), significantly increasing the container capacity from 750,000 to 1 million TEUs per annum.
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The expansion and enhancements planned for KGTL will not only strengthen the terminal’s position but also solidify Karachi’s role as a prominent player in the maritime industry. This collaboration between AD Ports Group and KPT marks a significant milestone in Pakistan’s quest for economic growth and development.
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