How much was the deal for Abu Dhabi to Karachi port terminal ?

AD Ports Group has signed an agreement to operate a part of the Karachi Docking Plant.

AD Ports Group of the UAE United Arab Emirates  has signed an agreement to operate a part of the Karachi Docking Plant at a cost of $220 million. Under the agreement, Abu Dhabi Ports will invest 1 billion 80 million dollars.

The deal will be a boon for Pakistan as the economy is on the brink of collapse and the government is desperate for large foreign investment to help pay off debts.

AD Ports Group has partnered with another UAE company. Kaheel Terminals, to acquire a berth from the Karachi Port Trust (KPT).

Karachi Port is the oldest and busiest port in Pakistan with 33 berths and under the UAE agreement 4 of them will be leased by the joint venture for the next 50 years.

The JV will make significant investments in infrastructure and superstructure over the next 10 years.

Plans include deepening the berths, extending the quay wall, and increasing the container storage area to allow larger vessels to anchor.

As a result, the terminal will be able to handle ships with the capacity to carry up to 8,500 containers, and the capacity will increase from 750,000 to one million containers per year, the statement said.

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This is planned for 2026.

The UAE is a major contributor to Pakistan's economy in the form of grants, loans and direct investment, and has previously provided a bailout package to the government of Pakistan at a time when it has guaranteed debt. It has been on the brink of default for several months.