AD Ports Group signed several agreements to expand its presence and increase its access to ports in Egypt.
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 on the Red Sea coast of Egypt.
“Safaga Port will be the first internationally operated port in the Upper Egypt region, bringing cost savings to traders, industries and businesses located in this region,” said AD Ports.
The terminal will be developed over an approximate area of 810,000 m² and is set to be operational in the second quarter of 2025. It will boast a quay wall of up to 1,000 meters 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.
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 capital expenditure will be spent in 2024 and 2025.
Furthermore, AD Ports inked another two agreements for the development of two cement terminals in Al Arish Port and West Port Said Port with the General Authority for the Suez Canal Economic Zone requiring a combined investment of around US$33 million in both terminals.
As per the 15-year agreements, which are subject to the approval of the General Authority for the Suez Canal Economic Zone Board, 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 1-1.5 million tonnes annually.
Both terminals, which will be operational in the fourth quarter of the year, are expected to contribute to doubling the country’s cement exports to global markets.
Moreover, AD Ports Group and the General Authority for the Suez Canal Economic Zone signed a Memorandum of Understanding (MoU) 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, as well as a logistics zone and economic zone.
In addition, AD Ports announced three Head of Terms agreements. The first one, signed between AD Ports Group and the General Authority for the Suez Canal Economic Zone, concerns the development of three terminals, including RoRo, cruise, and multipurpose, at Sokhna Port.
The second one is about the management and operation of a cruise terminal located in the port city of Hurghada in Egypt and was signed between AD Ports Group and the Red Sea Ports Authority.
Last but not least, AD Ports Group and the Red Sea Ports Authority agreed to develop manage and operate a cruise terminal located in the port city of Sharm El Sheikh in Egypt, based on the third HoT.
