AD Ports Group has signed an agreement with the Egyptian Group for Multipurpose Terminals, the commercial arm of the Egyptian Ministry of Transportation, to develop and operate a multipurpose terminal in Safaga Port on the Red Sea.
Under the agreement, AD Ports Group will explore investment opportunities and conduct feasibility and local market studies related to developing and operating the port, with both parties benefitting from exchanging expertise and best practice, the UAE company said in a statement on Tuesday.
“The strategic location of Safaga Port on the Red Sea holds great potential for a significant role within the global supply chain,” Saif Al Mazrouei, head of the ports cluster at AD Ports Group, said.
“The co-operation will prove beneficial for both sides, as it combines the unique characteristics of Safaga Port with the long-standing expertise offered by AD Ports Group in managing and operating maritime terminals, along with the group’s extensive capabilities in delivering end-to-end services across the entire supply chain.”
The agreement aims to support the growth of the Middle East’s industrial and logistics sectors and help to open new markets for Egyptian exports through direct maritime routes in the Arabian Gulf, East Asia and Africa regions, the statement said.
It will also boost its competitive advantage in industrial products and facilitate commercial activities within Upper Egypt and the Golden Triangle. This Egyptian economic zone, between Qena, Safaga and Al Qusair, is considered one of the areas richest in mining sources, accounting for 75 per cent of the country’s mining minerals.
Abu Dhabi Ports Group owns and manages 11 ports and terminals in the UAE and Guinea, including Khalifa Port, Zayed Port, Musaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and Abu Dhabi Cruise Terminal. It operates more than 550 square kilometres of industrial zones within Khalifa Industrial Zone Abu Dhabi and ZonesCorp, the largest integrated trade, logistics and industrial business grouping in the Middle East.
“The investment environment in Egypt is rich with opportunities, and it is crucial that we advance and enhance seaports in Egypt so that they become centres for further commercial development and competitive with other international ports. In turn, this will greatly benefit our nation’s national economy,” Rear Admiral Abdul Qadir Darwish, chairman of the Egyptian Group for Multipurpose Terminals, said.
The agreement with the Abu Dhabi company will be a “starting point” for further collaborations that will provide a wide range of services beneficial to each country’s trade and logistics sectors, he said.
Abu Dhabi Ports’ owner, ADQ, revealed plans to list it on the Abu Dhabi Securities Exchange later this year, subject to market conditions and regulatory approvals.
ADQ is one of the region’s largest holding companies, operating industrial cities and free zones in Abu Dhabi, and reported a 21 per cent increase in revenue during the first six months of the year on the back of organic growth, diversification into new businesses, new leases and partnerships.
The company earned revenue of Dh1.8 billion ($490.1 million), compared with Dh1.52bn for the period ending on June 30, 2020.
In September, Abu Dhabi Ports signed an agreement with the General Company for Ports of Iraq to explore investment opportunities and strengthen co-operation in the transport and maritime sectors. The UAE company will also develop national infrastructure in Iraq, such as roads and rail networks, which will connect the country’s Al Faw Port with markets in Jordan and Turkey.
AD Ports also signed an agreement with the Aqaba Development Corporation in September to establish its first cruise terminal outside the UAE, at the Marsa Zayed project in Aqaba, Jordan.