Egypt: AD Ports, Red Sea Port Authority ink cruise terminals deal to boost tourism

AD Ports Group has signed a definitive concession agreement with the Red Sea Ports Authority (RSPA) to develop, operate, and manage three cruise terminals at Safaga, Hurghada, and Sharm El Sheikh ports in Egypt.

The announcement comes as part of a broader strategy to enhance Egypt’s cruise tourism sector.

The agreement, which includes a total investment of $4.7m over the next 15 years, aims to make the terminals operational by 2025.

This investment will enable the provision of new services, improved access for cruise operators, and the addition of new itineraries through AD Ports Group’s network in the Red Sea.

The deal is expected to significantly boost cruise passenger volumes and elevate passenger experiences in the region.

The signing ceremony was held at the Egyptian Cabinet headquarters in Cairo.

AD ports signs agreement with SCZONE

Additionally, AD Ports Group and the General Authority of the Suez Canal Economic Zone (SCZONE) initialled two 30-year concession agreements for developing, managing, and operating a Ro-Ro terminal and a cruise terminal at Sokhna Port.

These agreements follow an earlier definitive concession agreement signed in December 2023 for developing and operating a multi-purpose terminal at Safaga Port, with a $200m investment over three years.

“We are thrilled to build upon our initial agreement signed in January. The signings reaffirm our commitment to bolstering the cruise tourism sector in the Red Sea, providing world-class facilities and services to passengers while strengthening bilateral ties between the UAE and Egypt, in line with the vision of our wise leadership,” said Captain Al Shamisi, AD Ports Group’s managing director and group CEO

He added, “Sokhna is strategically positioned on the western shore of the Gulf of Suez. We are keen on collaborating with our partners at the General Authority of the Suez Canal Economic Zone to meet the region’s need for prime cruise and Ro-Ro services.”

Clean energy deal

In other news, AD Ports Group recently signed an MoU with a consortium of Egyptian companies to develop a green methanol storage and export facility to supply low-carbon fuel for maritime transport.

AD Ports said, in a statement, that the green methanol facility presents an opportunity to establish clean alternative energy storage solutions. This synthetic fuel is produced renewably from green hydrogen and without polluting emissions. The ports operator said the chemical compound is a promising alternative to fossil fuels in industries where decarbonisation is challenging.