Pakistan decides to handover Karachi Port Cargo Terminal to UAE
During a Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) meeting, chaired by the caretaker prime minister, a decision was made to seek federal cabinet approval for outsourcing the operations of the Cargo Terminal East Wharf at Karachi Port to a UAE port.
The Ministry of Maritime Affairs presented a proposal regarding the outsourcing of operations at the Bulk and General Cargo Terminal East Wharf in Karachi Port during the CCoIGCT meeting.
The secretary of Maritime Affairs provided an overview of the port terminal outsourcing process and discussed prior decisions made by the CCoIGCT on this matter.
It was conveyed during the meeting that the previous decisions of the CCoIGCT from the meeting dated 09-08-2023 were not ratified by the then Cabinet due to its dissolution.
Following discussions, the CCoIGCT decided to submit the recommendations from the previous meeting on 09-08-2023 to the current federal cabinet for consideration and approval.
During the CCoIGCT meeting on 9th August 2023, the recommendations of the negotiation committee, which had two sessions on 8th August 2023 to develop the Bulk and General Cargo Terminal at Karachi Port, were reviewed.
The committee at that time approved these recommendations, with the condition that the concessioner would make a non-refundable/non-adjustable upfront payment of US$25 million as goodwill.
Additionally, the UAE government-owned firm would make another upfront payment of US$25 million, which would be adjustable against revenue sharing over the next seven years, with US$3 million per annum for the first five years and US$5 million each in the subsequent two years