AD Ports finalises agreement with Egypt to develop and operate Safaga port terminal
AD Ports Group signed an agreement with the Red Sea Ports Authority to develop and operate a multi-purpose terminal at Safaga Sea Port in Egypt to boost economic ties between the UAE and the North African country.
As part of the deal, AD Ports will invest $200 million over three years to develop advanced units and infrastructure at the terminal, including the superstructure, equipment, buildings and utilities, it said.
The 810,000-square-metre terminal is expected to become operational by 2025 and will feature a 1km quay wall and will be capable of handling diverse cargo types, it said. “This significant milestone embodies the strength of trade ties between the two nations and the keenness of the UAE’s wise leadership to continue supporting the ambitious development plans of the Egyptian government,” said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports.
The agreement comes as AD Ports, listed on the Abu Dhabi Securities Exchange, continues to expand its operations globally. In June, it signed a 50-year agreement with Pakistan’s federal agency, Karachi Port Trust, to boost infrastructure at the country’s largest port.
Under the terms of the agreement, a joint venture between AD Ports, as majority shareholder, and UAE-based Kaheel Terminals has been formed to manage, operate and develop berths six to nine at the Karachi Gateway Terminal’s east wharf, the company said at the time.
It also signed a 30-year concession agreement with the government of the Republic of Congo to manage and operate a New East Mole Terminal in the city of Pointe-Noire.
Other deals announced this year include the acquisition of 10 offshore vessels from E-Nav for $200 million to meet growing demand from the energy sector and an €81 million ($84.7 million) deal with Spain’s Grupo Logistico Sese to buy its finished vehicles logistics business.
“Safaga’s strategic position on the Red Sea coast allows [us] to not only enhance our commercial offerings and diversify revenue streams but also contribute to Egypt’s broader economic objectives, setting the stage for further co-operation and opportunities in other sectors,” said Saif Al Mazrouei, chief executive of Ports Cluster at AD Ports.
AD Ports will invest $200m over three years to develop advanced units and infrastructure at the terminal