| Islamabad: Pakistan is poised to enter into a 25-year concession agreement with Abu Dhabi Ports, a UAE-based company, for the operation of the Karachi Gateway Terminal Limited, according to news published on October 05. This agreement, having secured approval from the federal cabinet, is expected to bring substantial investments and modernization to the Karachi Port, thereby bolstering the nation’s maritime infrastructure.
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The revelation came during a meeting of the Senate Standing Committee on Maritime Affairs held at the Parliament House on Thursday, which was chaired by Senator Rubina Khalid.
Under the proposed agreement, Abu Dhabi Ports will make an initial payment of USD 50 million to the Pakistani government. The concession period will extend for 25 years, during which the UAE company will pay USD 18 per cross-berth move and a ground rent of PKR 1,100 per sq mt per annum. Moreover, the terminal operator has pledged to invest USD 102 million over the next five years, ensuring significant improvements to the Karachi Port’s infrastructure.
During the meeting, committee members received an overview of the key features of the commercial agreement, emphasizing its potential to modernize the Karachi Port and generate a steady stream of revenue.
The caretaker Minister for Maritime Affairs, Mr Shahid Tarrar, emphasized that outsourcing the Bulk Cargo Terminal was in the country’s best interests, promising modernization and upgrading of Karachi Port infrastructure and guaranteed revenue.
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The committee also scrutinized the procurement tenders issued by Karachi Port Trust (KPT) over the past decade.
Additionally, the committee examined KPT’s hiring of machinery and equipment on rental charges. It was revealed that one pilot boat was hired from 2016 to 2018 due to the unavailability of KPT’s own pilot boats. From 2019 onwards, two pilot boats were rented for shipping operations, each at a daily charge of PKR 60,000, including manning and maintenance by the vendors. However, despite an expenditure of PKR 224 million on these pilot boats, the revenue earned from wet charges between 2016 and May 2023 amounted to approximately PKR 15 billion.
The meeting, attended by Senators Nuzhat Sadiq, Senator Mohammad Abdul Qadir, Senator Saifullah Abro, Senator Dost Muhammad Khan, and Senator Muhammad Akram, underscored the government’s commitment to enhancing Pakistan’s maritime infrastructure, ensuring transparency, and fostering economic growth through strategic partnerships and investments. |
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