Abu Dhabi Ports concludes a 30-year concession agreement to develop and operate the Egyptian Safaga

The Abu Dhabi Ports Group announced the signing of a concession agreement to develop and operate the Egyptian port of Safaga, in addition to two agreements to establish two terminals in the port of Al-Arish and the port of West Port Said to handle cement, and four preliminary agreements that include Egyptian ports overlooking the Red and Mediterranean seas, which contributes to the expansion of the group’s activities significantly in Egypt. .

These agreements aim to provide multi-purpose ports, cruise ship lines, and enhance logistical capabilities in the cities of Safaga, Ain Sukhna, Port Said, Hurghada, Sharm El-Sheikh, and El-Arish.

The agreements were signed in Cairo in the presence of Lieutenant General Kamel Al-Wazir, Minister of Transport and Communications of the Arab Republic of Egypt, Captain Mohamed Jumaa Al Shamsi, Managing Director and CEO of Abu Dhabi Ports Group, Major General Osama Saleh, Vice Chairman of the General Authority for Red Sea Ports, Walid Gamal El Din, President The General Authority for the Development of the Suez Canal Economic Zone, Saif Al Mazrouei, CEO of the Ports Sector at Abu Dhabi Ports Group, and a number of senior officials from both sides.

Strategic location

The Abu Dhabi Ports Group and the General Authority for Red Sea Ports signed a 30-year concession agreement, granting the group the right to develop and operate a multi-purpose terminal in the Egyptian port of Safaga, which enjoys a strategic location overlooking the Red Sea coast. Thus, the port of Safaga will be the first international port in the Upper Egypt region, as it will achieve significant cost savings for workers in the trade and industry sector and companies operating in this region.

Under the agreement, the marine terminal will be developed on an approximate area of 810,000 square metres, and is scheduled to be operational in the second quarter of 2025. The terminal will have a quay wall of up to 1,000 metres, and will be capable of handling five million tons of general and dry cargo. , one million tons of liquid cargo, 450 thousand standard containers, in addition to 50 thousand vehicles.

As part of the concession agreement, the Abu Dhabi Ports Group will allocate total investments of up to $200 million to develop the superstructure, equipping equipment, buildings and other real estate facilities, and the public service network within the concession area, with most of these capital expenditures to be spent between 2024

and 2025. It is expected that the group will not face any risks related to currency fluctuations, as all revenues will be converted into dollars.

Two cement handling stations

Two 15-year agreements were signed between the Abu Dhabi Ports Group and the General Authority for the Development of the Suez Canal Economic Zone, according to which the group will establish two terminals in the port of Al-Arish and the port of West Port Said to handle bulk cement, with an investment in the two terminals amounting to one billion Egyptian pounds (about 33 million US dollars, according to the price of current exchange). The group will also construct silos with a storage capacity of 60,000 tons in the port of Arish, and 30,000 tons in the port of East Port Said. international markets. The two stations are expected to start operating in the fourth quarter of 2023.

Preliminary agreements

An agreement was signed between Abu Dhabi Ports and the General Authority for the Development of the Suez Canal Economic Zone, according to which the group will develop three terminals in Ain Sokhna port, including a ro-ro terminal, a cruise terminal, and another multi-purpose terminal. A second agreement was signed with the General Authority for Red Sea Ports, according to which the group will manage and operate a cruise ship terminal in the port of Hurghada.

A third agreement was also signed with the General Authority for Red Sea Ports, according to which the group will undertake the development, management and operation of a cruise ship terminal in Sharm El-Sheikh port. The Abu Dhabi Ports Group also signed another agreement with the General Authority for the Development of the Suez Canal Economic Zone, which aims to enhance means of joint cooperation in various transport and infrastructure projects in Egypt, with an initial focus on developing a multi-purpose terminal and a logistic and economic zone in East Port Said.

Enable supply chains

Commenting on these agreements, Captain Mohamed Juma Al Shamsi, Managing Director and CEO of Abu Dhabi Ports Group, said: “The signing of the concession agreement in Safaga Port with the General Authority for Red Sea Ports reinforces our active role in enabling the supply chain, and reflects the solidity of our strategic partnerships with our brothers in Egypt in line with The vision of our wise leadership. It is also a step towards expanding our value-added investment portfolio, and confirms our commitment to building new trade links and providing strategic infrastructure solutions that contribute to strengthening the tourism sector and diversifying the economy.”

He added: “As we look at the Abu Dhabi Ports Group to the future, we are proud to continue our efforts to develop the infrastructure of Egyptian ports and marine terminals. The promising opportunities offered by our agreements with the General Authority for Red Sea Ports and the General Authority for the Development of the Suez Canal Economic Zone will undoubtedly enhance our portfolio of services and commercial offers throughout the region.”

Solid foundations

In turn, Saif Al Mazrouei, CEO of the Ports Sector at Abu Dhabi Ports Group, said: “As part of our work under the umbrella of the Abu Dhabi Ports Group, the port sector is currently involved in a wide range of projects across Egypt, especially in the port of Safaga. Thanks to our experience in facilitating global trade, developing and operating strategic port infrastructure projects, in addition to the strategic location enjoyed by the port of Safaga overlooking the Red Sea, we will proceed on solid foundations to manage port operations and provide the necessary logistical services to attract tourists to come to Egypt and learn about its culture. And its civilization, which is deeply rooted in history, also comes within the framework of supporting and promoting growth