According to what the Emirates News Agency reported, memorandums of understanding were signed in Islamabad, with a number of Pakistani government agencies, including the Pakistani Federal Board of Revenue, the Pakistani Ministry of Railways, the Pakistani Ministry of Maritime Affairs, the Pakistan National Shipping Company, and the Pakistan Civil Aviation Authority.
The memorandums of understanding stipulate the discussion of ways of cooperation in the fields of customs, railways, airports, maritime and logistical services, which, if implemented, will contribute to significantly expanding the scope of Abu Dhabi Ports Group’s work in Pakistan.
Cooperation between the two parties focuses on a wide range of core transport and trade areas, starting from improving digital solutions for customs control, developing dedicated freight railway corridors, upgrading the maritime fleet and maritime services and cooperating in enhancing logistics and transportation services at major airports in Pakistan.
Count Abu Dhabi Ports Group It is a major investor in Pakistan, which represents a strategic trade gateway to Central Asia and Russia, and works in cooperation with its Emirati partner, Kahil Terminals, to develop, operate and manage container, bulk and general cargo operations in the Port of Karachi, the main port in Pakistan, and intends to invest approximately $400 million over 15 years. .
The UAE is one of Pakistan’s largest trading partners, and a major source of foreign investment, which has reached more than $10 billion over the past 20 years.
According to data from the Ministry of Economy, the volume of trade between the two countries increased in 2023 to reach $7.9 billion, an increase of 12 percent from 2022.
The four memoranda of understanding are part of a series of agreements aimed at strengthening relations between the group and its regional partners in Pakistan, especially with regard to modernizing the infrastructure of trade, transport and logistics services.
In February 2024, the group entered into a 25-year concession agreement with the Karachi Port Trust, the institution affiliated with the federal government of Pakistan that oversees the management of operations at the port, to develop, operate and manage a general and bulk cargo terminal, which includes berths 11 – 17 located in the eastern quay of the Karachi Port.
Under the concession agreement, a joint venture was established between Abu Dhabi Ports Group, as a majority shareholder, and Kahil Terminals, to invest approximately $75 million during the first two years in the superstructure and equipment, followed by an additional investment of $100 million over five years to enhance the efficiency of the terminal. Increasing its capacity by 75 percent, which will enable it to handle 14 million tons annually in the future.
The signing of this agreement follows the Abu Dhabi Ports Group signing a 50-year concession agreement in June 2023 to develop, operate and manage the “Karachi Gateway Multi-Purpose Terminal Limited”, which includes berths 6 – 10 on the eastern quay of Karachi Port. The group agreed in cooperation with “Kahil Terminals”. To invest $220 million in the project over ten years.
