Wednesday, May 15, 2024
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Home » UAE’s AD Ports Plans $200m Investment for Safaga Port in Egypt

UAE’s AD Ports Plans $200m Investment for Safaga Port in Egypt

by Josh Saunders
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AD Ports Group has reached a 30-year concession agreement with the Red Sea Ports Authority for the development and operation of a multi-purpose terminal in Egypt’s Safaga Port.

The Abu Dhabi-based port operator will spend up to $200m, with the bulk of the amount invested in 2024 and 2025, for buildings, superstructures and equipment, as well as other real estate facilities and a utility network within the concession area.

Expected to start operations in the second quarter of 2025, the new terminal is projected to create major cost savings for the region’s industries and traders.

The terminal will be designed to manage five million tons of dry bulk and general cargo along with one million tons of liquid bulk.

It will also be able to handle 450,000 twenty-foot equivalent units (TEUs) of containerised cargo and 50,000 car equivalent units (CEUs) of RoRo.

To be developed over an area of 810,000m², it will feature a quay wall of up to 1,000m.

The United Arab Emirates (UAE)-based operator also struck two 15-year agreements, one memorandum of understanding (MoU) and three head of terms (HoT) for ports in Egypt’s Red Sea region and the Mediterranean Sea.

The 15-year agreements have been signed for the development of two cement terminals in Al Arish Port and West Port Said, with each having the capacity to handle between one and 1.5 million tons a year.

Entailing an investment of $33m, the developments will involve the construction of silos with storage capacities of up to 30,000t and 60,000t in West Port Said and Al Arish Port, respectively.

The MoU was signed with The General Authority for the Suez Canal Economic Zone and will initially focus on developing a multi-purpose terminal, logistics zone and economic zone at the East Port Said.

The Sokhna HoT is for the development of RoRo, cruise and multipurpose terminals, while the Hurghada HoT is for the management and operation of a cruise terminal in the port city of Hurghada.

The Sharm El Sheikh HoT focuses on the development, management and operation of a cruise terminal in the port city of Sharm El Sheikh.

Last September, AD Ports marked its first overseas acquisition with a 70% stake purchase in International Associated Cargo Carrier (IACC) for $140m.

Source : Ship Technology

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