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AD Ports Group Signs MoUs with Pakistan to Boost Trade and Logistics Infrastructure

Photo : Abu Dhabi Media Office

AD Ports Group, a leading player in the global trade and logistics sector, has taken a significant step towards advancing trade and infrastructure in Pakistan by signing four Memorandums of Understanding (MoUs) with the Government of the Islamic Republic of Pakistan. The MoUs aim to explore opportunities for upgrading Pakistan’s maritime, rail, airport, customs, and logistics infrastructure, strengthening the nation’s position as a key player in global trade.

The signing ceremony took place in Islamabad, attended by prominent figures including Muhammad Shehbaz Sharif, the Prime Minister of Pakistan, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, His Excellency Mohammad Ishaq Dar, Pakistan’s Deputy Prime Minister and Minister of Foreign Affairs, and His Excellency Hamad Obaid Alzaabi, UAE Ambassador to Pakistan. Several high-ranking officials from AD Ports Group and Kaheel Group were also present at the event, marking a new era of cooperation between the UAE and Pakistan.

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The MoUs were signed with four major Pakistani entities: the Pakistan Federal Board of Revenue, the Pakistan Ministry of Railways, the Pakistan National Shipping Corporation, and Karachi Port Trust, as well as the Pakistan Airports Authority. Through these agreements, both parties will explore new avenues of cooperation in several vital sectors, including customs, rail infrastructure, airport development, and maritime shipping and logistics. These projects are expected to significantly expand AD Ports Group’s footprint in Pakistan, enhancing the efficiency and capacity of the nation’s trade infrastructure.

Among the areas of focus outlined in the MoUs are the modernization of digital customs controls, the development of dedicated freight rail corridors, upgrading the country’s maritime fleet and marine services, and improving the operations of Pakistan’s international airports. These initiatives align with Pakistan's broader goal of improving its transport and trade infrastructure, positioning the country as a key player in regional and global trade networks.

AD Ports Group is already a significant investor in Pakistan, with a particular focus on the Port of Karachi, the country's primary port. The group, in partnership with UAE’s Kaheel Terminals, is currently involved in the development, operation, and management of container, bulk, and general cargo operations at Karachi Port. This partnership represents an investment of nearly US$400 million over the next 15 years, further cementing the strong economic ties between the UAE and Pakistan.

The UAE is one of Pakistan’s largest trade partners and a key source of foreign investment, having invested over US$10 billion in Pakistan over the past two decades. Bilateral trade between the two countries reached US$7.9 billion in 2023, marking a 12% increase compared to the previous year. This growing trade volume is a testament to the deepening economic relationship between the two nations.

Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, emphasized the longstanding strategic partnership between the UAE and Pakistan, highlighting that these MoUs would create new opportunities for businesses and private sectors in both countries. He also noted that the agreements would support sustainable development and stimulate joint economic growth, in line with the shared goals of both nations.

Captain Mohamed Juma Al Shamisi, the Managing Director and Group CEO of AD Ports Group, expressed confidence that the MoUs would lead to fruitful collaborations that would bolster ties between the UAE and Pakistan. He reiterated AD Ports Group’s commitment to enhancing regional connectivity and supporting Pakistan’s growing role as a key trade partner.

The latest MoUs build on a series of agreements that AD Ports Group has signed with Pakistan in recent years, aimed at upgrading the country’s transport and logistics infrastructure. In February 2024, AD Ports Group signed a 25-year concession agreement with the Karachi Port Trust to develop, operate, and manage bulk and general cargo terminal berths 11-17 at Karachi Port’s East Wharf. The group, along with its joint venture partner Kaheel Terminals, has committed to investing US$75 million over the next two years in superstructure and equipment, with plans to invest an additional US$100 million within five years to increase the terminal’s capacity by 75%. This expansion will allow the terminal to handle up to 14 million tonnes per year.

These efforts are part of a broader strategy to enhance the efficiency of Karachi Port, which handles a significant portion of Pakistan's trade. In June 2023, AD Ports Group secured a 50-year concession agreement to develop, operate, and manage the Karachi Gateway Terminal Limited (KGTL) container terminal, with a commitment to invest US$220 million over the next decade. This investment is aimed at enhancing the port's capacity and ensuring its continued growth as a key trade hub in the region.

Through these initiatives, AD Ports Group is playing a pivotal role in shaping the future of Pakistan’s trade and logistics landscape. The MoUs signed today are expected to further strengthen the UAE-Pakistan economic relationship and position both nations for continued success in the global marketplace.

Nov. 10, 2024 12:45 p.m. 473

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