Red Sea Port Authority, AD ports sign $3M agreement to operate 3 cruise terminals

CAIRO – 8 January 2024: AD Ports Group and the Red Sea Port Authority (RSPA) partnered to sign a 15-year concession agreement will grant AD Ports Group the responsibility of managing the Safaga, Hurghada, and Sharm El Sheikh ports' cruise terminals. Over the course of the concession period, AD Ports Group will invest $3 million to manage, operate and develop the three key ports.

The primary objective of this agreement is to introduce new and improved services, enhance accessibility for cruise operators, and expand the range of itineraries available through AD Ports Group's extensive cruise terminal network in the Red Sea region.

The partnership also encompasses a plan to renovate the Sharm El Sheikh terminal to boost cruise tourism in Egypt. This agreement is anticipated to be finalized in the first quarter of 2024, subject to the necessary regulatory approvals.

Egypt's Minister of Transport Kamel al Wazir emphasized the partnership’s role in attracting a higher number of international ships to Egyptian ports, augmenting the ports' operational capacity, and growing transit trade.

The collaboration between AD Ports Group and the RSPA is slated to establish a cruise line that will connect the three aforementioned ports with Zayed Port in the United Arab Emirates. Future plans also include extending connectivity to ports in the Arabian Gulf, the Port of Aqaba, as well as European and Asian ports.

In December 2023, RSPA concluded a contract with AD Ports to construct and develop a multi-purpose terminal at Safaga Sea Port, with investments amounting to $200 million spread over a span of three years.