Islamabad: Abu Dhabi Ports, a company based in the UAE, is set to enter into a 25-year concession agreement with Pakistan to operate the Karachi Gateway Terminal Limited. The federal cabinet has approved this agreement and is expected to bring substantial investments and modernize the Karachi Port.
The Senate Standing Committee on Maritime Affairs, chaired by Senator Rubina Khalid, was apprised of the details during a meeting held at Parliament House. Per the proposed agreement, Abu Dhabi Ports has agreed to pay the Pakistani government an upfront fee of USD 50 million. The deal is set to last for 25 years, during which the UAE-based company will be responsible for paying a fee of USD 18 per cross-berth move, along with an annual ground rent of PKR 1,100 per square meter.
In addition, the terminal operator has pledged to invest USD 102 million over the next five years to enhance the infrastructure of the Karachi Port significantly. During the meeting, the committee was briefed on the key components of the commercial agreement, emphasizing its potential to modernize the Karachi Port and generate a steady source of income.
The interim Minister for Maritime Affairs, Mr Shahid Tarrar, emphasized that outsourcing the Bulk Cargo Terminal is in the country’s best interest, ensuring the modernization and upgrading of the Karachi Port infrastructure and a steady revenue stream. Additionally, the committee examined the procurement tenders the Karachi Port Trust (KPT) issued over the past decade.
The committee also reviewed KPT’s rental charges for machinery and equipment, including hiring a pilot boat from 2016 to 2018 due to the unavailability of KPT’s own boats. In 2019, two pilot boats were procured for shipping purposes, with a daily fee of PKR 60,000 that covered vendor staffing and upkeep. Although the procurement cost amounted to PKR 224 million, the revenue generated from wet charges between 2016 and May 2023 reached approximately PKR 15 billion.
A group of Senators including Nuzhat Sadiq, Muhammad Akram, Mohammad Abdul Qadir, Dost Muhammad Khan, and Saifullah Abro, convened to deliberate on the government’s commitment to enhancing Pakistan’s maritime infrastructure. Their objective is to stimulate economic growth through investments and strategic alliances, all while ensuring transparency in the process. For the latest Real Estate News and Blogs, visit Realtorspk blogs.