AD Ports Group has officially signed a new 25-year concession agreement for Bulk and General Cargo operations in collaboration with Karachi Port Trust (KPT), the federal agency overseeing Port of Karachi operations.
The concession involves the establishment of Karachi Gateway Terminal Multipurpose Limited (KGTML), a Joint Venture majority-owned by AD Ports Group and partnered with Kaheel Terminals, a UAE-based company. KGTML will take charge of developing, operating, and managing the Bulk and General Cargo terminal berths 11-17 at Karachi Port’s East Wharf, bolstering Karachi’s pivotal role in the maritime sector.
This agreement follows the prior concession secured by AD Ports Group for the development and management of Karachi Gateway Terminal Limited (KGTL) container terminal berths 6-10 at Karachi Port’s East Wharf in June 2023.
In addition to the 800-meter quay for the container terminal, this new concession expands the Joint Venture’s operational scope, providing an additional 1,500 meters of quay wall for general cargo and bulk operations adjacent to the container terminal. This grants complete operational control over Karachi Port’s East Wharf. The general cargo operations will focus on handling steel, paper, and clinker, while the clean bulk terminal will concentrate on grains and fertilizers.
The Joint Venture is set to invest approximately US$75 million in the initial two years, covering upfront fees, prepayments, and investments in superstructure and equipment. Subsequently, an additional US$100 million investment over five years will enhance efficiency and capacity by 75%, enabling the terminal to handle up to 14 million tonnes per annum.
As part of the agreement, the Joint Venture will assume control of the existing operations at East Wharf, ensuring an immediate positive impact on earnings upon completion.
Furthermore, the Bulk and General Cargo terminal, historically managing around 8 million tons per annum, is projected to generate approximately US$30 million in revenue and around US$10 million in EBITDA annually in the short term. The terminal’s operations are denominated in dollars and are anticipated to grow in the medium term as investments in upgrades and capacity materialize.
“This agreement comes as an extension of the strong bonds between the UAE and Pakistan. It also reflects the UAE’s openness to trade and investment globally, expanding its network of trade partners, and creating trade routes that link the world,” stated Thani bin Ahmed Al Zeyoudi, the UAE minister of State for Foreign Trade.
According to a statement, Pakistan holds a pivotal role as a gateway to landlocked nations in Asia, particularly serving as a significant trade corridor between East and West in the current global geopolitical context. This new concession solidifies AD Ports Group’s position as a highly invested and cost-effective facilitator of trade for the Commonwealth of Independent States (CIS) countries, contributing to the supply chain extending to that region and creating competitive access to global markets.
“By extending our cooperation with Karachi Port Trust and investing in key maritime trade routes for the UAE, AD Ports Group is reaffirming its commitment towards strengthening its connectivity within the region. We aim to transform Karachi Port into a dynamic hub for global trade, equipped with leading-edge infrastructure and innovative digital solutions. AD Ports Group remains aligned with our wise leaders’ vision and will continue to spearhead strategic partnerships that drive economic diversification,” commented Mohamed Juma Al Shamisi, managing director and Group CEO, of AD Ports Group.
