The agreement will see a joint venture between AD Ports and Kaheel Terminals, Karachi Gateway Terminal Multipurpose Limited (KGTML), develop, operate and manage berths 11-17 at the East wharf of Karachi.
The new concession grants 1.5 km of quay wall to KGTML for general cargo and bulk operations, which primarily handles steel, paper and clinker general cargoes and grains and fertiliser in bulk.
KGTML plans to invest $75m in the first two years of the deal comprising upfront fees, prepayments and investments in superstructure and equipment. A further $100m of investment will follow within five years to boost efficiency and capacity by 75%, AD Ports claimed.
The Bulk and General Cargo terminal, has handled around 8m tonnes per annum and is expect to reach a capacity of 14m tonnes per annum post-investment. Revenue of around $30m and EBIDTA of around $10m are forecast in the short term, growing thereafter.
In June 2023, AD Ports was granted a concession for Karachi Gateway Terminal Limited (KGTL) container operations at 800 meters of quay at berths 6-10 on the East wharf; the signing of the latest deal for the adjacent berths gives the group full control over the East wharf.
Capt. Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group, said: “We aim to transform Karachi Port into a dynamic hub for global trade, equipped with leading-edge infrastructure and innovative digital solutions.”
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.
Add Seatrade Maritime News to your Google News feed.  |
