Tag: Joint Venture

  • Pakistan exports first batch of Changan Oshan X7 SUVs to Kenya and Tanzania

    Pakistan exports first batch of Changan Oshan X7 SUVs to Kenya and Tanzania

    Pakistan has made a significant foray into the global automobile market, marking a historic moment as it exported a batch of 14 SUV vehicles to Kenya and Tanzania, as reported by ARY News on Thursday.

    In a landmark achievement, Pakistan, through the collaboration of Master Changan Motors, a joint venture between Pakistan and China, has officially joined the league of car-exporting nations. This endeavour has solidified their position as the first automotive company to send SUV vehicles to foreign shores.

    The occasion was celebrated with a ceremonial event held in Karachi, commemorating the milestone of becoming the inaugural Pakistani-Chinese auto entity to export vehicles to two overseas destinations. Notably, the ceremony was attended by the Federal Secretary of Industries and Production, Asad Rehman.

    Rehnan also revealed the government’s intent to urge auto manufacturers to revise their car prices, especially in light of the notable depreciation of the US dollar (USD). He underlined the efforts in this direction by mentioning a recent newspaper advertisement released by an auto company, signaling its commitment to reducing vehicle prices.

    The export of the Oshan X7 SUV is a significant milestone for Pakistan as it ventures into the global automobile market, and this achievement carries even greater importance given the challenging economic conditions the country is currently facing.

    In a groundbreaking move, Pakistan’s collaborative effort with a Chinese automotive company, Master Changan Motors, marked their entry into the league of car exporters. They proudly achieved this milestone by sending the initial consignment of 14 SUV vehicles to Kenya and Tanzania.

    A special ceremony was organised in Karachi to celebrate the occasion, as it signified the first instance of a Pakistani-Chinese automotive company venturing into foreign vehicle exports.

    The Federal Secretary of Industries and Production, Asad Rehman was also present at the ceremony.

    During the ceremony, Asad Rehman conveyed the government’s intention to encourage auto companies to lower their car prices, given the significant decline in the value of the US dollar (USD).

    He also mentioned that an automotive firm had recently placed a newspaper advertisement advocating price reductions.

    Master Changan Motors, the Pakistan-Chinese automotive collaboration, proudly shipped its SUV model, the Oshan X7, to Kenya.

    This achievement is a notable milestone for Pakistan, considering the challenging economic circumstances it faces.

  • UAE-based company to oversee operations and development of Karachi Gateway Terminal for 50 years

    UAE-based company to oversee operations and development of Karachi Gateway Terminal for 50 years

    The AD Ports Group, based in the United Arab Emirates (UAE), has entered into a 50-year concession agreement with the Karachi Port Trust (KPT) to manage and develop the Karachi Gateway Terminal Limited (KGTL).

    The group will invest $220 million in infrastructure development over the first 10 years of the agreement. This agreement is particularly significant as Pakistan seeks external financing to support its struggling economy.

    According to the terms of the agreement, a joint venture has been established between AD Ports Group and Kaheel Terminals, a UAE-based company, with AD Ports Group as the majority shareholder. The joint venture will oversee the management, operation, and development of the KGTL, specifically berths 6-9 at Karachi Port’s East Wharf.

    The infrastructure investment will focus on deepening berths, extending quay walls, and expanding the container storage area. These enhancements will enable the terminal to accommodate larger vessels and increase its annual container capacity from 750,000 to 1 million TEUs.

    Captain Mohamed Juma Al Shamisi, the Managing Director and Group CEO of AD Ports Group, expressed enthusiasm about the concession agreement, stating that it aligns with the group’s strategy of investing in strategic maritime trade routes. He believes that this agreement has the potential to bolster the economies of both the UAE and Pakistan, foster stronger relationships with key trading partners, and drive economic growth and prosperity.

    The terminal’s operations are denominated in US dollars, minimising exposure to fluctuations in the Pakistani rupee. The terminal has historically generated revenues of approximately $55 million and an annual EBIDTA of around $30 million.

    The UAE and Pakistan have a robust trade relationship, with the UAE serving as Pakistan’s leading regional trading partner in 2021. Bilateral trade between the two countries accounted for over 40 per cent of Pakistan’s trade with Arab nations. In 2022, non-oil exports from the UAE to Pakistan amounted to nearly AED 4.8 billion ($1.3 billion), while re-exports from the UAE to Pakistan reached AED 10.6 billion (US$2.9 billion), demonstrating a 7.7 per cent growth compared to 2021.

    According to Geo, the agreement between AD Ports Group and KPT has been hailed as a significant milestone by Syed Syedain Raza Zaidi, Chairman of Karachi Port Trust. Zaidi believes that this collaboration will pave the way for a thriving container terminal, driving efficiency, attracting investment, and stimulating economic development in Karachi.