On Wednesday, the AD Ports Group announced the signing of a concession agreement with the Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Seaport. This pivotal agreement, endorsed by the Government of Egypt, underscores the robust trade relations between the UAE and Egypt.
The signing ceremony took place at the Egyptian cabinet headquarters in Cairo, with Ahmed Al Mutawa, regional CEO of AD Ports Group, and Major General Osama Saleh, vice-chairman of the board of directors of RSPA, signing the agreement. The event was attended by Egypt’s Prime Minister, Dr. Mostafa Madbouly, Egypt’s Minister of Transport, Lieutenant-General Kamel El Wazir, UAE Ambassador to Egypt Mariam Al Kaabi, and Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group.
This agreement represents a significant stride in the strategic partnership between AD Ports Group and RSPA, involving a $200 million investment over three years. The initiative aims to establish a cutting-edge facility in the strategic Red Sea location, serving as the first internationally operated port for the Upper Egypt region.
The comprehensive investment will cover infrastructure components such as superstructure, equipment, buildings, and utilities within the concession area. The terminal, spanning approximately 810,000 square meters, will include a 1,000-meter quay wall and handle various cargo types, contributing to substantial economic impact and efficiency improvements in the region. The terminal is anticipated to be operational by 2025.
Al Shamisi expressed delight at signing the definitive concession agreement, emphasizing the confidence placed by the Egyptian government and partners in AD Ports Group’s capabilities. He highlighted the commitment to enhancing global supply chain efficiency, creating faster trade routes, and providing diverse logistics solutions for key strategic trading partners.
Saif Al Mazrouei, CEO of ports cluster at AD Ports Group, highlighted the unique position of AD Ports Group in leveraging expertise for the evolution of Safaga Port. The strategic location of Safaga on the Red Sea coast enables the enhancement of commercial offerings, revenue diversification, and contributions to Egypt’s broader economic objectives.
This project represents a significant milestone in the enduring friendship and cooperation between the UAE and Egypt, strengthening their trade ties and fostering economic development. The UAE stands as Egypt’s second leading trade partner in the region, emphasizing the importance of continued support for Egypt’s development plans through collaborative initiatives like this one.
