Karachi Port Trust (KPT) has secured its first major revenue stream under a new concession agreement with Abu Dhabi Ports Group (AD Ports). According to port industry sources, a signing ceremony was held in the presence of the Maritime Affairs Minister, where AD Ports subsidiary, Karachi Gateway Terminal (KGTL), presented a check of $50 million to KPT. This payment breaks down into two parts: $25 million represents an upfront concession fee, while the remaining $25 million is an advance payment for using the port facilities.

The overall concession agreement with AD Ports Group is valued at $130 million. Additionally, a separate $220 million deal was signed for the development of a bulk cargo terminal by KGTL. Under this agreement, KGTL will share 15% of its annual profits with KPT. This significant investment by AD Ports is expected to boost Karachi Port's efficiency and capacity. The funds will be used for infrastructure upgrades and expansion projects, allowing the port to handle larger vessels and increased cargo volumes.

Credit: Independent News Pakistan