AD Ports to invest $150m to upgrade Karachi cargo port 

Wam

The UAE’s AD Ports Group has signed an agreement for bulk and general cargo operations with the Pakistani-government-backed Karachi Port Trust (KPT), allocating $150 million for the port expansion.

Under the terms of the 25-year concession agreement, Karachi Gateway Terminal Multipurpose Limited (KGTML), a joint venture between AD Ports Group, a majority shareholder, and UAE-based Kaheel Terminals, will develop, operate and manage the bulk and general cargo terminal berths 11-17 at Karachi Port’s east wharf, the UAE state-run Wam news agency reported.

This agreement come after AD Ports Group signed a concession agreement in June 2023 to develop, operate and manage Karachi gateway terminal’s container berths 6-10 at Karachi Port’s east wharf.

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In addition to the 800 m quay for the container terminal, the new concession will grant the joint venture 1,500 m of additional quay wall for general cargo and bulk operations adjacent to the container terminal, giving complete operational control of Karachi Port’s east wharf to the UAE venture. 

General cargo operations will primarily handle steel, paper and clinker, while the clean bulk terminal will focus on grains and fertilisers.

KGTML plans to invest $75 million in the first two years, including upfront fees, prepayments and investments in superstructure and equipment. This will be followed by further investment of $100 million within five years, which will be used to increase efficiency and capacity by 75 percent, enabling the terminal to handle up to 14 million tonnes per annum.

The bulk and general cargo terminal, which has been handling around eight million tonnes per annum, is expected to generate revenue of $30 million and Ebidta of $10 million annually in the short term.

“We aim to transform Karachi Port into a dynamic hub for global trade,” said Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group.