PORT SAFAGA
The Government of Egypt has initiated an agreement with the UAE’s AD Ports Group aimed at the development of three cruise terminals situated in SAFAGA, HURGHADA, and SHARAM EL SHEIKH ports in Egypt. Additionally, the agreement encompasses the refurbishment of the Sharm El Sheikh terminal.
Per the contract terms, the AD Group secures a 15-year concession from the Red Sea Port Authority to oversee operations in these three ports, once the construction is complete. This agreement has been sanctioned by the Egyptian Parliament and is expected to be finalized within the first quarter of 2024.
As outlined in the agreement, AD Ports commits to investing $200 million over a 3-year period to establish cutting-edge facilities in these ports. Further, an additional $3 million will be allocated over the 15-year term for the management and operation of these terminals as well as enhancing accessibility for cruise operators in the Red Sea region.
This significant partnership arrives amidst concerns and apprehensions regarding the Red Sea and shipping traffic dropping around it. Recent attacks by Houthi Rebels targeting passing ships have prompted major shipping operators such as Maersk and Hapag Lloyd to announce their avoidance of the Red Sea for the forseeable future.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.
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