ISLAMABAD (WAM)
AD Ports Group signed four Memoranda of Understanding (MoU) on Friday with the Government of Pakistan to explore transportation opportunities in the maritime, air and rail sectors as well as logistics and digital services.
The MoUs were signed and exchanged in Islamabad in the presence of Muhammad Shehbaz Sharif, Prime Minister of Pakistan, Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, Mohammad Ishaq Dar, Deputy Prime Minister and Minister of Foreign Affairs, Hamad Obaid Alzaabi, UAE Ambassador to the Islamic Republic of Pakistan, as well as a number of Cabinet Ministers and senior officials from AD Ports Group and Kaheel Group.
The MoUs were concluded with the Pakistan Federal Board of Revenue, the Pakistan Ministry of Railways, Ministry of Maritime Affairs, the Pakistan National Shipping Corporation and Karachi Port Trust, and the Pakistan Airports Authority.
As per those MoUs, the parties will explore potential collaborations in customs, rail, airport infrastructure, and maritime shipping and logistics, which, if pursued, would expand AD Ports Group’s activities in the country.
The focus covers a wide range of basic transport and trade areas, ranging from improving digital customs controls, to developing dedicated freight rail corridors, to upgrading the nation’s maritime fleet and marine services, as well as cooperation in enhancing the logistics and transport services in Pakistan’s main airports.
AD Ports Group is a major investor in Pakistan, which is a strategic trade gateway to Central Asia and Russia.
With UAE partner Kaheel Terminals, AD Ports Group 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.
The UAE is one of Pakistan’s largest trade partners and a major source of foreign investment, which has amounted to more than $10 billion over the last 20 years, according to the UAE Ministry of Foreign Affairs.
The UAE-Pakistan trade volume rose to $7.9 billion in 2023, up 12 percent from 2022, according to the UAE Ministry of Economy.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stressed that the UAE and Pakistan have long-standing strategic partnerships in many sectors.
“The MoUs signed today establish a new phase of prosperity in trade and investment. They 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 peoples.”
He added, “There is a common will between the two countries to advance their trade and investment relations to new heights in main priority sectors”.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “With these MoUs today, AD Ports Group will explore ways to identify potential projects and opportunities for mutual growth that will strengthen ties between the UAE and Pakistan, in line with our wise leadership vision. We are committed to enabling trade by enhancing regional connectivity and help Pakistan maximise its role as a growing, regional trade partner.”
The MoUs are the latest in a developing relationship between the Group and Pakistan related to upgrades to the regional partner’s trade, transport and logistics infrastructure.
In February 2024, the Group signed a 25-year concession agreement with the Pakistani federal agency that oversees Karachi Port, the Karachi Port Trust (KPT), to develop, operate and manage bulk and general cargo terminal berths 11-17 at Karachi Port’s East Wharf.
As majority shareholder in a joint venture with Kaheel Terminals of the UAE, 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 percent, 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 Group in June 2023 to develop, operate and manage Karachi Gateway Terminal Limited (KGTL) container terminal berths 6-10 at Karachi Port’s East Wharf. With Kaheel Terminals, AD Ports Group agreed to invest $220 million in the project over 10 years.