Abu Dhabi-based AD Ports has announced a major expansion of the group’s activities into Egypt.
The group signed a concession agreement to develop and operate a multi-purpose port in Safaga. It also signed two 15-year agreements, a memorandum of understanding (MoU) and three Head of Terms (HoT) concerning ports located in Red Sea region and the Mediterranean Sea.
With these agreements in place, AD Ports will have expanded access to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish.
The 30-year concession agreement was signed with the Red Sea Ports Authority, allowing AD Ports to develop and operate a multi-purpose terminal at Safaga Port, a strategic location on the Red Sea coast. It will be the first internationally operated port in the Upper Egypt region, and is expected to bring significant cost savings to traders, industries and businesses located in the region.
The terminal will be developed over an approximate area of 810,000 square meters and will have a quay wall of up to 1,000 meters. It will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO. It is scheduled to become operational in Q2 2025.
AD Ports Group will invest a total of up to $200 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ network inside the concession area. There will be no currency exposure associated with the operations of the port as all revenues will be dollarised.
AD Ports – Red Sea Port Authority agreement
Capt Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “AD Ports Group’s significant concession agreement with the Red Sea Port Authority for the development of Safaga Port has the potential to play a major role in the global supply chain.
“As we look to the future, AD Ports Group is proud to continue developing the infrastructure of Egyptian ports and terminals. The significant opportunities we can leverage through our agreements with the Red Sea Ports Authority and the General Authority of Suez Canal Economic Zone will increasingly enhance our commercial offering across the region.”
The 15-year agreements for the development of two cement terminals in Al Arish Port and West Port Said Port were signed with the General Authority for the Suez Canal Economic Zone. It will have a combined investment of 1 billion Egyptian pounds (around $33 million) in both terminals.
AD Ports Group will construct silos with a storage capacity of up to 60,000 tonnes in Al Arish Port and 30,000 tonnes in West Port Said. Each terminal will be able to handle 1.0-1.5 million tonnes annually. Both terminals which will be operational in Q4 2023.
The MoU with the General Authority for the Suez Canal Economic Zone is for the purpose of potential collaboration in various transportation and infrastructure projects, with an initial focus on the development of the East Port Said multi-purpose terminal. The HoTs were for the development of three terminals, including RoRo, cruise, and multipurpose.
The UAE is Egypt’s second leading trade partner in the region and the number one country in foreign direct investments.
Follow us on
