KARACHI: Federal Minister for Maritime Affairs Faisal Sabzwari said on Friday that Abu Dhabi Ports (ADPorts) of the United Arab Emirates will pay $50 million in advance to Karachi Port and under the agreement reached, the expansion will take place over the next three to five years. will invest 102 million dollars. Between AD Ports and Karachi Port Trust (KPT).
Addressing a press conference, Sabzwari said that AD Ports will acquire more area and invest in reinforcement and restructuring. “This will provide more revenue and royalty to the country as well as increase the movement per box by 12.5 percent,” Sabzwari said.
A 50-year concession agreement was signed between UAE’s leading port operator AD Ports and Karachi Port Trust (KPT) to operate a terminal in the city.
Under the agreement, Pakistan International Container Terminal (PICT) will be operated through a joint venture (JV) between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company that will manage, Designed to run and develop. Karachi Gateway Terminal Limited (KGTL) has 6-9 berths in the East Wharf of the port.
The federal minister noted that this agreement will increase our revenue by at least $5 million to $7 million annually and we will see more revenue when they attract more business to that particular container terminal.
Under the agreement, the minister said KPT will get $18 per container as royalty. The minister said the JV would make significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it slated for 2026, according to AD Port.
Development works include deepening of berths, extension of ditch walls and increase in container storage area.
As a result, the terminal will be able to handle post-Panamax class vessels of up to 8,500 TEUs (20-foot equivalent units) and container capacity will increase from 750,000 to 1 million TEUs annually. He said that this expansion and enhancement will further strengthen the terminal and Karachi’s position as a key player in the maritime industry.
Sabzwari said that the company has shown interest in more berths at Karachi Port, Karachi Port to Port Qasim railway connectivity network as well as industrial park at Port Qasim. So, in total, it’s an expression of interest of over $2 billion.
Sabzwari described the arrival of ADport in Pakistan as a very important development for the improvement of the country’s maritime sector. “The footprint of Abu Dhabi Port on Karachi Port is itself very significant,” Sabzwari said.
The Minister hoped that the arrival of AD Port would also help in improving the financial health of Karachi Port through revenue generation.
