INVESTMENT WATCH- Hutchison Ports has signed a USD 730 mn agreement with the Egyptian Navy to build and operate a container terminal in Abu Qir naval base in Alexandria, according to a Hutchison statement. The terminal will be financed primarily by a joint venture between Hong Kong-based Hutchison and the Egyptian Navy; it will be capable of handling mega vessels and have a maximum capacity of 2 mn twenty-foot equivalent units (TEU) with a 60 hectare terminal yard once the project is complete. Connection through a new two-way highway that will link the terminal to Alexandria and Cairo is also expected upon completion of the project.

Construction on the first phase of the terminal will begin in 2022 and a long term concession period of 38 years has been set for the project. The Navy and Hutchison had first signed an MoU on the terminal last year which at the time had suggested that Hutchison would train more than 1.5k Egyptian engineers and workers to run the port and that it would intake some 1 mn containers each year after the project is completed.

Advisors: Eldib Advocates acted as legal advisors for the Egyptian Navy and Baker McKenzie provided legal advice for Hutchison Ports.