ABU DHABI : AD Ports Group, a global leader in trade, logistics, and industry, announced the signing of a concession agreement with Karachi Port Trust (KPT), the Pakistani federal government agency that oversees the operations of the Port of Karachi.

Under the terms of the 50-year concession agreement, a Joint Venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company has been formed to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL), berths 6-9 at Karachi Port’s East Wharf. JV with AD Ports Group as majority shareholder to invest $220 million in new concession and growth CapEx over the first 10 years

This strategic agreement follows the signing in May this year of a Memorandum of Understanding, which inked both entities shared vision to drive growth, promote trade diversification, and strengthen bilateral ties between the UAE and Pakistan. 

AD Ports Group has also signed three MoUs with the Government of Pakistan to establish a framework for cooperation in improving transportation infrastructure, facilitating efficient cargo movement, reducing logistics costs, and enhancing the competitiveness of Karachi Port or any other projects of mutual interest. The Group will provide technical expertise, advice, and support to the Government for the planning, design, and implementation of trade, customs and logistics infrastructure projects within Pakistan.

Rail Connectivity MoU
Under this MoU, the parties have agreed to collaborate under a bilateral framework of mutual cooperation to develop and upgrade the connectivity of Karachi Port to the railway systems.

Free Zone MoU
This MoU establishes a cooperative relationship between AD Ports and Port Qasim Authority for the development, operation, and management of industrial and/or free zone facilities in the Port Qasim area.

Digital Solutions MoU
Under this MoU, AD Ports Group and the Government of Pakistan will cooperate to develop digital trade and logistics solutions including customs digitalisation.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group said, “AD Ports Group is delighted to embark on this landmark partnership with the Government of Pakistan. The signing of the concession agreement with Karachi Port Trust, and the three MoUs, exemplify AD Ports Group’s strategy of investing in key maritime trade routes for the UAE, replicating our successful integrated business model in regions that offer long-term, sustainable growth prospects.”

“The concession agreement, has the potential to unlock a new chapter of growth and progress for both the UAE and Pakistan, enabling us to strengthen ties with key trading nations and leading to increased economic growth and prosperity. We foresee significant opportunities ahead, together, in line with our wise leadership’s vision, we will redefine the maritime landscape and create value for all stakeholders.”

The UAE was Pakistan’s number one regional trading partner in 2021, accounting for over 40% of Pakistan’s trade with Arab countries, with non-oil exports from the UAE to Pakistan valued at nearly AED 4.8 billion ($1.3 billion) in 2022 according to Pakistan’s Ministry of State for Foreign Trade. Additionally, re-exports from the UAE to Pakistan amounted to AED 10.6 billion (US$ 2.9 billion), reflecting a 7.7% growth compared to 2021.