Pakistani and the United Arab Emirates officials, on April 22, performed the groundbreaking of a $175 million Bulk and General Cargo terminal, describing the project as an “important breakthrough” for Pakistan’s maritime sector.
Pakistan and the UAE entered a government-to-government agreement earlier this year, following which, under which a 25-year concession agreement was signed in February between AD Ports Group and Karachi Port Trust (KPT) to outsource operations of the bulk and general cargo terminal.
Karachi Gateway Terminal Multipurpose Limited (KGTML), a joint venture between AD Ports Group and UAE-based company Kaheel Terminals, will lead the development, operation, and management of the terminal, comprising of berths 11 to 17 at Karachi Port’s East Wharf.
Pakistan’s Minister of Maritime Affairs, Qaiser Ahmed Sheikh, was present at Karachi Port to unveil the KGTML plaque. He underscored the UAE’s investment as a “very important breakthrough” that has increased the interest of other maritime stakeholders.
“This investment from Abu Dhabi Ports is very important for Pakistan, it is a breakthrough,” Sheikh told a news agency at the sidelines of the event. “It is the first investment in the terminal and following this, there are many other companies who are also interested in Pakistan.”
“We are looking forward to investment from other companies like, you see, other shipping lines,” Sheikh added. “We are having a meeting (on Apr. 25) with Maersk Line and we are also expecting (investment).”
CEO KGTL Khurram Aziz Khan, CEO Fujairah Terminals Abdulaziz Al Balooshi, Chairman KPT, Syed Syedain Raza Zaidi, Chairman BMG & CE TDAP Zubair Motiwala and Consul General UAE in Karachi Bakheet Ateeq Al Remeithi also spoke on the occasion.
Khurram Aziz Khan, CEO of KGTL, said AD Ports intends to invest approximately $175 million in the bulk terminal’s development, which will handle various types of bulk cargo.
“This is basically a multi-purpose terminal which will not only handle grains but also fertilizers and other kinds of export and import, dirty or clean cargo as well,” Khan stated.
He highlighted the long-term vision of making Karachi a regional hub for containers and multifaceted facilities, ultimately streamlining business operations.
Container and cargo terminals
In addition to the bulk terminal, AD Ports Group plans to invest a total of $395 million in developing container and cargo terminals.
“We have an overall plan of $220 million investment in the container terminal and $175 million of investment in the multi-purpose bulk terminal,” Khan said, telling the details of the investment breakdown.
AD Ports Group also presented a cheque of $50 million to KPT as an upfront fee, as per the terms of the Outsourcing of Operations of Bulk and General Cargo Terminal Agreement.
“Progress will be made through investment in the supply chain,” Abdul Aziz Baloshi, CEO of Fujairah Terminals said at the event. “Karachi port is the future of Pakistan and Pakistan is included in our priority list in the region.”
Other areas of UAE’s interest
UAE’s Consul General, Bakheet Atiq Al-Remeithi, emphasized the burgeoning interest of Emirati investors in Pakistan. He outlined areas of interest, which encompass ports, shipping, railways, and broader infrastructure.
The Consul General of the UAE, Bakheet Atiq Al-Remeithi, highlighted the growing interest of Emirati investors in Pakistan. He outlined key sectors of interest, including ports, shipping, railways, and broader infrastructure development.
“Apart from port investments, investments will be made in railway infrastructure, export zones, and other sectors,” Al-Remeithi shared