AD Ports signs pact to develop Safaga port in Egypt

30-year concession will witness Dh734m investments over 2024 and 2025

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A Staff Reporter

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Safaga Port will be the first internationally operated port in the Upper Egypt region, bringing significant cost savings to traders, industries and businesses located in this region. - Courtesy: Abu Dhabi Media Office
Safaga Port will be the first internationally operated port in the Upper Egypt region, bringing significant cost savings to traders, industries and businesses located in this region. - Courtesy: Abu Dhabi Media Office

Published: Sat 18 Mar 2023, 6:39 PM

AD Ports Group has signed a concession agreement to develop and operate a multi-purpose port in Safaga in Egypt, in addition to signing two agreements for the development of two cement terminals in Al Arish Port and West Port Said Port, and four Head of Terms (HoT) concerning ports located in Egypt’s Red Sea region and the Mediterranean Sea, enabling a major expansion of the Group’s activities into Egypt.

These agreements allow for expanded access to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh and Al Arish.


The agreements were signed in Cairo in the presence of Lieutenant-General Kamel al-Wazir, Minister of Transport of Egypt; Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group; Major General Osama Saleh, Vice- Chairman of the Board of Directors of the Red Sea Port Authority; Walid Jamal Eldin, Chairman of the General Authority for the Suez Canal Economic Zone; as well as Saif Al Mazroui, CEO of Ports Cluster at AD Ports Group, and other senior officials.

Safaga Port Concession Agreement


AD Ports Group and the Red Sea Ports Authority signed a 30-year concession agreement that allows the group to develop and operate a multi-purpose terminal at Safaga Port, a strategic location on the Red Sea coast of Egypt.

Safaga Port will be the first internationally operated port in the Upper Egypt region, bringing significant cost savings to traders, industries and businesses located in this region.

The terminal will be developed over an approximate area of 810,000 square metres and is set to be operational in Q2 2025. It will boast a quay wall of up to 1,000 metres and it will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.

AD Ports Group will invest a total of up to Dh734 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ network inside the concession area. The majority of this CapEx will be spent in 2024 and 2025. There will be no currency exposure associated with the operations of the port as all revenues will be dollarised.

Two cement terminals

The agreements for the development of two cement terminals in Al Arish Port and West Port Said Port were signed between AD Ports Group and the General Authority for the Suez Canal Economic Zone requiring a combined investment of Dh121 million in both terminals. As per the 15-year agreements, AD Ports Group will construct silos with a storage capacity of up to 60,000 tonnes in Al Arish Port and 30,000 tonnes in West Port Said; each terminal will be able to handle 1-1.5 million tonnes annually. Both terminals which will be operational in Q4 2023, are expected to contribute to doubling Egypt’s cement exports to global markets.

Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “AD Ports Group’s significant concession agreement with the Red Sea Port Authority for the development of Safaga Port has the potential to play a major role in the global supply chain, evidencing, once again, that our key strategic partnerships in Egypt drive the advancement of the Group’s portfolio of value-added investments. In line with the vision of our wise leadership, AD Ports Group is committed to not only enabling new trade connections, but also to providing strategic infrastructure solutions to boost tourism to aid the diversification of both our nation’s economies.

“As we look to the future, AD Ports Group is proud to continue developing the infrastructure of Egyptian ports and terminals. The significant opportunities we can leverage through our agreements with the Red Sea Ports Authority and the General Authority of Suez Canal Economic Zone will increasingly enhance our commercial offering across the region.”

Saif Al Mazroui, Chief Executive Officer of the Ports Cluster at AD Ports Group, said: “As part of AD Ports Group, our Ports Cluster is currently involved in a wide range of projects throughout Egypt, and in particular in Safaga Port. Our expertise as facilitators of global trade, as well as developers and operators of strategic port infrastructure projects, combined with Safaga Port’s strategic location on the Red Sea, means that we are uniquely positioned to deliver activities from managing port and logistics operations to providing tourists with access to Egypt’s fascinating history and culture, This will lend support to and promote the growth and diversification of the Egyptian economy.”

These agreements build upon the strong historic and economic ties between the UAE and Egypt which recently celebrated 50 years of friendship and co-operation.

The UAE is Egypt’s second leading trade partner in the region and the number one country in foreign direct investments, accounting for 29 per cent of foreign investments in Egypt, while Egypt is the fifth leading trade partner of the UAE in terms of non-oil trade, accounting for seven percent of the total Emirati non-oil trade with Arab countries.


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