AD Ports, Suez Canal Economic Zone partner to develop projects in Egypt

UAE’s AD Ports Group has partnered with Egypt’s Suez Canal Economic Zone (SCZone) to develop several projects in ports within the economic zone as the ports operator is bolstering its operations in the North African country.

AD Ports will develop projects in the ports of East Port Said, West Port Said and Al Areesh, SCZone said in a statement. Earlier in March, President Abdel Fattah El-Sisi met Mohamed Juma Al Shamisi, AD Ports’ managing director and group CEO, in Cairo to discuss the ongoing cooperation and development of the logistics and maritime sectors in the country.

Al Shamisi said the meeting allowed the group to present its plans for strategic expansion in Egypt where the firm sees vast investment opportunities backed by ambitious economic development plans.

AD Ports’ strategic expansion

Meanwhile, the partnership between AD Ports and SCZone comes a week after the ports operator signed a 30-year concession agreement worth $200m (EGP6.2bn) to develop, manage and operate the Egyptian multi-purpose terminal in the Red Sea port of Safaga.

Read: AD Ports Group inks 30-year deal to develop, operate port in Egypt

Abu Dhabi-based firm said it will invest in superstructure and equipment, buildings as well as real estate facilities and utilities’ network inside the concession area. Much of the capital expenditures will be invested in the next two years.

AD Ports also signed two additional 15-year agreements, an MoU and three head of terms (HoT) concerning ports located in the country’s Red Sea region and the Mediterranean Sea. The deals 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.

Saif Al Mazrouei, CEO of our Ports Cluster, believes that our expertise as facilitators of global trade, combined with Safaga Port’s strategic location on the Red Sea, will lend support to and promote the growth and diversification of the Egyptian economy. https://t.co/4PZjTZ0v3K pic.twitter.com/mBTMyH9C5O

— AD Ports Group (@ADPortsGroup) March 21, 2023

The 15-year agreements with the General Authority for the Suez Canal Economic Zone pave way for AD Ports to build two cement terminals in Al Arish Port and West Port Said Port worth a combined $33m (at current prevailing market rates).

AD Ports said the terminals will be operational in the last quarter of 2023 and are expected to contribute to doubling Egypt’s cement exports to global markets.

From the UAE to the world

Over the past half-decade, the UAE has risen into the upper echelons of the global maritime industry as the Gulf state has evolved into a key logistics hub.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

The company also operates a facility in Guinea and plans to develop extensive trade corridors connecting the UAE with the Middle East, the subcontinent, Africa and other international markets.

Earlier in March, AD Ports signed an agreement with Congo to develop, operate and manage a new multipurpose terminal in Pointe-Noire.

The group also acquired Spanish logistics firm Noatum for $680m in November 2022, a deal that is expected to give the ports major exposure to maritime and logistics activities in the Mediterranean as well as port facilities in the European nation.

AD Ports has built new strategic partnerships to develop connectivity between the GCC region, the Indian Ocean, the Red Sea, East Africa and Central Asia – vital trading regions that will help drive economic growth in the region and internationally. Major acquisitions played a key role in the company’s growth story in 2022.

Read: AD Ports Group reports strong growth, global expansion in first year as publicly listed entity

Its full-year revenues rose 41 per cent to $1.5bn in 2022, driven by the solid performance of its maritime and port facilities along with new acquisitions and partnerships.

AD Ports debuted on the Abu Dhabi bourse last year to raise $1.1bn through an initial public offering.