AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, has signed four initial agreements with Pakistan to explore new avenues in trade, transport, and logistics infrastructure, boosting the UAE-Pakistan economic relationship.
The pacts were signed in Islamabad in the presence of Pakistani Prime Minister Shehbaz Sharif and Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade.
The deals were concluded with Pakistan Federal Board of Revenue, Pakistan's Ministry of Railways, Ministry of Maritime Affairs, Pakistan National Shipping Corporation and Karachi Port Trust, and Pakistan Airports Authority. The entities will explore potential collaborations in customs, rail, airport infrastructure, maritime shipping and logistics, AD Ports said in a statement.
The agreements “will contribute to providing new opportunities for the business communities and private sectors on both sides, support sustainable development efforts, and stimulate joint economic growth to achieve the mutual interests of both countries and people,” Dr Al Zeyoudi said.
The UAE is one of Pakistan’s largest trade partners and a major source of foreign investment, which totalled more than $10 billion over the last 20 years, according to the UAE Ministry of Foreign Affairs. The UAE-Pakistan trade volume stood at $7.9 billion last year, up 12 per cent from 2022, according to the UAE Ministry of Economy.
Established in 2006, AD Ports’ portfolio includes 33 terminals, with a presence in more than 50 countries, and more than 550 square kilometres of economic zones.
AD Ports is a major investor in Pakistan, which is a trade gateway to Central Asia and Russia.
With UAE partner Kaheel Terminals, AD Ports is developing, operating and managing container, bulk and general cargo operations at the Port of Karachi, Pakistan’s major port, where it has agreed to invest almost $400 million over 15 years.
In February, the AD Ports signed a 25-year concession agreement with the Karachi Port Trust, the Pakistani federal agency that oversees Karachi port, to develop, operate and manage bulk and general cargo terminal berths at Karachi Port’s East wharf.
As majority shareholder in a joint venture with Kaheel Terminals, the venture agreed to invest $75 million over the next two years in superstructure and equipment, followed by $100 million within five years to increase efficiency and capacity by 75 per cent, enabling the terminal to handle up to 14 million tonnes per annum.
The agreement built upon an earlier 50-year concession agreement secured by AD Ports in June last year to develop, operate and manage Karachi Gateway Terminal container terminal berths at Karachi Port’s East wharf. With Kaheel Terminals, AD Ports Group agreed to invest $220 million in the project over 10 years.
