30-Year Concession Agreement Signed By AD Ports Group To Build And Manage Egypt’s Safaga Port
The Red Sea Port Authority and AD Ports Group have agreed to a 15-year concession deal for developing and managing a cutting-edge, multi-use port in Safaga, Egypt.
To gain access to the terminals, cruise routes, and logistics activities at Safaga, Ain Sokhna, Hurghada, Sharm El Sheik, Port Said, and Al Arish, this also includes three Head of Terms.
Thanks to this momentous occasion, AD Ports Group now has a world-class logistical infrastructure and a global reach.
A 15-year concession agreement between the Red Sea Port Authority and AD Ports Company will see the creation and operation of a modern, multipurpose port in Safaga, Egypt.
This includes three Head of Terms for Safaga, Ain Sokhna, Hurghada, Sharm El Sheik, Port Said, Al Arish terminals, cruise routes, and logistical activities. This historical event has given AD Ports Group a world-class logistics infrastructure and a global footprint.
Port of Safaga Concession Agreement
A historic 30-year concession agreement for constructing and managing a multipurpose terminal at Safaga Port, located on the Red Sea coast of Egypt, has been reached between AD Ports Group and the Red Sea Ports Authority.
In the Upper Egypt region, this will be the first terminal of its sort. It will have a 1,000-meter-long quay wall and a capacity of 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450 thousand TEUs of containerized cargo, and 50 thousand CEUs of RORO.
This historic deal will guarantee that it will be operational by Q2 2025 and save money for traders, industries, and enterprises in the area.
AD Ports Group is beginning an exciting new chapter for the Red Sea region’s residents by making up to USD200 million in infrastructure, buildings, real estate facilities, and utility networks within the concession area (to be made in 2024 & 2025).
Also, one can be confident that port operations won’t have any currency exposure because all revenues will be dollarized. As a result, you can count on getting the same amount of money for your port regardless of exchange rate swings!
Agreements for two cement terminals
According to agreements between AD Ports Group and the General Authority for the Suez Canal Economic Zone, two cement terminals will be built, one at Al Arish Port and one at the West Port Said.
The estimated total investment for the 15-year deal is EGP 1 billion (about US$ 33 million), subject to approval by the General Authority Board.
Silos with a 60,000-tonne capacity will be present in the Al Arish Port terminal, while those at the West Port Said terminal will have a 30,000-tonne capacity.
If permitted, it is anticipated that these terminals will be up and running by Q4 2023, giving Egypt the opportunity to more than treble its cement exports to foreign markets.
The Memorandum of Understanding for Port Said
A Memorandum of Understanding between AD Ports Group and The General Authority for the Suez Canal Economic Zone was signed to investigate potential cooperation on various infrastructure and transportation projects.
Their initial focus is developing East Port Said’s multipurpose terminal and a logistics and economic zone.
HoT in Sokhna, Hurghada, Sharm El Sheikh
An agreement on the construction of three ports, including a RoRo, cruise, and multipurpose facility, as well as a logistics zone and economic zone, has been agreed between The AD Ports Group and The General Authority for the Suez Canal Economic Zone.
An agreement establishing the guidelines for managing and operating a cruise terminal in Hurghada, Egypt, has been signed between the AD Ports Group and the Red Sea Ports Authority.
Capt. Mohamed Juma Al Shamisi, the Group CEO of AD Ports Group and Managing Director, recently inked the Head of Terms with the Red Sea Ports Authority to construct, administer, and operate a cruise terminal in Sharm El Sheik, Egypt.
This agreement is viewed as a wise decision that will significantly impact the world’s tourism industry and diversify economies.
Chief Executive Officer of the Ports Cluster at AD Ports Group Saif Al Mazroui mentioned how this arrangement could promote international trade and make it simpler for tourists to experience Egyptian culture.
This agreement commemorates 50 years of friendship between Egypt and the UAE and highlights their long-standing partnership. With 29% of all foreign investments flowing from there, the UAE ranks Egypt’s second-largest trading partner. Egypt ranks seventh for non-oil trade with the Emiratis.
Source: Zawya, Hellenic Shipping News