Abu Dhabi – Mubasher: AD Ports Group has signed a new concession deal with Pakistani federal government agency Karachi Port Trust (KPT) for bulk and general cargo operations.

Under the 25-year concession agreement, Karachi Gateway Terminal Multipurpose Limited (KGTML), a joint venture (JV) between AD Ports and Kaheel Terminals, will develop, operate, and manage the bulk and general cargo terminal berths 11-17 at Karachi Port’s East Wharf.

The partnership aims to further boost Karachi’s position as a key player in the maritime industry, according to a press release.

It also builds upon the concession deal secured by AD Ports in June 2023 to develop, operate, and manage Karachi Gateway Terminal Limited (KGTL) container terminal berths 6-10 at Karachi Port’s East Wharf.

General cargo operations will initially manage steel, paper, and clinker, while the clean bulk terminal will focus on grains and fertilisers.

Besides the 800-metre quay for the container terminal, the new concession grants the JV 1,500 metres of additional quay wall for general cargo and bulk operations adjacent to the container terminal.

In this regard, the partnership secures full operational control of Karachi Port’s East Wharf.

Meanwhile, the JV plans to invest nearly $75 million in the first two years, including upfront fees and prepayments in superstructure and equipment, followed by further investment of $100 million within five years which will be used to boost efficiency and capacity by 75%. This will allow the terminal to handle up to 14 million tonnes per annum.

As part of the contract, the JV will take over East Wharf’s existing operations, ensuring the transaction will be profitable immediately upon completion.

Thani bin Ahmed Al Zeyoudi, the UAE’s Minister of State for Foreign Trade, said: “We look forward to continuing to work with the Pakistani side to foster industrial growth, and unlock new avenues for investment and economic development, whilst realising our wise leaders’ shared vision of progress and prosperity.”

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports, said: “By extending our cooperation with Karachi Port Trust and investing in key maritime trade routes for the UAE, AD Ports is reaffirming its commitment towards strengthening its connectivity within the region.”

“We aim to transform Karachi Port into a dynamic hub for global trade, equipped with leading-edge infrastructure and innovative digital solutions,” Al Shamisi underlined.

The bulk and general cargo terminal, which has been handling around 8 million tonnes on an annual basis, is expected to generate revenue of around $30 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of around $10 million annually in the short term.

In the first nine months (9M) of 2023, the ADX-listed group logged net profits attributable to the owners valued at AED 997.72 million, an annual increase from AED 917.05 million.