AD Ports signs new deals to develop and operate ports in Egypt

Abu Dhabi-listed company will develop Ain Sokhna Port on Gulf of Suez as well as river port in Minya

Abu Dhabi Ports Group owns and operates 10 ports in the UAE. Reuters

Abu Dhabi Ports Group, which operates ports, industrial cities and free zones in the emirate, signed two new deals to develop and operate ports in Egypt, boosting the maritime sector in the Arab world's most populous country.

It signed a preliminary agreement with the Egyptian Group for Multipurpose Terminals, the commercial arm of the Egyptian Ministry of Transportation, to jointly oversee the development and operation of Ain Sokhna Port on the Gulf of Suez.

As part of the deal, the two entities will work together closely to conduct a feasibility study into the future development of Ain Sokhna and explore potential investment opportunities to boost its capacity, AD Ports said in a statement on Wednesday to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

AD Ports also signed an agreement with the Egyptian Group for Multipurpose Terminals and the River Transport Authority to collaborate on three projects – building and operating a river port in Minya, managing and operating warehouses in Damietta and equipping, managing and operating passenger lines in Greater Cairo.

“We see significant commercial and social potential for the development of Ain Sokhna Port and the river port in Minya,” said Saif Al Mazrouei, head of ports cluster at AD Ports Group.

“The co-operation will boost the already-strong capabilities that these facilities have in commercial and maritime shipping, as well as in the cruise sector.”

AD Ports Group, which made its debut on the ADX last month after raising Dh4 billion ($1.1bn) from its share sale, is looking to expand across the globe. Last year, the company signed partnership agreements with Aqaba Development Corporation in Jordan to develop tourism, logistics, transport and digital infrastructure in Aqaba.

It also signed a deal with the Egyptian Group for Multipurpose Terminals in November to develop and operate a multipurpose terminal in Safaga Port on the Red Sea, as well as an agreement in September with the General Company for Ports of Iraq to explore investment opportunities in the country.

“The Egyptian Multipurpose Terminals Group and AD Ports Group have a close ... relationship and this collaboration has resulted in these important agreements that will play a key role in supporting Egypt's maritime and river port ecosystem,” said Abdul Darwish, chairman of the Egyptian Group for Multipurpose Terminals.

As part of the new deal, AD Ports Group will manage the research study for Ain Sokhna Port over a period of six months, while the Egyptian Group for Multipurpose Terminals will support the project with the provision of financial, technical, environmental, commercial and operational data.

The deal will enable the port to target untapped market segments and establish new revenue streams, the statement said.

Established in 2006, AD Ports Group owns and operates 10 ports in the UAE including Khalifa, Zayed, Mussaffah, Fujairah Terminals, Community Ports, Kamsar and the Abu Dhabi Cruise Terminal, as well as a terminal in Guinea.

It also manages more than 550 square kilometres of industrial zones and an end-to-end logistics business, besides offering a range of maritime services.

Its 2021 profit more than doubled to Dh853 million as revenue grew 14 per cent year-on-year to Dh3.9bn amid higher trade activity globally, the company said this month.