THE UAE-based AD Ports Group has signed a 50-year concession agreement with Karachi Port Trust (KPT) to operate Karachi Gateway Terminal Limited (KGTL) and invest $220 million (Rs63.129 billion) for infrastructure development in the first 10 years of the deal. Under the Joint Venture (JV) agreement, the proposed development works will include the deepening of berths, an extension of quay walls and an increase in the container storage area.
Pakistan and the United Arab Emirates (UAE) are already engaged in various areas including energy, refinery, petroleum, trade and telecommunication and now cooperation in port management adds a new dimension to their mutually beneficial cooperation. The latest agreement is significant in that it will not only strengthen the ties between the two countries but also restore confidence among investors and businessmen in Pakistan at a time when the country is passing through a challenging phase of its existence. The development is likely to revive investors’ sentiments which have been upset by dwindling foreign exchange reserves and depreciating values of rupee. It is also important to note that the joint venture would help improve and modernize port operations as the development work slated for 2026 will enable the terminal to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) and container capacity will increase from 750,000 to one million TEUs per annum. The expansion and enhancement will further cement the terminal and Karachi’s position as a key player in the maritime industry. We hope the authorities concerned would see to it that the contractual obligations are fulfilled diligently to produce the intended benefits of enhancing efficiency, attracting investment and stimulating the economy. Federal Minister for Maritime Affairs Faisal Sabzwari has expressed the confidence that the signing of the agreement underscored both the nation’s shared vision for the development of port infrastructure and set the stage for a prosperous global maritime ecosystem but much depends on the honest implementation of the terms of the accord.
