UAE’s AD Ports signs 25-year concession deal with Karachi Port Trust

UAE’s AD Ports Group has signed a 25-year concession agreement with Karachi Port Trust to develop, operate and manage the bulk and general cargo terminal berths 11 to 17 at Karachi Port’s East Wharf.

Karachi Gateway Terminal Multipurpose, a joint venture between AD Ports and Kaheel Terminal, will take over East Wharf’s existing operations as part of the deal.

The venture will invest as much as $75m (Dhs275m) in the first two years, including upfront fees, prepayments and investments in superstructure and equipment as part of the deal.

It will invest a further Dhs367m within the next five years, which will be used to increase efficiency and capacity by 75 per cent, enabling the terminal to handle up to 14 million tonnes per annum.

The bulk and general cargo terminal, which has been handling around 8 million tonnes per annum historically, is expected to generate revenue of more than Dhs100m and EBIDTA of over Dhs36m annually in the short term.

“We aim to transform Karachi Port into a dynamic hub for global trade, equipped with leading-edge infrastructure and innovative digital solutions. AD Ports remains aligned with our wise leaders’ vision and will continue to spearhead strategic partnerships that drive economic diversification,” said Mohamed Juma Al Shamisi, managing director and Group CEO of AD Ports Group.

The deal grants Karachi Gateway 1,500 meters of additional quay wall for general cargo and bulk operations. General cargo operations will primarily handle steel, paper and clinker, while the clean bulk terminal will focus on grains and fertilisers.

It builds upon the concession agreement signed between the two entities to develop, operate and manage Karachi Gateway Terminal Limited container terminal berths 6 to 10 at Karachi Port’s East Wharf last June.

AD Ports expands global reach

Meanwhile, the Abu Dhabi-listed logistics firm continues to expand its presence in major trade regions and maritime routes, investing in developing ports as part of its broader strategy to enhance global trade and support economic diversification in the UAE.

Last month, AD Ports said its subsidiary Maqta Gateway will hold a 51 per cent shareholding in Maqta Ayla, a joint venture with Jordan’s Aqaba Development Corporation that will digitise Aqaba port operations with port community system (PCS).

The PCS will facilitate communications and transactions between the Ports of Aqaba, its terminal operators, the Aqaba Special Economic Zone Authority, ADC, and other stakeholders within the port’s ecosystem.

Furthermore,  Noatum Group, a unit of the Abu Dhabi-based logistics giant, fully acquired APM Terminals Castellón in Spain for an enterprise value of EUR10m earlier in January.

The deal allows the Spanish firm to expand its operational capacity for bulk, general cargo, and container processing while maintaining APM Terminals’ third-party services at this location.

Noatum Group’s acquisition follows a string of deals and agreements as AD Ports seeks to become a more diversified, integrated logistics company.

The shipping and logistics group posted Dhs4.24bn in third-quarter revenue, a 189 per cent year-on-year increase while its net profit surged by 20 per cent to Dhs403m.

Read: AD Ports Group’s Maqta Gateway to digitalise Aqaba port operations