Hutchison Ports, a leading terminal operator, has announced the signing of a long-term agreement with the Egyptian Navy on the development and operation of a new container terminal in Abu Qir, Egypt.
The total investment in the new terminal, which will be located inside the Abu Qir Naval Base, at the northern end of the Suez Canal, is naturally sheltered by the Abu Qir peninsula, is estimated to be US$730 million. The terminal will offer short detours for vessels operating on the Asia to Europe trades to unload and load Eastern Mediterranean transhipment cargo.
The greenfield project will be connected to a new two-way highway with three traffic lanes on each side and residential bypass, linking it to Alexandria within 20km, as well as to the national road network to the capital city of Cairo and other major cities across the country.
An online signing ceremony was jointly hosted by the commander in chief vice admiral Ahmed Khaled Saied, Egyptian Navy and Eric Ip, group managing director of Hutchison Ports together with the management team joining from Hong Kong and the United Kingdom.
"The development of Abu Qir signifies the continuation of our successful partnership with Hutchison Ports. We are seeing an increase in export cargoes, there is a need for a world-class container terminal to facilitate growing trade. This also echoes with President EI Sisi’s Egypt Vision 2030 of regional leadership and sustainable development," commented Ahmed Khaled Saied, speaking at the ceremony.
Highlighting the significance of the Abu Qir project, Eric Ip said, "Egypt has always been an important market to us justified by the country’s growing population and economy that are fuelling container trade."
The US$730 million project will be funded primarily by the joint investment of the two partners in phases, with a handling capacity of 2.0 million TEU upon completion. It will have a total quay length of 1,200m and a 60,000m2 terminal yard, an additional 100,000m2 of land exclusively reserved for yard expansion.
The new terminal has a concession period of 38 years and the first phase is expected to commence operations in 2022.