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20-03-23

AD Ports Group Inks 30-Year Concession Deal to Develop, Operate Egypt's Safaga Port

(MENAFN) AD Ports Group has signed a 30-year concession agreement with the Red Sea Ports Authority to invest USD200 million in the development and operation of Safaga Port in Egypt. The project is expected to be completed and operational by the second quarter of 2025 and will be the first internationally operated port in Upper Egypt. The investment will be used to build buildings, real estate facilities, and utility networks within the concession area. The project will save costs for traders, industries, and businesses within the region. The port will have an area of approximately 810,000 sq. m and a quay wall of almost 1,000 meters. It will manage 5 million tons of dry bulk, 1 million tons of liquid bulk, 450,000 twenty-foot equivalent units of containerized cargo, and 50,000 car-equivalent units of roll-on, roll-off cargo.

In addition to the concession agreement, AD Ports Group has signed two additional 15-year agreements, a memorandum of understanding, and three heads of terms concerning ports located in Egypt’s Red Sea region and the Mediterranean Sea. The two 15-year agreements pertain to two cement terminals with an investment value of USD33 million. The terminals will double Egypt’s cement exports to global markets and will become operational in the fourth quarter of this year. The MOU will focus on the development of the East Port Said multipurpose terminal, as well as enable potential collaborations in numerous transportation and infrastructure schemes. The three heads of terms were signed with the aim of fostering terminals in Egypt’s coastal cities of Sokhna, Hurghada, and Sharm El-Sheikh.

AD Ports Group’s investment in the Safaga Port project will play a significant role in the global supply chain, according to Mohamed Juma Al-Shamisi, managing director and group CEO of AD Ports Group. He added that the company’s strategic partnerships in Egypt are driving the advancement of its portfolio of value-added investments. The agreements and joint ventures signed at the forum signify a commitment to further strengthening the economic relationship between the UAE and Egypt while also providing strategic infrastructure solutions to boost tourism to aid the diversification of both nations’ economies.
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