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Sunday, 19 March 2023

ADP lands 30-year contract to develop and operate Safaga Port terminal

Abu Dhabi Ports just established itself as a major player in Egypt’s port infrastructure: Abu Dhabi Ports (ADP) will develop and operate a container terminal at Safaga Port under a USD 200 mn, 30-year concession agreement signed with the government on Saturday, according to statements from the Emirati port developer and the Madbouly cabinet.

The details: The Safaga 2 terminal is expected to kick off operations in 2Q 2025, handling some 5 mn tons of dry bulk, 1 mn tons of liquid bulk, 450k TEUs of containerized cargo and 50k car-equivalent units (CEUs) of roll-on, roll-off cargo. The port currently has a maximum capacity of 6.37 mn tons per year. ADP will spend USD 200 mn on “superstructure and equipment, buildings, and other real estate facilities and utilities’ network inside the concession area,” most of which will be spent in 2024 and 2025. The Emirati company inked the agreement with the Red Sea Ports Authority, making the Safaga Port the “first internationally-operated port in the Upper Egypt region,” it said.

A few years in the making: ADP first expressed its interest in Safaga port in 2021, and signed a term sheet with the government last year. The terminal was one of nine proposed PPP infrastructure projects given preliminary approval by the cabinet last year.

Raising cement exports: ADP also signed two 15-year agreements with the Suez Canal Authority to develop cement terminals in Al Arish Port and West Port Said Port, which will collectively require USD 33 mn of investment. The two terminals will feature silos with a combined storage capacity of 90k tons, and are expected to be operational by 4Q 2023.

There’s more: ADP inked letters of intent for the development, management, and operation of new cruise terminals at Sharm El Sheikh and Hurghada, and RoRo, cruise and multipurpose terminals at Sokhna port, the statement said, without providing details. The company also signed an MoU for potentially working on the East Port Said terminal, a logistics zone, and an economic zone.

The news received attention internationally: Reuters.

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