AD Ports Group Signs 50-Year Concession Agreement with KPT for Container Terminal

Abu Dhabi, UAE – 22 June 2023: AD Ports Group (ADX: ADPORTS), a global
leader in trade, logistics, and industry, announced today the signing of a concession
agreement with Karachi Port Trust (KPT), the Pakistani federal government agency
that oversees the operations of the Port of Karachi.

Under the terms of the 50-year concession agreement, a Joint Venture between AD
Ports Group, as a majority shareholder, and Kaheel Terminals, a UAE-based
company has been formed to manage, operate and develop the Karachi Gateway
Terminal Limited (KGTL), berths 6-9 at Karachi Port’s East Wharf.
The JV will undertake significant investments in infrastructure and superstructure
over the next 10 years, with the bulk of it planned for 2026. The development works
will include deepening of berths, extension of quay walls, and an increase in
container storage area. 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. This 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 or around $30 million annually.
This strategic agreement follows the preceding signing of a Memorandum of
Understanding, which inked both entities shared vision to drive growth, promote
trade diversification, and strengthen bilateral ties between the UAE and Pakistan.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD
Ports Group said, “AD Ports Group is delighted to embark on this landmark
concession agreement with Karachi Port Trust, which exemplifies AD Ports Group’s
strategy of investing in key maritime trade routes for the UAE, replicating our
successful integrated business model in regions that offer long-term, sustainable
growth prospects.

“This agreement has the potential to unlock a new chapter of growth and progress
for both the UAE and Pakistan, enabling us to strengthen ties with key trading
nations and leading to increased economic growth and prosperity. We foresee
significant opportunities ahead, together, in line with our wise leadership’s vision, we
will redefine the maritime landscape and create value for all stakeholders.”
Faisal Subzwari, Pakistan Minister for Maritime Affairs, said, “The UAE and
Pakistan have a strong and long-standing relationship, which is experiencing
continuous growth in the areas of trade and investment due to our leadership’s
commitment to further strengthen ties. The signing of this agreement underscores
both our great nation’s shared vision for the development of port infrastructure and
sets the stage for a prosperous global maritime ecosystem.”

Syed Syedain Raza Zaidi, Chairman, Karachi Port Trust, said, “This landmark
agreement between AD Ports Group and KPT marks a significant milestone and
holds big potential for the growth and development of Karachi Port. By joining forces,
we are paving the way for a thriving container terminal that will enhance efficiency,
attract investment, and stimulate the economy.”

The UAE was Pakistan’s number one regional trading partner in 2021, accounting for
over 40% of Pakistan’s trade with Arab countries, with non-oil exports from the UAE
to Pakistan valued at nearly AED 4.8 billion ($1.3 billion) in 2022 according to
Pakistan’s Ministry of State for Foreign Trade. Additionally, re-exports from the UAE
to Pakistan amounted to AED 10.6 billion (US$ 2.9 billion), reflecting a 7.7% growth
compared to 2021.