The AD Ports Group from the UAE has entered into a concession agreement with Egypt’s Red Sea Ports Authority for the development and operation of a versatile terminal at Safaga Sea Port.
This collaboration involves a $200M investment over the next three years to establish a state-of-the-art port facility strategically located in the Red Sea, becoming the first internationally operated port serving the Upper Egypt region.
The comprehensive investment will encompass infrastructure components such as superstructure, equipment, buildings, and utilities within the concession area, aiming to create advanced facilities, according to Gulf Business.
AD Ports stated that the new Safaga 2 terminal is anticipated to commence operations by 2025, bringing significant economic impact, cost savings, and efficiency improvements for traders and businesses in the region.
Covering an area of 810,000 square meters, the project will feature a dock length of 1,100 meters and a depth of 17 meters, as outlined in the statement by AD Ports.
Financial Resilience and Robust Growth
Mohamed Juma Al Shamisi, Managing Director and Group CEO at AD Ports Group, expressed confidence in the company’s capabilities and experience, highlighting the aim to foster economic development, job creation, support local industries, and attract additional investments into the region through this vital project.
The agreement with the Red Sea Ports Authority is part of AD Ports’ strategic moves to diversify and become a more integrated logistics company. Following the acquisition of Spain’s Noatum in July, valued at $722M, and the full acquisition of Spain’s Sesé Auto Logistics in October, AD Ports has been consolidating its position in the global trade and logistics industry.
Additionally, AD Ports has engaged in various partnerships and agreements, including a 50-year concession with Karachi Port Trust and collaborations with Egypt’s Suez Canal Economic Zone (SCZone) for multiple projects within the economic zone.
In the third quarter, the shipping and logistics group reported a revenue of AED 4.24B, marking a 189 per cent year-on-year increase, while net profit surged by 20 per cent to AED 403M.