KARACHI: AD Ports Group of the United Arab Emirates (UAE) has signed an agreement on Thursday to take over the running of part of Pakistan’s main Karachi docking facility in a deal worth an immediate $220 million, the company announced.
According to AFP, the deal is set to provide a much-needed boost to Pakistan, as its economy teeters on the brink of collapse and the government seeks substantial foreign investment to manage its crippling debt.
AD Ports Group has established a joint venture with another UAE company, Kaheel Terminals, to assume control of berths from Karachi Port Trust (KPT), the state-owned handling agency.
Karachi Port, Pakistan’s oldest and busiest port with 33 berths, will see four of its berths leased to the joint venture for the next 50 years as part of the UAE agreement.
An AD Group statement explained, “The joint venture will make significant investments in infrastructure and superstructure over the next 10 years.” The plans include deepening the berths to accommodate larger ships, extending the quay wall, and expanding the container storage area.
Consequently, the terminal will have the capacity to handle vessels capable of carrying up to 8,500 containers, and its overall capacity will increase from 750,000 to one million containers annually, the statement outlined.
The majority of the development is scheduled to take place in 2026.
The UAE has been a significant contributor to Pakistan’s economy through grants, loans, and direct investments, previously rescuing a government that has faced the imminent risk of defaulting on its debt for several months.
