AD Ports Group’s Karachi Terminals sign major dredging agreement

AD Ports Group on Tuesday announced the signing of a major dredging agreement between its Karachi Gateway Terminal and Van Oord, a Netherlands-based global leader in dredging and marine contracting, to significantly expand the flow of trade through the Group’s port terminals in Pakistan.

Led by the Group’s international ports operating arm, Noatum Ports, the project will deepen berths and navigational channels at Karachi Gateway Terminal (KGTL), a container terminal, enabling the accommodation of vessels from 305 metres to 350 metres in length and 13 metres to 15.5 metres in draft. Container handling capacity at KGTL will be increased from 750,000 TEUs to 1 million TEUs upon completion of the expansion works.

At the adjacent Karachi Gateway Terminal Multipurpose Limited (KGTML), that focuses on general and bulk cargo, the dredging work will double bulk vessel capacity from 60,000 to 120,000 tonnes-reducing freight costs and increasing throughput.

The dredging works are expected to be completed in Q1 2026. The KGTL and KGTML terminal operations are joint ventures between the Group and a Dubai-based partner, Kaheel Terminals.

Mohammed Al Tamimi, Chief Executive Officer - Noatum Ports, said: "This dredging project is more than a significant infrastructure upgrade to the two Karachi terminals’ commercial versatility, it is a forward-looking investment in the economic resilience and global connectivity of Pakistan. The project underscores our commitment to promote sustainable development, operational efficiency and long-term value creation for all stakeholders.''

Godfried Van Oord, Area Manager Middle East - Van Oord, added: "Van Oord is proud to be selected by AD Ports Group to realise this significant upgrade to the existing logistic and infrastructure facilities at their Karachi terminals, which will enhance Pakistan’s maritime infrastructure and support its growing economy.''

AD Ports Group entered the Pakistani market in 2023 through long-term concessions to operate container and bulk cargo berths at Karachi Port. As part of its commitment to the country, the Group is investing nearly Dhs1.1 billion ($300 million) to modernise port infrastructure and digital systems to support trade growth and economic diversification.

Khurram Aziz Khan, Chief Executive Officer - Karachi Gateway Terminal Limited (KGTL) and Karachi Gateway Terminal Multipurpose Limited (KGTML), said: "The dredging project will enable us to accommodate larger and deeper draft vessels at both our container and bulk terminals. This advancement will directly benefit our customers, optimising the use of foreign exchange spent on freight and reducing overall logistics costs. It will also reinforce Pakistan’s role as a regional trade hub, opening greater access to global markets.

Ultimately, this initiative will deliver a positive impact for our customers across Pakistan, while modernising Karachi’s port infrastructure for long-term national growth.”

Meanwhile in February this year AD Ports Group has signed in Karachi, Pakistan, a Memorandum of Understanding (MoU) with the Pakistan Board of Investment to explore developing an industrial zone near Karachi Port and Port Qasim to facilitate trade and economic activity.

The MoU signing was attended by His Highenss Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.

The Group also announced the separate signings of three other agreements, bringing to bear the full economic weight of its five-business cluster structure of ports, economic cities and free zones, maritime and shipping, logistics, and digital services.

The synergistic business ecosystem of interrelated businesses produces unique end-to-end trade and logistics solutions that enable trade for Pakistan and position the country into a world-class maritime hub and key gateway to Central Asia.

Pakistan plays a key role in one of the Group's strategic growth priorities in Central Asia as the maritime gateway of the "Middle Corridor" connecting Asia and Europe, where the Group has acquired maritime and logistics businesses in Georgia, Kazakhstan and Uzbekistan.

Redevelopment of the Port of Karachi, Pakistan's main port with overland connections into Central Asia, will further develop the "Middle Corridor" into a modern and cost-efficient maritime sea route.

Today's signing of three new partnership agreements and an MoU represents an important expansion of the Group's activities in Pakistan, authorising partnership agreements with different Pakistani entities to digitalise and modernise the Port of Karachi's customs management systems, and to improve the quality and range of marine services, dredging, and vessel pooling services, as well as providing comprehensive and integrated end-to-end logistics solutions.

The new signings commit AD Ports Group to work with Pakistani partners to explore the possibility of establishing an industrial zone for industrial and commercial businesses near Karachi and Qasim Ports and to provide integrated end-to-end logistics solutions over air, ocean, and inland transport, including warehousing and distribution, to dramatically improve Pakistan's inland trade corridors into Central Asia.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said: "We are pleased to sign these agreements as part of our commitment to supporting economic growth in Pakistan, in line with the vision of our wise leadership to advance relations between the two countries in a way that benefits both, providing new opportunities and achieving prosperity for the people of Pakistan.

He added that AD Ports Group seeks to enable trade in the UAE and strengthen trade partners worldwide, particularly with Pakistan, which serves as the main gateway to Central Asia. By leveraging its expertise and integrated business offerings, it aims to enable trade in Central Asia on a broader and more efficient scale.

The first agreement is between AD Ports Group's Maqta Technologies and Pakistan's PSW to explore strengthening Pakistan Single Window systems through collaboration with Pakistan Customs Services to modernise select borders and analyse cross-border systems.

The second is between AD Ports Group and Bahria Foundation, a Pakistan diversified conglomerate engaged in industrial, commercial and development activities to enhance the productivity of the dredging, marine services, and vessel pooling at Karachi Port.

The third is a strategic partnership agreement between the Group's Noatum Logistics and KGTL, the Group's joint venture with Kaheel Terminals, to explore providing comprehensive and integrated end-to-end logistics solutions over air, ocean and inland transport, as well as warehousing and distribution solutions including cold storage, to develop a corridor into greater Pakistan and Central Asia.

WAM