The Abu Dhabi Ports Group announced that it has signed a 50-year concession agreement with the Karachi Port Foundation, a federal government affiliate that oversees the operation of the port.
Under the concession agreement, a joint venture will be established between the Abu Dhabi Ports Group as the majority shareholder and the UAE-based Kahil Terminals Company to manage, operate and develop the “Gateway Karachi Limited”, which includes berths 6-9, located off the eastern pier. port of Karachi.
The joint venture will invest heavily in infrastructure and superstructure development over the next ten years, and it is planned that most of this investment will be rolled out in 2026.
Development works include increasing the draft depth of the berths, widening the quay wall and increasing the size of the container storage area. With this investment, the terminal will be able to accommodate Post Panamax vessels with a capacity of up to 8,500 TEU, and the terminal’s capacity will increase from 750,000 to 1 million TEU per year. and the Port of Karachi as a major player in the maritime sector.
It should be noted that the terminal conducts all its transactions in dollars and therefore is not subject to fluctuations in the foreign exchange rate against the Pakistani rupee. The station managed to generate an annual income of about $55 million and an earnings before interest, taxes, depreciation and amortization of about $30 million per year.
The signing of this strategic agreement follows the signing by both parties in May of this year of a memorandum of understanding that reflects their shared vision of advancing development, promoting trade diversification and strengthening bilateral relations between the United Arab Emirates and Pakistan.
The Abu Dhabi Ports Group has also signed three MoUs with the Government of Pakistan to create a framework for cooperation in improving transport infrastructure, simplifying and developing cargo operations, reducing logistics costs and increasing the competitiveness of the Port of Karachi, in addition to cooperation. in other projects of mutual interest. Under these MoUs, the group will provide its technical expertise, advice and support to the Government of Pakistan in planning, developing and implementing trade, customs and logistics infrastructure projects in Pakistan.
Source: VAM