Karachi Port Receives $50mn Upfront Payment from AD Ports Group

Karachi Port Receives $50mn Upfront Payment from AD Ports Group - ONS - Merchant Navy Info - News

Karachi Port Trust (KPT) has secured its first major revenue stream. This is under a new concession agreement with Abu Dhabi Ports Group (AD Ports). As per the sources, a signing ceremony was held in the presence of the Maritime Affairs Minister. Here the AD Ports subsidiary, Karachi Gateway Terminal (KGTL), gave a check of $50 million to KPT. This payment is broken down into two components.

Furthermore, there is a $25 million upfront concession fee. At the same time, the remaining $25 million is an advance payment for utilizing the port facilities. The whole thing with AD Ports Group is valued at $130 million. Additionally, a different $220 million deal was signed for the development of a bulk cargo terminal by KGTL. Because of this agreement, KGTL will share 15% of its yearly profits with KPT. More investment is coming. Thus allowing the port to handle larger vessels and increased cargo volumes.

Karachi Port Future and Growth

Karachi Port needs more investment to keep up with international standards. While this is a good sign that international investors are paying interest, a lot more needs to happen for Pakistan to reach its real potential.

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