Abu Dhabi – Mubasher: AD Ports Group has inked a 50-year concession agreement with Pakistani federal government agency Karachi Port Trust (KPT), according to a press release
Under the deal, AD Ports and Kaheel Terminals formed a joint venture (JV) to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL), berths 6-9 at the Port of Karachi.
The ADX-listed group, which is the majority shareholder in the JV, will inject $220 million in new concession and growth capital expenditure (CapEx) over the first 10 years.
The joint entity will invest in infrastructure and superstructure during the 10-year period, with the bulk of it planned for 2026.
Accordingly, the terminal will be able to handle Post Panamax class vessels of up to 8,500 twenty-foot equivalent units (TEUs) and the annual container capacity will increase from 750,000 to 1 million TEUs.
It is worth highlighting that the terminal’s operations are all dollarised with no foreign exchange exposure to the Pakistani Rupee.
On an annual basis, the terminal has been generating revenue valued at nearly $55 million and earnings before interest, taxes, depreciation, and amortisation (EBIDTA) worth about $30 million.
Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports, commented: “This 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,” Al Shamisi continued.
Syed Syedain Raza Zaidi, Chairman of Karachi Port Trust, said: “This landmark agreement between AD Ports and KPT marks a significant milestone and holds big potential for the growth and development of Karachi Port.”
“By joining forces, we are paving the way for a thriving container terminal that will enhance efficiency, attract investment, and stimulate the economy,” Zaidi added.
Last week, AD Ports announced an agreement with the government of Congo for the multipurpose New East Mole Terminal in Pointe-Noire, under which the former will invest over $500 million.
In the first quarter (Q1) of 2023, the UAE group logged net profits attributable to the owners amounting to AED 330.93 million, up 9% year-on-year (YoY) from AED 304.92 million.
