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Pakistan leases Karachi Port Trust terminal to UAE group for 50 years

10:49 PM | 22 Jun, 2023
Pakistan leases Karachi Port Trust terminal to UAE group for 50 years
Source: Sindh Governor House

KARACHI – A leading UAE port operator has signed a 50-year concession agreement with Pakistan to operate a terminal at the Karachi Port Trust (KPT).

As cash-strapped Pakistan seeks external financing to stave off an economic meltdown, the AD Ports Group has signed an important investment deal with the KPT. 

As per the agreement, a joint venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, has been formed to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL) berths 6-9 at Karachi Port’s East Wharf.  

The venture will feature significant investments in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026. The development works will include deepening of the berths, extension of quay walls, and an increase in container storage area. As a majority shareholder, AD Ports Group would invest $220 million in new concession and growth capital expenditure over the first 10 years.  

“This expansion and enhancement will further cement the terminal and Karachi's position as a key player in the maritime industry," AD Ports said in a statement. "The Terminal’s operations are all dollarised with no foreign exchange exposure to the Pakistani rupee."   

The additional capital would allow the terminal to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) while its container capacity would increase from 750,000 to 1 million TEUs per annum. 

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.  

Though the offer's details have not been made public, people familiar with the development said the UAE has offered to acquire the terminal for 50 years on lease under which the company would pay around $21 million in fee for the occupancy of berths and royalty and will pay up to $50 million for the current infrastructure.  

Under the agreement, the KPT, the largest seaport in Pakistan, will earn around $25 million per year based on the flow of container traffic, according to a KPT official who declined to be named. 

Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group, said the agreement exemplifies the company's strategy of investing in key maritime trade routes for the UAE. 

“This agreement has the potential to unlock a new chapter of growth and progress for both the UAE and Pakistan, enabling us to strengthen ties with key trading nations and leading to increased economic growth and prosperity”, he added.  

Daily Pakistan Global Web Desk

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Pakistani rupee rate against US Dollar, Euro, Pound, Riyal - Check 14 April forex rates

Pakistani currency remains unchanged against US dollar and other currencies in open market on April 14, 2024.

US Dollar rate in Pakistan

On Sunday, the US dollar was being quoted at 277.5 for buying and 280.5 for selling.

Euro was quoted at 299.95 for buying and 302.9 for selling while British Pound stands at 349.5 for buying, and 353 for selling.

UAE Dirham AED was at 75.45 and Saudi Riyal's new rates was at 73.30. 

Today’s currency exchange rates in Pakistan - 14 April 2024

Source: Forex Association of Pakistan. (last update 08:00 AM)
Currency Symbol Buying Selling
US Dollar USD 277.5 280.5
Euro EUR 299.95 302.9
UK Pound Sterling GBP 349.5 353
U.A.E Dirham AED 75.45
 
76.2
Saudi Riyal SAR 73.3 74.05
Australian Dollar AUD 182.7 184.5
Bahrain Dinar BHD 739.38 747.38
Canadian Dollar CAD 204 206.2
China Yuan CNY 38.45 38.85
Danish Krone DKK 40.45 40.85
Hong Kong Dollar HKD 35.57 35.92
Indian Rupee INR 3.33 3.44
Japanese Yen JPY 1.86
 
1.94
Kuwaiti Dinar KWD 903.91 912.91
Malaysian Ringgit MYR 58.92 59.52
New Zealand Dollar NZD 167.63 169.63
Norwegians Krone NOK 25.38 25.68
Omani Riyal OMR 722.1 730.1
Qatari Riyal QAR 76.35 77.05
Singapore Dollar SGD 206 208
Swedish Korona SEK 25.72 26.02
Swiss Franc CHF 307.11 309.61
Thai Bhat THB 7.61 7.76

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