The United Arab Emirates will invest $102 million over five years to develop and operate a bulk and general cargo terminal at Karachi port. 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 for the handling of one of its port terminals in Karachi.
Under the agreement, the Pakistan International Container Terminal (PICT) has been handed over to a joint venture (JV) between AD Ports Group, a majority shareholder, and Kaheel Terminals, a UAE-based company, formed to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL) at berths 6-9 at Karachi Port’s East Wharf.
The joint venture will see an investment of $220 million in Pakistan over the first 10 years.
“It was briefed that the concession periods for the agreement is 25 years with USD 18.00 per cross berth move and a ground rent of PKR 1,100 square meters per annum and upfront payment of USD 50 M,” the minutes of the meeting revealed.
Pakistan says the handling of its port terminal by the Abu Dhabi Ports will increase the South Asian’s nation’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 over the next 10 years, with the bulk of it planned for 2026, according to AD Ports. Development works 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 TEUs (Twenty-Foot Equivalent Units) and container capacity will increase from 750,000 to 1 million TEUs per annum.
The UAE port operator had also expressed interest in investing an additional $2 billion in Pakistan, including in a railway link between the country’s two main ports.
