AD Ports Group (ADX: ADPORTS), a leading facilitator of global trade, logistics, and industry today initialled a 15-year concession agreement with the Red Sea Port Authority (RSPA), to operate and manage three cruise terminals at Safaga, Hurghada, and Sharm El Sheikh ports. The agreement also encompasses the renovation of the Sharm El Sheikh terminal, with the ultimate aim of enhancing the cruise tourism experience in Egypt. A definitive concession agreement is expected to be concluded in the first quarter of 2024, subject to regulatory approvals.
The concession agreement was initialled in the presence of His Excellency Lieutenant-General Eng. Kamel El Wazir, Egypt’s Minister of Transport, by Major General Mohamed Abdel Rahim, Chairman of the Board of Directors of the Red Sea Ports Authority and Ahmed Al Mutawa, Regional CEO, AD Ports Group, at the Egyptian Ministry of Transportation in New Capital City – Cairo.
The collaboration will see AD Ports Group investing USD 3 million over 15 years in the management and operation of the three cruise terminals to provide new services, improve access for cruise operators and add new itineraries through the Group’s cruise terminal network in the red sea. This will in turn strengthen AD Ports Group’s cruise business in the Red Sea region, supporting volumes of cruise passengers and elevating passenger and cruise experiences.
Ahmed Al Mutawa, Regional CEO, AD Ports Group, said: "This agreement is a testament to our commitment to fostering tourism in the Red Sea region, as well as strengthening the existing ties between the United Arab Emirates and Egypt. With an investment of USD 3 million, AD Ports Group is poised to boost cruise tourism in the Red Sea, bringing world-class services and facilities to these ports, whilst supporting economic growth for Egypt."
This latest partnership comes in the wake of the signing of a definitive concession agreement between AD Ports Group and RSPA for the development and operation of a multi-purpose terminal at Safaga Sea Port. This collaboration will see an investment of US$ 200 million over 3 years, aimed at developing a state-of-the-art facility within the strategic location of the Red Sea and will be the first internationally operated port serving the Upper Egypt region.
In 2023, AD Ports Group inaugurated the Aqaba Cruise Terminal, the first-of-its-kind facility in Jordan. This new addition to the Group’s red sea portfolio forms part of its cruise expansion strategy aimed at elevating passengers’ cruise experience, globally.
Source: AD Ports Group
