PACRA Assigns Initial Entity Ratings to Karachi Gateway Terminal (Pvt.) Limited

The ratings reflect the strong sponsor profile of Karachi Gateway Terminal (Private) Limited (“the Company” or “KGTL”), operating as a wholly owned subsidiary of Infrastructure and Development Investment Limited (IDIL), which is owned by AD Ports Group (60%) and Kaheel Terminals (40%). Ultimate ownership rests with Abu Dhabi Ports Company PJSC (AD Ports Group), backed by Abu Dhabi Developmental Holding Company (ADQ), providing strong sovereign linkage and a high likelihood of continued strategic and financial support. AD Ports Group is a leading global trade and logistics platform with operations spanning over 50 countries and a diversified portfolio of more than 34 terminals, bringing extensive international expertise in terminal management, commercial strategy, and digital integration. The sponsors established KGTL under a Government-to-Government (G2G) strategic framework between the Government of Pakistan and the Government of the United Arab Emirates, underscoring their long-term commitment to developing container handling infrastructure at Karachi Port Trust — a critical maritime gateway for the Country. KGTL operates under an Operations, Management, Investment and Development (OMID) agreement with KPT, granting exclusive rights for the construction, development, operations, and management of a container terminal at East Wharf, Karachi Port, for an initial period of twenty-five (25) years with an embedded option to extend for a further 25 years, providing long-term operational stability and strong revenue visibility. The Company has undertaken a comprehensive capital expenditure program, comprising dredging, berth extension, and procurement and upgradation of machinery and equipment, expecting to increase total annual throughput capacity to approximately 982,000 TEUs by 2030. Financial close for the expansion was achieved on January 15, 2026, with PKR 29,600 million in long-term project finance secured through a consortium of local banks, with construction currently underway. Since commencing operations, the Company has demonstrated strong revenue growth, with CY25 net revenues of PKR 12,880 million, reflecting growth of 18.1% over the prior year, driven by increasing throughput across container handling, arrastre, and storage services. Total leveraging of the Company stands at 54.7%, predominantly comprised of sponsor loan. Sponsor loans remain contractually subordinated to senior commercial debt, thereby providing structural protection to external lenders and enhancing financial flexibility. Projected cash flows provide adequate comfort for timely servicing of total debt obligations, for which independent assessments have been conducted by management. Management is actively pursuing volume ramp-up initiatives and ongoing capacity enhancement to maintain financial stability and ensure timely debt servicing.
The ratings draw comfort from KGTL's strong sovereign-linked sponsor profile and implicit support from AD Ports Group, an exclusive long-term concession agreement with Karachi Port Trust ensuring structural revenue certainty, a diversified tariff-based revenue model, and the Company's strategic positioning as a key infrastructure asset within Pakistan's maritime trade ecosystem. However, the ratings remain sensitive to the Company's ability to sustain throughput growth, maintain profitability amid cost pressures, and prudently managing its leveraged capital structure.

About the Entity
KGTL commenced commercial operations in 2023. The Company benefits from the strong sponsorship of AD Ports Group (rated ‘AA-’ by Fitch), which provides substantial financial strength, strategic support, and operational backing. The Company is managed by an experienced team with relevant sector expertise, supporting its long-term growth trajectory.