AD Ports Group Signs MoUs with Pakistan to Boost Trade & Logistics

Photo : Abu Dhabi Media Office

AD Ports Group, a leading UAE-based ports and logistics company, has signed four key Memorandums of Understanding (MoUs) with the Government of Pakistan to explore a comprehensive upgrade to the nation’s maritime, rail, airport, customs, and logistics infrastructure. The agreements were signed in Islamabad, in the presence of high-ranking officials, including Pakistan’s Prime Minister Muhammad Shehbaz Sharif, UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi, Deputy Prime Minister and Foreign Minister of Pakistan Mohammad Ishaq Dar, and UAE Ambassador to Pakistan His Excellency Hamad Obaid Alzaabi. Several senior representatives from AD Ports Group and its partner Kaheel Group also attended the ceremony.

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The MoUs cover a wide range of strategic sectors aimed at boosting Pakistan’s trade and logistics infrastructure. The Pakistan Federal Board of Revenue, Ministry of Railways, Pakistan National Shipping Corporation, Karachi Port Trust, and the Pakistan Airports Authority are the key entities involved in these agreements. Together, the parties will explore potential areas of cooperation in customs modernization, rail transport development, port and maritime services, and airport infrastructure, which could lead to a broader role for AD Ports Group in Pakistan.

The proposed upgrades under the MoUs focus on several key areas, including the improvement of digital customs controls, the development of dedicated freight rail corridors, enhancing Pakistan’s maritime fleet and marine services, and upgrading the country's international airports. These initiatives align with AD Ports Group’s goal to expand its activities in Pakistan, a critical trade hub linking Central Asia and Russia.

AD Ports Group has long been a significant investor in Pakistan. Together with its UAE partner Kaheel Terminals, the group is developing, operating, and managing container, bulk, and general cargo operations at Pakistan’s major port, the Port of Karachi. This partnership, which involves an investment of approximately US$400 million over 15 years, highlights the growing importance of the UAE-Pakistan trade relationship. The UAE is one of Pakistan’s largest trade partners, with more than US$10 billion in foreign investments over the last two decades. In 2023, the UAE-Pakistan trade volume rose by 12 percent to reach US$7.9 billion.

Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, emphasized the deep-rooted and strategic relationship between the UAE and Pakistan across various sectors. He expressed that the MoUs would pave the way for a new phase of prosperity, with mutual benefits for both countries. He added that the agreements would enhance trade and investment opportunities, support sustainable development efforts, and drive joint economic growth.

Captain Mohamed Juma Al Shamisi, the Managing Director and Group CEO of AD Ports Group, stated that the MoUs are a testament to AD Ports Group’s commitment to strengthening ties between the UAE and Pakistan. He said the agreements would help improve regional connectivity, facilitating trade and enabling Pakistan to play an even more significant role as a growing regional trade partner.

The MoUs are part of a broader and ongoing relationship between AD Ports Group and Pakistan, which also includes recent agreements aimed at enhancing the country’s port infrastructure. In February 2024, AD Ports Group signed a 25-year concession agreement with the Karachi Port Trust (KPT) to develop, operate, and manage bulk and general cargo terminal berths 11-17 at Karachi Port’s East Wharf. This partnership involves an investment of US$75 million over the next two years, with further investments of US$100 million over the next five years, to increase terminal efficiency and capacity by 75 percent, enabling it to handle up to 14 million tonnes per year.

Earlier, in June 2023, AD Ports Group and Kaheel Terminals secured a 50-year concession agreement for the development of the Karachi Gateway Terminal Limited (KGTL), a container terminal at Karachi Port’s East Wharf. Together, they have committed to investing US$220 million over the next 10 years to enhance capacity and operational efficiency.

These initiatives reflect AD Ports Group’s broader strategy of supporting Pakistan’s growth as a key trading partner in the region and further cementing the UAE’s pivotal role in the development of infrastructure and trade in South Asia.