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 for infrastructure development in the first 10 years of the deal.
The development takes place at a time when cash-strapped Pakistan is looking for external financing to support its ailing economy. Under the agreement, a joint venture between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, has been formed to manage, operate and develop the KGTL berths 6-9 at Karachi Port's East Wharf.
The joint venture will undertake significant investments of $220 million in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026. The development works will include the deepening of berths, an extension of quay walls and an increase in the container storage area.
Source: argusenglish.in