ABU DHABI,18th March, 2023 (WAM) – AD Ports Group, the main facilitator of world commerce, logistics, and business, at present introduced the signing of a concession settlement to develop and function a multi-purpose port in Safaga in Egypt, along with signing of two 15-year agreements, a Memorandum of Understanding (MoU) and three Head of Phrases (HoT) regarding ports positioned in Egypt’s Crimson Sea area and the Mediterranean Sea, enabling a significant growth of the Group’s actions into Egypt.
These agreements enable for expanded entry to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Stated, Hurghada, Sharm El Sheikh and Al Arish.
The agreements had been signed in Cairo within the presence of Lieutenant-Common Kamel al-Wazir, Minister of Transport of Egypt, Mariam Al Kaabi, Ambassador of the UAE to Egypt, Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, Main Common Osama Saleh, Vice- Chairman of the Board of Administrators of the Crimson Sea Port Authority, Walid Jamal Eldin, Chairman of the Common Authority for the Suez Canal Financial Zone, in addition to Saif Al Mazroui, CEO, Ports Cluster, AD Ports Group, and different senior officers.
AD Ports Group and the Crimson Sea Ports Authority signed a 30-year concession settlement that enables the Group to develop and function a multi-purpose terminal at Safaga Port, a strategic location on the Crimson Coastline of Egypt.
Safaga Port would be the first internationally operated port within the Higher Egypt area, bringing important value financial savings to merchants, industries and companies positioned on this area.
The terminal will likely be developed over an approximate space of 810,000 sq. meters and is about to be operational in Q2 2025. It can boast a quay wall of as much as 1,000 meters and it’ll have the capability to deal with 5 million tonnes of dry bulk and basic cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.
AD Ports Group will make investments a complete of as much as USD200 million in superstructure and tools, buildings, and different actual property amenities and utilities’ community contained in the concession space. Nearly all of this CapEx will likely be spent in 2024 and 2025.
There will likely be no forex publicity related to the operations of the port as all revenues will likely be dollarized.
The agreements for the event of two cement terminals in Al Arish Port and West Port Stated Port had been signed between AD Ports Group and the Common Authority for the Suez Canal Financial Zone requiring a mixed funding of EGP 1 billion (round US$ 33 million- at present prevailing market charges) in each terminals. As per the 15-year agreements, that are topic to the approval of the Common Authority for the Suez Canal Financial Zone Board, AD Ports Group will assemble silos with a storage capability of as much as 60,000 tonnes in Al Arish Port and 30,000 tonnes in West Port Stated; every terminal will be capable to deal with 1.0 – 1.5 million tonnes yearly. Each terminals which will likely be operational in This fall 2023, are anticipated to contribute to doubling Egypt’s cement exports to world markets.
The MoU for the aim of potential collaboration in numerous transportation and infrastructure initiatives, with an preliminary concentrate on the event of the East Port Stated multi-purpose terminal, in addition to a logistics zone and financial zone, was signed between AD Ports Group and The Common Authority for the Suez Canal Financial Zone.
The Head of Phrases for the event of three terminals, together with RoRo, cruise, and multipurpose. The settlement was signed between AD Ports Group and The Common Authority for the Suez Canal Financial Zone.
The Head of Phrases for the administration and operation of a cruise terminal positioned within the port metropolis of Hurghada in Egypt was signed between AD Ports Group and the Crimson Sea Ports Authority.
The Head of Phrases for the event, administration and operation of a cruise terminal positioned within the port metropolis of Sharm El Sheikh in Egypt was signed between AD Ports Group and the Crimson Sea Ports Authority.
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, mentioned: “AD Ports Group’s important concession settlement with the Crimson Sea Port Authority for the event of Safaga Port has the potential to play a significant position within the world provide chain, evidencing, as soon as once more, that our key strategic partnerships in Egypt drive the development of the Group’s portfolio of value-added investments. Consistent with the imaginative and prescient of our sensible management, AD Ports Group is dedicated to not solely enabling new commerce connections, but additionally to offering strategic infrastructure options to spice up tourism to assist the diversification of each our nation’s economies.”
He added: “As we glance to the long run, AD Ports Group is proud to proceed creating the infrastructure of Egyptian ports and terminals. The numerous alternatives we will leverage by our agreements with the Crimson Sea Ports Authority and the Common Authority of Suez Canal Financial Zone will more and more improve our business providing throughout the area.”
Saif Al Mazroui, Chief Government Officer of the Ports Cluster at AD Ports Group, mentioned: “As a part of AD Ports Group, our Ports Cluster is at the moment concerned in a variety of initiatives all through Egypt, and particularly in Safaga Port. Our experience as facilitators of world commerce, in addition to builders and operators of strategic port infrastructure initiatives, mixed with Safaga Port’s strategic location on the Crimson Sea, signifies that we’re uniquely positioned to ship actions from managing port and logistics operations to offering vacationers with entry to Egypt’s fascinating historical past and tradition, It will lend assist to and promote the expansion and diversification of the Egyptian financial system.”
These agreements construct upon the sturdy historic and financial ties between the UAE and Egypt which just lately celebrated 50 years of friendship and co-operation.
The UAE is Egypt’s second main commerce associate within the area and the primary nation in overseas direct investments, accounting for 29 per cent of overseas investments in Egypt, whereas Egypt is the fifth main commerce associate of the UAE by way of non-oil commerce, accounting for seven % of the entire Emirati non-oil commerce with Arab international locations.
