AD Ports Group has signed four Memoranda of Understanding (MoUs) with the Government of Pakistan to explore transportation opportunities in the maritime, air and rail sectors as well as logistics and digital services.
The parties will explore potential collaborations in customs, rail, airport infrastructure, and maritime shipping and logistics, which, if pursued, is expected to 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.
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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 per cent from 2022.
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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 per cent, enabling the terminal to handle up to 14 million tonnes per annum.
Earlier this summer, AD Ports Group announced the completion of the acquisition process for the Tbilisi Dry Port, making the Group the majority owner with a 60 per cent stake.
