AD Ports signs concession deal to operate Egypt’s Safaga terminal

UAE’s AD Ports Group has signed a concession agreement with Egypt’s Red Sea Ports Authority to develop and operate a multi-purpose terminal at Safaga Sea Port.

The deal will see an investment of $200m over the next three years to develop a state-of-the-art port facility within the strategic location of the Red Sea. It will be the first internationally operated port serving the Upper Egypt region.

The total investment will cover superstructure, equipment, buildings, and utilities within the concession area to create advanced facilities and leading-edge infrastructure.

AD Ports said that the new Safaga 2 terminal is on track to become operational by 2025. The project is expected to bring substantial economic impact, with cost savings and efficiency improvements to traders and businesses in the region.

The 810,000 square metre project will have a dock length of 1,100 metres and a depth of 17 metres, AD Ports said in a statement.

“The confidence and trust placed by the Egyptian government and our partners is a testament to AD Ports Group’s capabilities and experience in developing ports and terminals infrastructure,” said Mohamed Juma Al Shamisi, managing director and group CEO at AD Ports Group.

“Through this agreement, we aim to spur economic development, create jobs, boost local industries, and attract further investments into the region. We look forward to working closely with our partners to make this vital project a success.”

AD Ports’ sprawling portfolio

Meanwhile, the signing of a definitive concession agreement with the Red Sea Ports Authority follows a string of deals and agreements as AD Ports seeks to become a more diversified, integrated logistics company.

The Abu Dhabi-based logistics behemoth completed the acquisition of Spain’s Noatum in July in a deal valued at $722m (Dhs2.65bn). The landmark acquisition brought together two major industry players to form a global powerhouse in the trade and logistics industry, with Noatum assuming the leadership of AD Ports’ Logistics Cluster.

In October, Noatum fully acquired Spain’s Sesé Auto Logistics for EUR81m ($84.7m), as part of the logistics firm’s broader strategy to boost its position in the global automotive sector. Earlier in the year, AD Ports partnered with Egypt’s Suez Canal Economic Zone (SCZone) to develop several projects in ports within the economic zone.

The port operator also signed a 50-year concession agreement with Karachi Port Trust to operate and develop the Karachi Gateway Terminal, berths 6 to 9 at Karachi Port in June.

The shipping and logistics group posted Dhs4.24bn in third-quarter revenue, a 189 per cent year-on-year increase while its net profit surged by 20 per cent to Dhs403m.

Read: Saudi Arabia’s Mawani signs four contracts worth SAR1bn