business : UAE’s AD Ports Group to invest $4.7m in Egyptian cruise terminals

Thursday 13 June 2024 10:53 PM

Nafeza 2 world - Egypt signed a series of agreements with UAE’s AD Ports Group on Wednesday to develop and manage cruise terminals in Safaga, Hurghada, and Sharm El Sheikh, marking a significant step in expanding Egypt’s cruise tourism sector.

AD Ports Group plans to invest $4.7m over the next 15 years in the three terminals, expected to be operational by 2025. The investment will cover the management and operation of the terminals, improve services, and accessibility for cruise operators, and add new itineraries within the Red Sea cruise terminal network.

The definitive agreement was signed in Cairo in the presence of Egypt’s Prime Minister, Mostafa Madbouly, and the Minister of Transport, Kamel El Wazir, along with other dignitaries from both countries.

In a separate development, AD Ports Group also initiated two 30-year concession agreements with the General Authority of the Suez Canal Economic Zone (SCZONE) for the development and management of a Ro-Ro terminal and a cruise terminal at Sokhna Port.

Minister El Wazir highlighted the government’s ongoing efforts to promote yacht tourism in Egypt, emphasizing that the agreements represent partnerships and not the sale of port assets. He also stressed that nearly all the workforce at these terminals would be Egyptian.

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, expressed satisfaction with the expansion of the group’s presence in Egypt, stating, “Today’s signings reaffirm our commitment to bolstering the cruise tourism sector in the Red Sea, through providing world-class facilities and services to passengers, while further strengthening bilateral ties between the UAE and Egypt.”

The agreements follow a previous deal signed in December 2023 for the development of a multi-purpose terminal at Safaga Port, with an investment of $200m over three years.

During the signing ceremony, the Minister of Transport outlined ambitious targets for the cruise tourism sector, aiming to increase capacity to accommodate 7.5 million cruise passengers annually across all terminals. He also highlighted the substantial projected revenue from both direct ship fees and indirect spending from transit passengers using Egyptian airports.

The expansion of Egypt’s cruise terminals is part of a broader development plan for the country’s transport sector, encompassing various modes of transportation and infrastructure projects.

Ahmed Al Mutawa, Regional CEO of AD Ports Group, emphasized the company’s commitment to providing top-tier facilities and services, aligning with the strategic goals of both the UAE and Egypt. He also highlighted the strategic location of Sokhna Port and the company’s eagerness to collaborate with SCZONE to meet the region’s needs for cruise and Ro-Ro services.

 

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