A 50-year concession agreement has been signed for the development of Karachi Port in Pakistan. The agreement was signed between AD Ports Group and Pakistan’s federal agency Karachi Port Trust.
The organizations will invest $220m to establish a new concession at Karachi port and manage its expansion over 10 years. According to the terms of the deal, AD Ports, the largest shareholder, and Kaheel Terminals, a company based in the United Arab Emirates, have created a joint venture to manage, operate, and develop berths six to nine at the east wharf of the Karachi Gateway Terminal.
Over the following ten years, the joint venture will invest significantly in infrastructure and superstructures. With the majority of that investment scheduled for 2026.
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Overview of the concession agreement to develop Karachi Port in Pakistan
The development work will involve increasing the container storage area, extending quay walls, and deepening berths. Following the completion of the development work, the terminal will be able to accommodate “post panamax” class vessels carrying up to 8,500 twenty-foot equivalent units (TEUs), and the yearly capacity for containers will rise from 750,000 to a million TEUs.
Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports said, “The agreement serves as an example of AD Ports Group’s plan to invest in important maritime trade routes for the UAE and to replicate our effective integrated business model in areas with long-term, sustainable growth possibilities.”
“This agreement to develop Karachi Port has the potential to open up a new chapter of development and advancement for both the UAE and Pakistan. Through the strengthening of our links with important trading partners and the resulting increase in economic growth and prosperity,” he continued.
The development comes as the UAE and Pakistan continue to strengthen trade ties. The UAE accounted for more than 40% of Pakistan’s commerce with Arab countries in 2021. Making it the country’s biggest commercial partner in the area.
AD Ports also intends to work in conjunction with Angolan organizations. In order to improve maritime connections along Africa’s west coast.
