AD Ports awards Egypt’s Hassan Allam contract for Safaga Terminal on Red Sea coast

Terminal is part of company's nearly $349m investment in Egypt over past three years

AD Ports is expanding its reach and investing in projects globally. AP

AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, has awarded a contract to Egypt’s Hassan Allam Construction to build the infrastructure for Noatum Ports-Safaga Terminal on Egypt’s Red Sea coast.

It will be the first internationally operated port terminal in the Upper Egypt region.

The terminal, spanning 810,000 square metres, will have be able to handle 450,000 20-foot equivalent units (TEUs) of container cargo, 5 million tonnes of dry bulk and general cargo, and 1 million tonnes of liquid bulk. It will also feature roll-on, roll-off facilities with a capacity for 50,000 car equivalent units.

The project will include the construction of administration buildings, workshops, warehouses and support infrastructure such as roads, utilities and security systems, AD Ports said in a statement on Wednesday.

Noatum Ports-Safaga Terminal will be a “key addition” to Egypt’s maritime and ports infrastructure on the Red Sea, according to Hassan Allam, chief executive of Hassan Allam Holding.

Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports Group, said the project will drive economic growth in the region.

The project will feature a 48,000-square-metre concrete apron, an 80,354-square-metre container terminal with supporting infrastructure, and nearly 66,360 square metres for general cargo and break-bulk operations, AD Ports said.

The terminal is part of AD Ports' nearly $349 million investment in Egypt over the past three years, which includes acquisitions of maritime companies and new terminal developments.

Some of these include purchases of maritime companies Transmar, TCI and Safina, the planned construction of a roll-on, roll-off terminal in Ain Sokhna, and long-term concessions to develop and operate cruise terminals in Safaga, Hurghada, Ain Sokhna and Sharm El Sheikh.

The UAE is Egypt’s second-largest trading partner and its biggest international investor, according to the Egyptian Commercial Service, with $9.6 billion invested in the country last year. Trade volume reached Dh25.2 billion ($6.9 billion) in 2023, according to the UAE Ministry of Economy.

In February, the countries signed an agreement that will see the UAE invest $35 billion to develop the Ras El Hekma coastal region, about 350km north-west of Cairo.