KGTL completes dredging project as part of infrastructure investment push

KGTL makes headway at Karachi Port: Karachi Gateway Terminal (KGTL) — a JV by the majority shareholder AD Ports and UAE-based Kaheel Terminals — has completed a USD 60 mn dredging project at Karachi Port and is now preparing a new investment phase focused on container handling capacity, bulk export infrastructure, warehouses, silos, and automation. The company is planning up to USD 100 mn in new investments over the next five years as it seeks to capitalize on cargo flows redirected during the Iran conflict.

BACKGROUND- The JV secured a 50-year concession from Karachi Port Trust to operate and develop container berths on the East Wharf in 2023. AD Ports then expanded its presence at the port in 2024 through a separate 25-year concession agreement for more berths, with plans to invest some USD 75 mn in the first two years in port infrastructure and equipment.

Bigger ships, faster turnaround: The dredging project is expected to double the size of bulk vessels Karachi can accommodate to some 120k tons, up from 60k tons, while also upgrading bulk-handling facilities to cut turnaround times for a 60k-ton vessel to as little as three days from as much as two weeks currently.

The expansion goes beyond the port itself, with investments in rail freight infrastructure, including locomotives, rolling stock, and inland storage facilities near agricultural production areas. The goal is to create an integrated logistics chain linking farms to export terminals and lowering transport costs for commodities, including rice and corn.

This is becoming a familiar playbook across emerging logistics hubs: Use a geopolitical disruption to attract cargo, then invest fast enough to keep it after trade routes normalize. The real competition is no longer between ports alone, but between entire logistics corridors.