Pakistan is on the brink of finalizing a 25-year concession agreement with Abu Dhabi Ports, a UAE-based company, to operate the Karachi Gateway Terminal Limited.
The federal cabinet has already granted approval for this agreement, which promises significant investments and the modernization of the Karachi Port, thereby enhancing Pakistan’s maritime infrastructure.
During a meeting of the Senate Standing Committee on Maritime Affairs, chaired by Senator Rubina Khalid, this development was disclosed. The proposed agreement outlines that Abu Dhabi Ports will make an initial payment of $50 million to the Pakistani government.
The concession period will span 25 years, during which the UAE company will pay $18.00 per cross berth move and an annual ground rent of Rs 1,100 per sq. mt. Additionally, Abu Dhabi Ports has committed to investing $102 million in the next five years, ensuring substantial infrastructural improvements at the Karachi Port.
The committee members were presented with an overview of the key aspects of the commercial agreement during the meeting, emphasizing its potential to modernize the Karachi Port and ensure a steady revenue stream.
The caretaker Minister for Maritime Affairs, Mr. Shahid Tarrar, requested an in-camera meeting to provide a detailed briefing on the outsourcing of the Bulk Cargo Terminal. He emphasized that while the agreement had not been signed yet, it had received cabinet approval and was in the final stages of execution.
He assured the committee that outsourcing the Bulk Cargo Terminal was in the country’s best interests, promising the modernization and enhancement of Karachi Port infrastructure along with guaranteed revenue.
The committee also scrutinized the procurement tenders issued by Karachi Port Trust (KPT) over the past decade. Additionally, KPT’s hiring of machinery and equipment on rental charges was examined. It was revealed that pilot boats were rented between 2016 and 2018 due to the non-availability of KPT’s own pilot boats.