(MENAFN- Khaleej Times) AD ports Group on Wednesday announced that it has signed a concession agreement with the Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Seaport. Following the government of Egypt's approval, this milestone reaffirms the strong trade ties between the UAE and Egypt.
The agreement was signed at the Egyptian cabinet headquarters in Cairo by Ahmed Al Mutawa, regional CEO, AD Ports Group, and Major General Osama Saleh, vice-chairman of the board of directors of RSPA, in the presence of Dr. Mostafa Madbouly, Egypt's Prime Minister, Lieutenant-General Kamel El Wazir, Egypt's minister of transport, Mariam Al Kaabi, Ambassador of the UAE to Egypt, and Captain Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group.
The agreement marks a significant advancement in the strategic partnership between AD Ports Group and RSPA. This collaboration will see an investment of $200 million over three years, aimed at developing a state-of-the-art facility within the strategic location of the Red Sea and will be the first internationally operated port serving the Upper Egypt region.
The total investment will cover superstructure, equipment, buildings, and utilities within the concession area to create advanced facilities and leading-edge infrastructure. The terminal, spanning approximately 810,000 square meters, will feature a 1,000-metre quay wall and will handle diverse cargo types, including dry bulk, liquid bulk, containerised cargo, and Ro-Ro. This project is expected to bring substantial economic impact, with cost savings and efficiency improvements to traders and businesses in the region. The terminal is on track to become operational by 2025.
Al Shamisi said:“We are delighted to have signed the definitive concession agreement to develop and operate a multi-purpose terminal in Egypt's Safaga Port. The confidence and trust placed by the Egyptian government and our partners is a testament to AD Ports Group's capabilities and experience in developing ports and terminals infrastructure. With this project, our Group will demonstrate its commitment to enhancing the efficiency of global supply chains, creating faster trade routes and providing diverse logistics solutions for our key strategic trading partners.”
“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. Through this agreement, we aim to spur economic development, create jobs, boost local industries, and attract further investments into the region. We look forward to working closely with our partners to make this vital project a success.”
Saif Al Mazrouei, CEO of ports cluster at AD Ports Group, said,“AD Ports Group's expertise in port infrastructure development and operations positions us uniquely to leverage those skills and knowledge to play a key role in the next stage in the evolution of Safaga Port. Moreover, 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 cooperation and opportunities in other sectors.”
This project is a significant step in the long-standing friendship and cooperation between the UAE and Egypt. The UAE stands as Egypt's second leading trade partner in the region, with Egypt ranking as the fifth leading trade partner of the UAE in non-oil trade with Arab countries.
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