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Another Pakistani terminal — or two — for AD Ports?Pakistan has given its initial approval to a framework agreement that would see the country hand over the development, management, and operation of a second terminal at Karachi Port to the UAE, according to a Finance Ministry statement. The agreement is expected to be signed by the two governments “very soon,” Pakistani outlet the Tribune reports. The two sides earlier this week agreed to negotiate an agreement over the terminal, though a new report from the Tribune mentions a second terminal up for grabs.
The details: The agreement will see Pakistan handover berths 11 to 17 at Karachi Port’s East Wharf to AD Ports Group to develop and manage two cargo terminals for an initial five-year period, the Tribune reports. The agreement could be extended beyond five years further down the road, the outlet added.
About the terminals: Berths 11 to 13 are earmarked for a general cargo terminal, while berths 14 to 17 are slated for a terminal equipped to process foods, fertilizers, and other commodities. Upgrades to Pakistan International Container Terminal (PICT) and improvements to infrastructure are also included in the agreement.
This is the second Emirati-Pakistani agreement in as many months: The two governments had signed a 50-year concession agreement to hand AD Ports Group control to “manage, operate, and develop” another terminal at Karachi’s port.
What’s next: Following cabinet approval for the framework, Pakistan will put together a price negotiation committee, the Tribune said. Several parameters are expected to factor into pricing, including terms governing construction, lifespan, capacity, length of quay wall, as well as other factors, the Tribune cites officials at the country’s Maritime Affairs Ministry as saying.
Background: The agreements come 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.
AD Ports Group has been on an expansion spree: Last month also saw the Emirati company announce a 30-year concession agreement it had signed with the Congo to run a terminal at the country’s Pointe-Noire Port. Yet another concession agreement came in mid-March, granting AD Ports Group the rights to develop and operate a port on Egypt’s Red Sea coast at Safaga.
