AD Ports to develop and operate Egypt’s Safaga Port
AD Ports Group has announced the signing of a concession agreement to develop and operate a multi-purpose port in Safaga in Egypt, in addition to signing of two 15-year agreements, a Memorandum of Understanding (MoU) and three Head of Terms (HoT) concerning ports located in Egypt’s Red Sea region and the 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.
The agreements were signed in Cairo in the presence of His Excellency Lieutenant-General Kamel al-Wazir, Minister of Transport of Egypt, H.E. Mariam Al Kaabi, Ambassador of the UAE to Egypt, Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, Major General Osama Saleh, Vice- Chairman of the Board of Directors of the Red Sea Port Authority, Walid Jamal Eldin, Chairman of the General Authority for the Suez Canal Economic Zone, as well as Saif Al Mazroui, CEO, Ports Cluster, AD Ports Group, and other senior officials.
Safaga Port concession agreement
AD Ports Group and the Red Sea Ports Authority signed a 30-year concession agreement that allows the group to develop and operate 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 be developed over an approximate area of 810 000 m2 and is set to be operational in 2Q25. It will boast a quay wall of up to 1000 m and have the capacity to handle 5 million t of dry bulk and general cargo, 1 million t of liquid bulk, 450 000 TEUs of containerised cargo, and 50 000 CEUs of RORO.
AD Ports Group will invest a total of up to US$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.
There will be no currency exposure associated with the operations of the port as all revenues will be dollarised.
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/28032023/ad-ports-to-develop-and-operate-egypts-safaga-port/
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