UAE port operator AD Ports Group signed a 50-year concession agreement with the Karachi Port Trust (KPT) on Thursday to operate a terminal in the city.
Under the terms of the agreement, a Joint Venture (JV) will be formed between AD Ports Group and Kaheel Terminals.
AD Ports will be the majority shareholder, investing $220 million in new concession and growth CapEx over the first 10 years. Meanwhile, Kaheel is a UAE-based company formed to manage, operate and develop KGTL at berths 6 to 9 at Karachi Port’s East Wharf.
“The JV will undertake significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026,” read a statement.
“The development works will include deepening of berths, extension of quay walls, and an increase in 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 statement added.
Historically, the terminal has been generating a whopping revenue of around $55 million and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) or around $30 million annually.
