The new agreement builds on AD Port’s previous deal covering berths 6-10 at the port’s East Wharf in June 2023. Credit: @GovtofPakistan via Twitter/X

The UAE’s AD Ports Group is extending its presence at Karachi Port in Pakistan, with a new agreement for bulk and cargo operations granting it full operational control of the port’s East Wharf. 

The 25-year concession agreement signed with the Karachi Port Trust will see AD Ports operate berths 11-17 through a joint venture with another UAE-based company, Kaheel Terminals, and builds on AD Ports’ agreement signed last year for berths 6-10. 

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Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports, said: “By extending our cooperation with Karachi Port Trust and investing in key maritime trade routes for the UAE, AD Ports Group is reaffirming its commitment towards strengthening its connectivity within the region. 

“We aim to transform Karachi Port into a dynamic hub for global trade, equipped with leading-edge infrastructure and innovative digital solutions.” 

The Karachi Gateway Terminal Multipurpose Limited joint venture is planning to invest around $75m into the berths across the first two years of operation, with a further $100m investment planned within five years. 

The agreement covers the 800m of quay for the container terminal as well as 1,500m of additional quay wall for general cargo and bulk operations for the terminal, which has previously handled about 8 million tons of cargo per annum. 

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AD Ports expects the new agreement to generate revenue of about $30m in the short term with general cargo operations at the terminal to primarily handle steel, paper, and clinker while the clean bulk terminal will mainly see grains and fertilisers. 

Karachi is just one of many ports near and around the UAE that has seen investment from AD Ports in recent years as the company seeks to expand its presence across vital trade routes. 

In March 2023, the company signed a 30-year concession agreement on the development and operation of a terminal at Egypt’s Safaga Port.