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AD Ports inks USD 3 mn agreement to develop and operate three Egyptian cruise terminals: Abu Dhabi Ports Group (AD Ports) is set to develop and operate three Red Sea cruise ship terminals under a 15-year concession agreement signed with Egypt’s Red Sea Ports Authority (RSPA) on 5 January, the port operator said in a press release.
The details: The agreement will see AD Ports invest USD 3 mn over 15 years to construct, manage and operate cruise ship terminals in Hurghada, Safaga, and Sharm El Sheikh. Under the collaboration, the company will also renovate the Sharm El Sheikh terminal. The partnership aims to “boost cruise tourism in the Red Sea, bringing world-class services and facilities to these ports, whilst supporting economic growth for Egypt,” AD Ports regional CEO Ahmed Al Mutawa said. AD Ports expects to close the agreement in 1Q 2024 if the relevant regulatory approvals are received.
AD Ports is no stranger to Egypt: AD Ports signed a USD 200 mn, 30-year concession agreement with the RSPA last month to develop and operate Safaga 2 terminal, a multipurpose container terminal at Safaga Port. It is also, since 2022, the majority owner (pdf) of Transmar International Shipping Company and Transcargo International, previously Egypt’s largest independent cargo line.
And there’s more in the pipeline: More maritime transport contracts between AD Ports and Egypt will be revealed within the next month, Al Mal reports, citing Egyptian Transport Minister Kamel El Wazir.
BACKGROUND- The Red Sea is witnessing some turbulent tides: The agreement comes against the backdrop of shipping disruptions in the Red Sea, with Yemen’s Houthi rebels repeatedly attacking international shipping vessels passing through the region. On account of the attacks, Danish shipping giant Maersk, the world’s second-largest shipping line, said on Friday that it would suspend shipping through the Red Sea and Suez Canal for the foreseeable future.
