By: AGBI

AD Ports Group is exploring the development of a new industrial zone near Pakistan’s Karachi and Qasim ports after opening its first representative office in Islamabad.

The move follows a $295 million investment aimed at developing and enhancing the container, bulk and general cargo terminals at Karachi Port’s East Wharf, the state-run Wam news agency reported.

Abu Dhabi-listed AD Ports signed a memorandum of understanding with Pakistan’s board of investment for the potential development of an industrial zone.

Pakistan is a maritime gateway to Central Asia and a vital component of AD Ports’ plan to build an integrated trade corridor spanning from China to Europe. The group has already made inroads into key markets along this corridor, including Kazakhstan, Uzbekistan and Georgia.

In 2022, the ports operator entered Pakistan through a 50-year concession to develop and operate container terminal berths at Karachi Port’s East Wharf, in partnership with Kaheel Terminals. This was followed by a second 50-year concession signed in 2023 to develop and manage berths for general and bulk cargo.

Karachi Gateway Terminal Limited (KGTL) oversees AD Ports’ terminal operations in Pakistan.

Additionally, the group signed an agreement with Pakistan Single Window to co-develop a unified digital trade platform to streamline customs and trade procedures. It will collaborate with the Bahria Foundation to enhance dredging, vessel pooling and marine services.

Moreover, Noatum Logistics, a subsidiary, and KGTL will co-develop a multi-modal logistics corridor linking Pakistan with Central Asia.

Last month AD Ports opened its first international office in Beijing, accelerating the pace of its global expansion strategy.

The company has a free float of nearly 25 percent, while ADQ, the sovereign wealth fund, owns a 75 percent stake. The stock closed 0.2 percent lower at AED4.16 on Tuesday and is down 19 percent year to date.