Dubai, UAE — AD Ports Group said Sunday it has signed a concession agreement to develop and operate a multi-purpose port in Safaga in Egypt besides two 15-year agreements, an MoU and three Head of Terms with Egyptian authorities for multi-purpose, RoRo and cruise terminals, as well as logistics services across key Red Sea and Mediterranean ports.
These agreements are aimed at enabling a major expansion of the AD Ports’ activities into Egypt, the Group said in a statement.
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 Lieutenant-General Kamel al-Wazir, Minister of Transport of Egypt, H.E. Mariam Al Kaabi, Ambassador of the UAE to Egypt, Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
Safaga Port concession agreement
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 statement said.
The terminal will be developed over an approximate area of 810,000 square meters and is set to be operational in Q2 2025. It will feature a quay wall of up to 1,000 meters and it will have the capacity to handle 5 million tons of dry bulk and general cargo, 1 million tons of liquid bulk, 450K TEUs of containerized cargo, and 50K CEUs of RORO.
AD Ports Group will invest a total of up to $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 dollarized.
