AD Ports Group, the leading facilitator of global trade, logistics, and industry, said it has signed a 30-year concession agreement with the Red Sea Ports Authority to develop and operate a multi-purpose port in Safaga in Egypt.
As per the deal, the Abu Dhabi group will be responsible for the development and operation of a multi-purpose terminal at Safaga Port, a strategic location on the Red Sea coast of Egypt.
Safaga Port will be the first internationally operated port in the Upper Egypt region, bringing significant cost savings to traders, industries and businesses located in this region.
The terminal will come up on a 810,000 sq m area and is set to be operational in Q2 2025. It will boast a quay wall of up to 1,000 m and it will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450,000 TEUs of containerised cargo, and 50,000 CEUs of RoRo.
In addition to this, the Abu Dhabi Group has signed two 15-year agreements - a MoU and three Head of Terms (HoTs) - concerning ports located in Egypt’s Red Sea region and Mediterranean Sea, enabling a major expansion of the group’s activities into Egypt.
These agreements allow for expanded access to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish, said AD Ports Group in its statement.
The agreements were signed in Cairo in the presence of Lieutenant-General Kamel Al Wazir, Minister of Transport of Egypt, Mariam Al Kaabi, Ambassador of UAE to Egypt, Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, Major General Osama Saleh, Vice-Chairman of Red Sea Port Authority, Walid Jamal Eldin, Chairman of General Authority for Suez Canal Economic Zone as well as Saif Al Mazroui and CEO of Ports Cluster, AD Ports Group.
AD Ports Group said it will invest a total of $200 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ network inside the concession area. The majority of this CapEx will be spent in 2024 and 2025.
The agreements for the development of two cement terminals in Al Arish Port and West Port Said Port were signed between AD Ports Group and the General Authority for the Suez Canal Economic Zone requiring a combined investment of EGP1 billion ($33 million) in both terminals.
As per the 15-year agreements, 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, are expected to contribute to doubling Egypt's cement exports to global markets.-TradeArabia News Service