AD Ports signs concession agreement to manage Karachi Gateway Terminal

By Arya M Nair, Official Reporter
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AD Ports_Karachi Trust Port partnership
Officials at agreement signing

AD Ports Group has signed a 50-year concession agreement with Karachi Port Trust (KPT), the Pakistani federal government agency that oversees the operations of the Port of Karachi.

Under the 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.

The JV with AD Ports Group as majority shareholder will invest $220 million in new concession and expects growth CapEx over the first 10 years, with the bulk of it planned for 2026. The development works will include the deepening of berths, an extension of quay walls, and an increase in the container storage area.

As a result, the terminal will be able to handle Post Panamax class vessels of up to 8,500 Twenty-foot Equivalent Units (TEUs) and container capacity will increase from 750,000 TEUs to 1 million TEUs per annum. This expansion and enhancement will further cement the terminal and Karachi’s position as a key player in the maritime industry.

Captain Mohamed Juma Al Shamsi_AD Ports_Karachi Terminal concession agreement
Capt. Mohamed Juma Al Shamsi
MD & Group CEO
AD Ports Group

“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, exemplifies 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.”

AD Ports Group has also signed three Memorandum of Understanding (MoU) 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.

AD Ports Group will provide technical expertise, advice, and support to the Government of Pakistan for the planning, design, and implementation of trade, customs and logistics infrastructure projects within Pakistan. The MoUs are;

Rail Connectivity

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

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

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

Mr. Syed Syedain Raza Zaidi, Chairman of Karachi Port Trust, said that “This landmark agreement between AD Ports Group 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.”

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