UAE port operator the AD Ports Group and the government of Pakistan have entered into memoranda of understanding (MOUs) to explore transportation opportunities in the maritime sector as well as logistics and digital services.
As per the MOUs, the parties will explore potential collaborations in customs infrastructure and maritime shipping and logistics, which, if pursued, would expand the AD Ports Group’s activities in the country. The focus covers a wide range of basic transport and trade areas, ranging from improving digital customs controls to upgrading the nation’s maritime fleet and marine services.
The AD Ports Group is a major investor in Pakistan, which is a strategic trade gateway to Central Asia and Russia. With UAE partner Kaheel Terminals, the AD Ports Group is developing, operating and managing container, bulk and general cargo operations at the Port of Karachi, Pakistan’s major port, where it has agreed to invest almost US$400 million over 15 years.
The MOUs are the latest in a developing relationship between the group and Pakistan related to upgrades to the regional partner’s trade, transport, and logistics infrastructure. In February 2024, the group signed a 25-year concession agreement with the Pakistani federal agency that oversees Karachi Port, the Karachi Port Trust, to develop, operate and manage bulk and general cargo terminal berths 11 to 17 at Karachi Port’s East Wharf.
As majority shareholder in a joint venture with Kaheel Terminals of the UAE, the venture agreed to invest US$75 million over the next two years in superstructure and equipment, followed by US$100 million within five years to increase efficiency and capacity by 75 per cent, enabling the terminal to handle up to 14 million tonnes per annum.
The agreement built upon an earlier 50-year concession agreement secured by the AD Ports Group in June 2023 to develop, operate and manage Karachi Gateway Terminal container terminal berths six to 10 at Karachi Port’s East Wharf. With Kaheel Terminals, the AD Ports Group agreed to invest US$220 million in the project over 10 years.