AD Ports Group signs dredging deal to expand Karachi Port’s capacity

Karachi Gateway Terminal’s capacity will rise to 1 million TEUs by 2026, with bulk vessel capacity set to double under new agreement with Van Oord

Abu Dhabi-based AD Ports Group has signed a dredging agreement with Netherlands-based marine contractor Van Oord to enhance Karachi Port’s position as a regional trade hub. The deal, which involves Karachi Gateway Terminal Limited (KGTL) and is led by AD Ports’ international arm, Noatum Ports, will deepen the terminal’s berths and navigational channels to accommodate larger post-panamax ships, according to a news report. 

Once completed in early 2026, the project will increase container handling capacity at KGTL from 750,000 TEUs to 1 million TEUs, enabling it to handle vessels exceeding 13,000 TEUs. 

Additionally, the project will enhance Karachi Gateway Terminal Multipurpose Limited’s ability to accommodate bulk vessels, doubling its capacity from 60,000-tonne Handymax vessels to 120,000-tonne post-panamax ships.

This expansion aims to reduce freight costs and improve throughput at Pakistan’s busiest port. The initiative is part of AD Ports Group’s broader strategy to modernize infrastructure in Pakistan. 

In 2023, the Abu Dhabi-based operator secured long-term concessions to manage container and bulk berths at Karachi Port, committing nearly AED 1.1 billion to the modernization process.

Khurram Aziz Khan, CEO of KGTL and Karachi Gateway Terminal Multipurpose Limited, emphasized that the project will benefit customers by reducing logistics costs and optimizing foreign exchange usage on freight. It will also bolster Pakistan’s standing as a key trade hub in the region.

Mohammed Al Tamimi, CEO of Noatum Ports, described the dredging project as a strategic investment in Pakistan’s economic resilience and global connectivity. The initiative highlights Pakistan’s increasing reliance on Gulf investors for vital transport infrastructure upgrades, particularly in light of fiscal constraints. 

Despite a slowdown in overall foreign direct investment, the maritime sector continues to attract significant interest due to Pakistan’s strategic location between South Asia, the Middle East, and Central Asia.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

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