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

The ratings are underpinned by the strong sponsor profile of Karachi Gateway Terminal Multipurpose Limited (“the Company” or “KGTML”), which is held through Bulk Terminal & Investment Limited (BTIL), with a 60% stake held by AD Ports Group and a 40% stake held by Kaheel Terminals. Ultimate ownership rests with ADQ - the Abu Dhabi sovereign wealth fund, through Abu Dhabi Ports Company PJSC, providing strong sovereign linkage and a high likelihood of continued strategic and financial support. AD Ports Group brings extensive global experience in developing and operating port infrastructure, while Kaheel Group contributes regional investment depth. The sponsors entered Pakistan in 2023 under a government-to-government framework, underscoring their long-term commitment to developing port infrastructure at Karachi Port Trust — a critical maritime gateway for the Country. KGTML operates under a 25-year concession with KPT for exclusive operations at Berths 11–17, handling dry bulk, general cargo, project cargo, and liquid bulk commodities, with current installed capacity of approx. 10 MTPA. The Company holds the exclusive right to handle cargo at its designated berths, reinforced by a first right of refusal, which strengthens its competitive positioning. Capacity expansion to approx. 18 MTPA is planned in two phases, incorporating equipment upgrades and development of a clean bulk terminal; Phase I financial close has largely been achieved with approx. PKR 11–11.5bln in long-term debt secured, with a similar scale envisaged for Phase II. A concurrent dredging initiative are undertaken that will expand vessel handling capacity from 60,000 DWT to 120,000 DWT, materially enhancing operational throughput and competitiveness. Operationally, the terminal carries a degree of concentration in clinker and steel volumes, which remains a key rating consideration; however, management expects that the planned infrastructure upgrades will enable the handling of larger vessels, thereby supporting gradual diversification in cargo mix over time. The tariff-based revenue model comprising cargo handling, storage, vessel-related, and ancillary charges, provides predictable cash flow visibility under the long-term concession framework. Since commencing operations in 2023, the Company has demonstrated a strong ramp-up, with CY25 revenues of PKR 13,934mln and net revenues of PKR 12,094mln, reflecting growth of 26.2% driven by increasing throughput and improving operational efficiencies. Profitability remains healthy, supported by sound liquidity and adequate coverage metrics. The capital structure reflects a concession-based infrastructure model, with total assets of PKR 15,979mln, equity of PKR 6,637mln, and borrowings of PKR 6,915mln, currently dominated by sponsor-related funding; however, as expansion-related commercial debt is raised going forward, overall leverage is expected to increase and the structure is likely to progressively evolve into a more blended financing mix. 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 making efforts toward diversification, and projected volumes are essential to maintain financial stability and ensure timely debt servicing.
The ratings draw comfort from strong sovereign-linked sponsor support, exclusive concession rights with first right of refusal, a stable tariff-based revenue model, and a sound financial profile. However, remain sensitive to cargo concentration risk, execution of the volume ramp-up, and broader macroeconomic and trade-related risks.

About the Entity
KGTML was incorporated in October 2023 and commenced commercial operations in 2024. 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.