Cairo, Abu Dhabi: AD Ports Group signed a definitive concession agreement with the Red Sea Ports Authority (RSPA) to develop and operate a multi-purpose terminal in Egypt’s Safaga Sea Port. This collaboration will see an investment of $200 million over three years to create a state-of-the-art facility within the Red Sea.
It will be the first internationally operated port serving the Upper Egypt region, said authorities. The terminal is on track to become operational by 2025. To create advanced facilities, the investment will cover the concession area’s superstructure, equipment, buildings, and utilities.
The terminal, spanning approximately 810,000 square meters, will feature a 1,000-meter quay wall and handle diverse cargo types, including dry bulk, liquid bulk, containerised cargo, and Ro-Ro.
Port authorities have said the project is expected to bring substantial economic impact, with cost savings and efficiency improvements to traders and businesses in the region. Ahmed Al Mutawa, Regional CEO of AD Ports Group, and Major General Osama Saleh, Vice-Chairman of the Red Sea Port Authority, Board of Directors, signed the agreement.
Al Shamisi said, “With this project, our Group will demonstrate its commitment to enhancing the efficiency of global supply chains, creating faster trade routes and providing diverse logistics solutions for our key strategic trading partners.” “Through this agreement, we aim to spur economic development, create jobs, boost local industries, and attract further regional investments.”
The ‘Safaga Port definitive agreement’, sanctioned under the Law on the Granting of Commitment Contract issued on November 1 this year, marks a significant advancement in the strategic partnership between AD Ports Group and RSPA. Saif Al Mazrouei, CEO of Ports Cluster at AD Ports Group, said, “Safaga’s strategic position on the Red Sea coast will allow us to not only enhance commercial offerings and diversify revenue streams but also contribute to Egypt’s broader economic objectives, setting the stage for further cooperation and opportunities in other sectors.”
The agreement was signed at the Egyptian Cabinet headquarters in Cairo in the presence of Dr Mostafa Madbouly, Egypt’s Prime Minister, Lieutenant-General Eng. Kamel El Wazir, Egypt’s Minister of Transport, Mariam Al Kaabi, Ambassador of the UAE to Egypt, and Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.