UAE's AD Ports To Fund USD 220 million in Karachi Gateway Terminal

The Karachi Gateway Terminal Limited (KGTL), which is located at berths 6–9 at the Port of Karachi, will receive $220 million in new concession and growth capital investment during the first ten years from the joint venture between AD Ports Group and Kaheel Terminals, according to a company spokesman.

Over the course of the ten years, the joint entity will invest mostly in infrastructure and superstructure, with 2026 being the year of greatest investment. Leading port operator in the United Arab Emirates, Abu Dhabi Ports (AD Ports), and the Karachi Port Trust (KPT) inked a 50-year concession deal in June of last year for the management of the KGTL.

As per the proposal, the port will be capable of handling Post Panamax class boats of up to 8,500 twenty-foot equivalent units (TEUs), increasing yearly container capacity from 750,000 to 1 million TEUs. Annually, the terminal generates roughly $55 million in revenue and approximately $30 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).

"The AD Ports Group is ready to invest $220 million in the container terminal over the next decade. With an additional $175 million earmarked for the multi-purpose terminal, the investment reflects GTL’s confidence in Karachi’s potential as a key gateway for global trade," Raheel Monis, manager of marketing and commercial at KGTL, added.

"The strategic alliance between the Ports Group and KPT is poised to open up new opportunities for economic development and trade expansion not only for Karachi but for the entire region."