[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]KARACHI: Federal Minister for Maritime Affairs Faisal Sabzwari announced on Friday that the UAE’s Abu Dhabi Ports (AD Ports) will pay $50 million upfront to the Karachi Port and will invest $102 million in expansion over the next three to five years, as part of a deal reached between AD Ports and the Karachi Port Trust (KPT).
Sabzwari stated at a news conference that AD Ports will invest in reinforcement and restructuring by acquiring more land. “It will increase revenue and royalty for the country, and per box movement will increase by 12.5 percent,” Subzwari said.
AD Ports, the biggest UAE port operator, and Karachi Port Trust (KPT) announced a 50-year concession agreement to operate a terminal in the city.
The Pakistan International Container Terminal (PICT) will be managed, operated, and developed by a joint venture (JV) between AD Ports Group, as the majority shareholder, and Kaheel Terminals, a UAE-based company formed to manage, operate, and develop the Karachi Gateway Terminal Limited (KGTL) berths 6-9 at the port’s East Wharf.
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The federal minister stated that this agreement will enhance our revenue by at least $5 million to $7 million per year, and we will see even more revenue as they attract additional business to that specific container terminal.
According to the deal, the KPT will earn a royalty of $18 per container. The minister stated that JV will make considerable investments in infrastructure and superstructure during the next ten years. According to the deal, the KPT will earn a royalty of $18 per container. According to AD Port, the minister stated the JV will make considerable investments in infrastructure and superstructure over the next ten years, with the most of it slated for 2026.
Berths will be deepened, quay walls will be extended, and the container storage area will be expanded as part of the development work.
As a result, the port will be able to receive Post Panamax class boats with capacities of up to 8,500 TEUs (Twenty-Foot Equivalent Units), and container capacity will grow from 750,000 to 1 million TEUs per year. This extension and improvement will solidify the terminal’s and Karachi’s status as a significant participant in the maritime industry, he said.
Sabzwari stated that the company is interested in expanding its berths at the Karachi Port, as well as the Karachi Port to Port Qasim railway connectivity network and the Port Qasim industrial park. So, all total, he added, that represents a more than $2 billion show of interest.
Sabzwari described the introduction of AD Port in Pakistan as a significant step for the country’s maritime economy. “The footprint of Abu Dhabi port at Karachi port is itself very significant,” Sabzwari explained.
The minister believed that the arrival of AD Port will also aid Karachi Port’s financial health by increasing revenue.
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