Karachi, Jun 23 (IANS): The UAE-based AD Ports Group has signed a 50-year concession agreement with Karachi Port Trust (KPT) to operate Karachi Gateway Terminal Limited (KGTL) and invest $220 million (Rs 63.129 billion) for infrastructure development in the first 10 years of the deal, media reports said.

The development takes place at a time when cash-strapped Pakistan is looking for external financing to support its ailing economy, The News reported.

Under the agreement, a joint venture (JV) between AD Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based company, has been formed to manage, operate and develop the KGTL berths 6-9 at Karachi Port's East Wharf, AD Ports said.

The JV will undertake significant investments of $220 million in infrastructure and superstructure over the next 10 years, with the bulk of it planned for 2026. The development works will include the deepening of berths, an extension of quay walls and an increase in the container storage area, The News reported.

As a result, the terminal will be able to handle Post Panamax class vessels of up to 8,500 TEUs (Twenty-Foot Equivalent Units) and container capacity will increase from 750,000 to 1 million TEUs per annum. The expansion and enhancement will further cement the terminal and Karachi's position as a key player in the maritime industry.

The terminal's operations are all dollarised with no foreign exchange exposure to the Pakistani rupee. Historically, the terminal has been generating revenue of around $55 million and EBIDTA of around $30 million annually, The News reported.