UAE’s AD Ports Group, a leading operator of industrial cities and free zones, has entered into a 50-year concession agreement with Pakistan’s federal agency Karachi Port Trust.
The agreement entails a joint investment of USD 220 mln to develop a new concession area at Karachi port, with AD Ports overseeing its growth during the initial decade.
According to the filing submitted to the Abu Dhabi Securities Exchange, AD Ports will serve as the majority shareholder in a joint venture with UAE-based Kaheel Terminals, tasked with managing, operating, and enhancing berths six to nine at the east wharf of Karachi Gateway Terminal.
Over the next ten years, the joint venture will embark on significant infrastructure and superstructure investments, with a major portion planned for 2026. The development works will encompass deepening the berths, extending quay walls, and expanding the container storage area. Once completed, the terminal will have the capacity to accommodate “post panamax” class vessels of up to 8,500 twenty-foot equivalent units (TEUs), while its annual container capacity will increase to one mln TEUs from the current 750,000.
In the fiscal year ending June 30, 2022, Pakistan’s exports to the UAE witnessed a significant YoY growth of 38pct to reach USD 1.38 bln, making the UAE the sixth-largest export destination for Pakistani exporters.
Concurrently, the UAE emerged as the second-largest exporting country to Pakistan, with exports amounting to USD 8.8 bln, up significantly by 61 pct YoY.
Pakistan’s major imports from the UAE include petroleum products and steel scrap, while the country exports textiles, food items, and agricultural products to the UAE.
