AD Ports Group And Pakistan Government Sign Four MoUs To Enhance Trade And Logistics Infrastructure

AD Ports Group has entered into four Memoranda of Understanding (MoUs) with Pakistan's government to explore transportation opportunities. These agreements cover maritime, air, rail sectors, logistics, and digital services. The signing took place in Islamabad with key figures like Pakistan's Prime Minister Muhammad Shehbaz Sharif and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi present.

The MoUs involve collaborations with the Pakistan Federal Board of Revenue, Ministry of Railways, Ministry of Maritime Affairs, National Shipping Corporation, Karachi Port Trust, and Airports Authority. They aim to enhance customs processes, develop freight rail corridors, upgrade maritime services, and improve airport logistics. This could significantly expand AD Ports Group’s operations in Pakistan.

Pakistan serves as a crucial trade gateway to Central Asia and Russia for AD Ports Group. In partnership with Kaheel Terminals from the UAE, they are investing nearly US$400 million over 15 years in Karachi Port's container and cargo operations. This investment underscores the strategic importance of Pakistan in regional trade dynamics.

The UAE is a significant trade partner for Pakistan, contributing over US$10 billion in foreign investment over two decades. The trade volume between the two nations reached US$7.9 billion in 2023, marking a 12% increase from the previous year. These figures highlight the robust economic ties between the countries.

Dr. Thani bin Ahmed Al Zeyoudi emphasized the longstanding strategic partnerships between the UAE and Pakistan across various sectors. He stated that these MoUs mark a new era of prosperity in trade and investment by creating opportunities for business communities on both sides and supporting sustainable development efforts.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, expressed commitment to enhancing regional connectivity through these MoUs. "We are committed to enabling trade by enhancing regional connectivity and help Pakistan maximise its role as a growing, regional trade partner," he said.

Long-term Agreements

The collaboration between AD Ports Group and Pakistan includes long-term agreements aimed at upgrading infrastructure. In February 2024, a 25-year concession agreement was signed with Karachi Port Trust to manage bulk cargo terminal berths at Karachi Port’s East Wharf. This agreement builds on an earlier 50-year concession secured in June 2023 for container terminal development.

The joint venture with Kaheel Terminals plans to invest US$75 million over two years in superstructure and equipment at Karachi Port's East Wharf. An additional US$100 million will be invested within five years to boost efficiency by 75%, enabling handling up to 14 million tonnes annually.

The MoUs represent a deepening relationship focused on enhancing Pakistan’s trade infrastructure through strategic investments by AD Ports Group. These initiatives align with both countries' goals of strengthening economic ties while fostering mutual growth in priority sectors.

With inputs from WAM