AD Ports Group ink agreement to operate + develop Karachi terminal: AD Ports Group has signed a 50-year concession agreement with Pakistan’s Karachi Port Trust (KPT) — the Pakistani government body overseeing operations at the facility — to “manage, operate, and develop” Karachi Gateway Terminal Limited (KGTL) at Karachi Port’s East Wharf, according to a statement. AD Ports Group will establish a joint venture with UAE-based Kaheel Terminals, to operate the terminal under the agreement.

The details: The AD Ports Group-led JV will roll out improvements to the port’s infrastructure and superstructure over a 10-year timeframe, with most of the work slated for 2026, according to the statement. Improvements will include the deepening of berths, extensions to quay walls, and upped container storage area. Following the planned overhauls, facilities at the port will be equipped to handle Post Panamax vessels up to 8.5k TEUs and container capacity will be boosted from 750k to 1 mn TEUs a year.

Ownership breakdown of the JV: AD Ports Group will be the JV’s majority shareholder, the statement said, without providing an exact breakdown. The value of the investments lined up for the port was also not disclosed in the statement.

Background: The finalized agreement comes on the heels of an MoU inked between Pakistan and the UAE in May which paved the way for AD Ports to contribute to developing Pakistani ports, and saw both countries commit to closer trade ties. Last week saw reports that the UAE and Pakistan were close to an understanding on the port, with Pakistani Finance Minister Mohammad Ishaq Dar stating that a committee had been put together to work on drafting an agreement. d increasing efforts in the development, expansion, and digitalisation of port projects within Pakistan.

The two sides also signed three MoUs on rail, freezones, and digitalization: The agreements will see AD Ports Group support Pakistan in the design, study, and implementation of a range of logistical infrastructure projects that aim to boost efficiency, reduce costs, and enhance competitiveness at Karachi’s port and other sites, the statement said. The projects include upgrading the connectivity of Karachi Port to railway systems in the country; developing, operating, and managing industrial and freezone facilities in the Port Qasim area; and developing digital trade and logistics solutions, including customs digitalization.

What they said: “This milestone agreement will bolster the terminal's capacity, further enhancing its attractiveness to international trade partners to contribute to the growth of Karachi's position as a key player in the global trade industry,” UAE’s Foreign Trade Minister, Thani bin Ahmed Al Zeyoudi, said. “AD Ports Group is not only investing in the development of the Karachi Gateway Terminal but also setting the stage for greater cooperation and mutual benefit between the UAE and Pakistan,” he added.

AD Ports Group has been on an expansion spree: The UAE-based port operator’s expansion into Pakistan comes less than a week after it announced a 30-year concession agreement it signed with the Congo to run a terminal at the country’s Pointe-Noire Port. AD Ports had concluded yet another concession agreement in mid-March, which granted it the rights to develop and operate a port on Egypt’s Red Sea coast at Safaga.

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