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Sunday May 19, 2024

UAE’s AD Ports set to invest $220 million in Karachi Gateway Terminal, eyes expansion

The joint entity will invest in infrastructure and superstructure during the 10-year period

By Our Correspondent
April 09, 2024
A security personnel stands guard beside a ship carrying containers during the opening of a trade project in Gwadar port. — AFP/File
A security personnel stands guard beside a ship carrying containers during the opening of a trade project in Gwadar port. — AFP/File

KARACHI: The AD Ports Group and Kaheel Terminals' joint venture (JV) will inject $220 million in new concession and growth capital expenditure over the first 10 years into the Karachi Gateway Terminal Limited (KGTL), berths 6-9 at the Port of Karachi, a company official said.

The joint entity will invest in infrastructure and superstructure during the 10-year period, with the bulk of it planned for 2026.The UAE’s Abu Dhabi Ports (AD Ports), a leading port operator, signed a 50-year concession agreement with the Karachi Port Trust (KPT) in June last year for the handling of the KGTL.

According to the plan, 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. On an annual basis, the terminal has been generating revenue valued at nearly $55 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) worth about $30 million.

"The AD Ports Group is ready to invest $220 million in the container terminal over the next decade. With an additional $175 million earmarked for the multi-purpose terminal, the investment reflects GTL’s confidence in Karachi’s potential as a key gateway for global trade," Raheel Monis, manager of marketing and commercial at KGTL, told a group of reporters on Friday.

"The strategic alliance between the Ports Group and KPT is poised to open up new opportunities for economic development and trade expansion not only for Karachi but for the entire region."

"With a shared vision of excellence and progress, this collaboration marks an important step in realizing Karachi’s potential as a leading maritime destination."Pakistan expects the handling of its port terminal by the Abu Dhabi Ports will increase the country's revenue generation by up to $7 million a year and pave the way for an additional $2 billion investment in its maritime sector.

The joint venture will include significant investments in infrastructure and superstructure. Development works include the deepening of berths, an extension of quay walls, and an increase in the container storage area.

Monis said the deal marks the beginning of a transformational era of collaboration and investment."KGTL’s commitment to the development of Karachi Port is evident with the signing of two major concession agreements for the container terminal and the multi-purpose terminals and its major investment projects."