AD Ports Group, Pakistan ink MoUs to enhance transport, logistics sectors

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AD Ports Group has entered into a series of significant agreements with the government of Pakistan, aimed at expanding the UAE-based company’s footprint in the country’s growing transportation and logistics sectors.

In a series of memoranda of understanding (MoUs) signed in Islamabad, the two parties agreed to collaborate on key areas including maritime shipping, air transport, rail logistics and digital services.

The MoUs were formalised in the presence of senior officials from both countries, including Pakistan’s Prime Minister Muhammad Shehbaz Sharif and UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi.

The agreements establish a framework for exploring a broad range of initiatives that could enhance the country’s transport infrastructure.

This includes improving digital customs systems, creating dedicated freight rail corridors, upgrading Pakistan’s maritime fleet and port facilities, and optimising airport logistics services.

By identifying and developing these opportunities, AD Ports Group aims to expand its already significant presence in Pakistan, which remains a key trade gateway for the Middle East, Central Asia, and Russia.

Strengthening trade and investment ties

The countries share a longstanding and strong economic relationship.

Over the last two decades, UAE investment in Pakistan has exceeded $10bn, with the UAE-Pakistan trade volume reaching $7.9m in 2023. The new MoUs are expected to take this partnership to the next level by deepening collaboration in transport and logistics, sectors critical to Pakistan’s long-term economic growth.

Dr Thani bin Ahmed Al Zeyoudi highlighted the strategic nature of the agreements, noting that the new phase of collaboration will not only benefit the business communities of both countries but will also contribute to sustainable development efforts and regional economic integration.

He emphasised that the UAE and Pakistan are aligned in their vision to advance trade relations and elevate their partnership in vital sectors.

Expansion of AD Ports Group’s investments in Pakistan

The new MoUs build on a series of recent developments, including AD Ports Group’s ongoing investments in Pakistan’s infrastructure. The company’s partnership with Kaheel Terminals has already seen significant investments aimed at modernising Karachi Port, Pakistan’s busiest port.

In February, AD Ports Group secured a 25-year concession agreement with the Karachi Port Trust (KPT) to develop and operate several key bulk and general cargo terminal berths at Karachi Port. As part of this agreement, the Group committed to investing $75m over two years, with an additional $100m planned within five years to increase terminal capacity by 75 per cent.

Earlier, in June 2023, AD Ports Group entered a 50-year agreement with KPT to develop, operate, and manage the Karachi Gateway Terminal Limited (KGTL) container terminal. With an investment of $220m over ten years, the project will significantly increase the terminal’s capacity, enabling it to handle up to 14 million tonnes of cargo annually.

These efforts are expected to drive growth in Pakistan’s trade and logistics sectors while enhancing its connectivity with global markets.

Advancing regional connectivity and trade

Captain Mohamed Juma Al Shamisi, CEO of AD Ports Group, emphasised the company’s commitment to enhancing regional connectivity and supporting Pakistan’s trade ambitions.

He said, “With these MoUs, we aim to identify and pursue growth opportunities that will not only strengthen the UAE-Pakistan relationship but also support Pakistan’s growing role as a strategic trade partner in the region.”

The new agreements also highlight the ongoing importance of digital transformation in enhancing operational efficiency.

AD Ports Group’s focus on integrating cutting-edge technologies, including artificial intelligence and data analytics, will be critical in the optimization of Pakistan’s logistics operations, further bolstering the country’s competitiveness in global trade.

As AD Ports Group continues to expand its operations in Pakistan, the agreements set the stage for a more robust and sustainable partnership that could help drive future economic growth for both nations.