AD Ports Group inks 30-year deal to develop, operate port in Egypt

AD Ports Group and Red Sea Ports Authority have signed a 30-year concession agreement in Cairo to develop and operate a multi-purpose port in Safaga, a strategic location on the Red Sea coast of Egypt.

The company also inked two 15-year agreements and a memorandum of understanding (MoU).

Additionally, three head-of-terms (HoT) agreements involving ports located in Egypt’s Red Sea region and the Mediterranean Sea were also signed, marking a major expansion of the port operator’s presence in Egypt.

These agreements enable expanded access to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish.

Safaga Port development

Safaga Port will bring significant cost savings to traders, industries and businesses located in this region.

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 include a quay wall of up to 1,000 meters and it will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.

AD Ports Group will invest a total of up to $200m 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 dollarised.

We have signed a concession agreement to develop and operate a multi-purpose port in Safaga in Egypt, in addition to signing two 15-year agreements, an MoU and three HoTs concerning ports located in Egypt’s Red Sea region & the Mediterranean Sea. https://t.co/4PZjTZ0v3K pic.twitter.com/lRC4l2Ce4Z

— AD Ports Group (@ADPortsGroup) March 18, 2023

Two additional agreements

The agreements for the development of two cement terminals in Al Arish Port and West Port Said Port were signed between AD Ports Group and the General Authority for the Suez Canal Economic Zone requiring a combined investment of EGP1bn (around $33m –  at current prevailing market rates) in both terminals.

As per the 15-year agreements, which are subject to the approval of the General Authority for the Suez Canal Economic Zone Board, AD Ports Group will construct silos with a storage capacity of up to 60,000 tonnes in Al Arish Port and 30,000 tonnes in West Port Said.

Each terminal will be able to handle 1.0 – 1.5 million tonnes annually. Both terminals which will be operational in Q4 2023, are expected to contribute to doubling Egypt’s cement exports to global markets.

The MoU for the purpose of potential collaboration in various transportation and infrastructure projects, with an initial focus on the development of the East Port Said multi-purpose terminal, as well as a logistics zone and economic zone, was signed between AD Ports Group and The General Authority for the Suez Canal Economic Zone.

Head of terms highlights

The Head of Terms for the development of three terminals, including RoRo, cruise, and multipurpose. The agreement was signed between AD Ports Group and The General Authority for the Suez Canal Economic Zone.

The Head of Terms for the management and operation of a cruise terminal located in the port city of Hurghada in Egypt was signed between AD Ports Group and the Red Sea Ports Authority.

The Head of Terms for the development, management and operation of a cruise terminal located in the port city of Sharm El Sheikh in Egypt was signed between AD Ports Group and the Red Sea Ports Authority.

Advancement of AD Ports Group’s portfolio

Captain Mohamed Juma Al Shamisi, MD and group CEO, AD Ports Group, 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, evidencing, once again, that our key strategic partnerships in Egypt drive the advancement of the group’s portfolio of value-added investments.

He added: “As we look to the future, AD Ports Group is proud to continue developing the infrastructure of Egyptian ports and terminals. The significant opportunities we can leverage through our agreements with the Red Sea Ports Authority and the General Authority of Suez Canal Economic Zone will increasingly enhance our commercial offering across the region.”

Saif Al Mazroui, CEO of the Ports Cluster at AD Ports Group, said: “As part of AD Ports Group, our ports cluster is currently involved in a wide range of projects throughout Egypt, and in particular in Safaga Port.

“Our expertise as facilitators of global trade, as well as developers and operators of strategic port infrastructure projects, combined with Safaga Port’s strategic location on the Red Sea, means that we are uniquely positioned to deliver activities from managing port and logistics operations to providing tourists with access to Egypt’s fascinating history and culture, This will lend support to and promote the growth and diversification of the Egyptian economy.”

The UAE is Egypt’s second leading trade partner in the region and the number one country in foreign direct investments, accounting for 29 per cent of foreign investments in Egypt, while Egypt is the fifth leading trade partner of the UAE in terms of non-oil trade, accounting for seven percent of the total Emirati non-oil trade with Arab countries.

In other news, AD Ports Group has created a joint venture with Uzbekistan’s SEG ENERA Group to provide end-to-end global logistics services across the central Asian country.

Read: AD Ports Group to drive presence in Uzbekistan logistics market via

The new venture, which will operate under the ADL-Ulanish brand, will offer a variety of advanced services including freight forwarding, air and land logistics, warehousing and storage, customs clearance services and the development of inland container depots and dry ports.