AD Ports signs 50-year agreement to develop Kezad East Port Said Zone

AD Ports to set up industrial and logistics park in East Port Said: Abu Dhabi wealth fund ADQ-owned AD Ports Group has inked a 50-year renewable usufruct agreement with the Suez Canal Economic Zone (SCZone) to develop and operate an industrial and logistics zone spanning 20 sq km in East Port Said, according to a cabinet statement and another from the logistics player. While the total cost of the project is yet to be disclosed, AD Ports has earmarked USD 120 mn for the first phase’s technical and market studies and infrastructure development.

The details: AD Ports will develop, construct, finance, operate, and manage the zone in phases. The first phase will span 2.8 sq km and include a 1.5 km quay that could eventually host a multipurpose cargo terminal. Construction on the phase will kick off by the end of the year and should be completed within three years. Neither statement provided any details on the subsequent phases.

More development with Hassan Allam Holding: “The development of phase 1 will be anchored by key potential clients and partners, including one of the region’s foremost construction and development groups, Hassan Allam Holding,” the AD Ports statement read. AD Ports and Hassan Allam Holding also inked an MoU to “develop and invest in the industrial zone and explore other projects.”

AD Ports loves Egypt: As of last December, AD Ports had invested an estimated USD 349 mn in Egypt over the past three years. The group signed a USD 200 mn, 30-year concession to develop the Safaga II terminal and landed a 15-year contract to develop and operate three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh. It also signed an MoU to develop a green methanol export facility in Egypt.