Mubasher: AD Ports Group inked a 30-year concession agreement, two 15-year contracts, a memorandum of understanding (MoU), and three heads of terms (HoT) to foster its activities across Egypt, according to a press release.
The deals will expand the UAE-based group’s access to multi-purpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El-Sheikh, and Al Arish.
AD Ports and the Red Sea Ports Authority signed a 30-year concession agreement that allows the group to develop and operate a multi-purpose terminal at Safaga Port. The project will be the first globally operated port in Upper Egypt and will foster industries and businesses in the region.
The terminal will be created over an area of nearly 810,000 square metres and will boast a quay wall of up to 1,000 metres. It will also manage 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450,000 twenty-foot equivalent units (TEUs) of containerised cargo, and 50,000 car-equivalent units (CEUs) of roll-on/roll-off (RORO) cargo.
Meanwhile, the operational process will commence during the second quarter (Q2) of 2025.
The group indicated that it will endorse the project with up to $200 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ networks inside the concession area. The majority of this capital expenditure (CapEx) will be spent during the years 2024 and 2025.
Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports, underlined that the agreement “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.”
Two Cement Terminals
AD Ports and the General Authority for Suez Canal Economic Zone (SCZONE) penned two 15-year agreements to develop two cement terminals in Al Arish Port and West Port Said Port at an aggregated investment of EGP 1 billion (around $33 million).
The group will build 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 have an annual capacity between 1 million and 1.50 million tonnes.
Both terminals, which will start operating in Q4-23, are forecast to contribute to doubling Egypt's cement exports to global markets.
MoU for East Port Said Multi-purpose Terminal
AD Ports and the general authority for SCZONE also inked an MoU for the establishment of the East Port Said multi-purpose terminal. They will also discuss potential collaboration in a number of transportation and infrastructure schemes.
Head of Terms (HoT)
A head of terms was signed between AD Ports and SCZONE for the development of three terminals in Sokhna, including RoRo, cruise, and multipurpose.
Furthermore, the ADX-listed company and the Red Sea Ports Authority penned two heads of terms aimed at the management and operation of a cruise terminal in Egypt's coastal cities of Hurghada and Sharm El-Sheikh.
Al Shamisi elaborated: “As we look to the future, AD Ports 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,” he concluded.
In 2022, the UAE group unveiled a term sheet and head of terms agreement with the Red Sea Ports Authority to develop and operate port projects in Egypt.
Last year, the net profits attributable to the owners of AD Ports amounted to AED 1.26 billion, higher by 50% than AED 845.69 million in 2021.