AD Ports Group has announced that it has signed a definitive concession agreement with the Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Sea Port in Egypt.
The Safaga Port definitive agreement, sanctioned under the Law on the Granting of Commitment Contract issued on November 1, 2023, marks a significant advancement in the strategic partnership between AD Ports Group and RSPA.
[Source: AD Ports]
"This collaboration will see an investment of $200 million over 3 years, aimed at developing a state-of-the-art facility within the strategic location of the Red Sea and will be the first internationally operated port serving the Upper Egypt region," AD Ports said in a statement.
It added that the total investment would cover superstructure, equipment, buildings, and utilities within the concession area to create advanced facilities and leading-edge infrastructure.
The terminal, spanning approximately 810,000 square meters, will feature a 1,000-meter quay wall and will handle diverse cargo types, including dry bulk, liquid bulk, containerised cargo, and Ro-Ro.
AD Ports noted that the terminal is on track to become operational by 2025.
"We are delighted to have signed the definitive concession agreement to develop and operate a multi-purpose terminal in Egypt's Safaga Port. The confidence and trust placed by the Egyptian government and our partners is a testament to AD Ports Group's capabilities and experience in developing ports and terminals infrastructure," said Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group.
He noted that this milestone embodies the "strength of trade ties" between the two nations.
Saif Al Mazrouei, CEO of Ports Cluster at AD Ports Group, added that AD Ports Group's expertise in port infrastructure development and operations positions the company "uniquely" to leverage those skills and knowledge to play a key role in the next stage in the evolution of Safaga Port.
"Moreover, Safaga's strategic position on the Red Sea coast allows us to not only enhance our 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," he said.
This project is a significant step in the trade ties and cooperation between the UAE and Egypt.
AD Ports said in a statement that the UAE stands as Egypt's second leading trade partner in the region, with Egypt ranking as the fifth leading trade partner of the UAE in non-oil trade with Arab countries.
The definitive agreement was signed at the Egyptian Cabinet headquarters in Cairo in the presence of His Excellency Dr. Mostafa Madbouly, prime minister of Egypt, His Excellency Lieutenant-General Eng. Kamel El Wazir, minister of transport of Egypt; Her Excellency Mariam Al Kaabi, ambassador of the UAE to Egypt; and Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group.
Ahmed Al Mutawa, regional CEO of AD Ports Group, and Major General Osama Saleh, vice-chairman of the Board of Directors of the Red Sea Port Authority, also joined the signing.
