AD Ports Group has announced the signing of a 30-year concession agreement with the Red Sea Ports Authority to develop and operate a multi-purpose port in Safaga, Egypt.
The terminal will be developed over an approximate area of 810,000 square metres and is set to be operational in Q2 2025.
Safaga Port is strategically located on the Red Sea.
The port will boast a quay wall of up to 1000 metres and it will have the capacity to handle 450,000 TEU of containerised cargo, 50,000 CEU of Ro-Ro, 5 million tonnes of dry bulk and general cargo, and 1 million tonnes of liquid bulk.
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 capital expenditure will be spent in 2024 and 2025.
These agreements allow for expanded access to multipurpose terminals, cruise routes, and logistics capabilities in multiple ports, including Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish, according to AD Ports.
READ: AD Ports Group invests $140 million to Egyptian maritime firms
Several other deals and collaborations have been made concerning ports located in Egypt’s Red Sea region and the Mediterranean Sea.
AD Ports has also signed two 15-year agreements in Al Arish Port and West Port Said Port with the General Authority for the Suez Canal Economic Zone (SCZONE).
This includes a combined investment of EGP1 billion ($33 million) in both terminals.
A Memorandum of Understanding (MoU) was also signed with SCZONE aimed at the development of the East Port Said multi-purpose terminal, as well as a logistics zone and economic zone.
The agreements are the latest in a series between AD Ports Group and maritime organisations in Egypt, following the concession contract signed by the Suez Canal Authority worth $500 million, to establish a second container terminal in East Port Said.
“AD Ports Group’s significant concession agreement with the Red Sea Port Authority for the development of Safaga Port has the potential to play a major role in the global supply chain,” said Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
In September 2023, AD Ports announced it completed the acquisition of a 70 per cent equity stake in Transmar International Shipping Company (Transmar) and Transcargo International S.A.E. (TCI).
