AD Ports Group bets on Red Sea cruise sector with concession for three terminals in Egypt

AD Ports Group, the UAE-based port operations and logistics company, has signed a concession agreement with the Red Sea Ports Authority (RSPA) to develop, operate and manage three cruise terminals in Safaga, Hurghada, and Sharm El Sheikh, advancing an MoU signed earlier this year.

As part of the agreement, AD Ports Group will invest US$4.7 million over the next 15 years to improve management and operations at the three cruise terminals, which are expected to be operational by 2025.

The agreement comes amid an ongoing security crisis in the Red Sea, which has forced all major cruise lines to avoid the region. 

Houthi rebels in Yemen have been attacking international shipping in the Bab Al Mandeb Strait (the gateway between the Red Sea and Indian Ocean), using drones and anti-ship missiles in retaliation for Israel’s invasion of the Gaza Strip.

More than 150 ships have been struck since November 2023, but no cruise ships have been targeted. Despite this, all major cruise lines have diverted ships around South Africa when transitioning between Asia and Europe, rather than using the Suez Canal.

Despite the ongoing security crisis, AD Ports Group is betting on the long-term potential of the cruise sector in the area.

AD Ports Group will develop the terminals to provide new services and improve access for cruise lines, incentivising cruise lines to develop new itineraries through the group’s cruise terminal network in the Red Sea. 

The company already operates the Aqaba Cruise Terminal in Jordan, the gateway to the Lost City of Petra.

AD Ports Group has also signed a 30-year concession agreement with the General Authority of the Suez Canal Economic Zone (SCZONE) for the development, management, and operations of a cruise terminal at Sokhna Port.

“We’re happy to build upon our initial agreement signed earlier in January. 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,” said Captain Mohammed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.

“Sokhna is strategically positioned on the western shore of the Gulf of Suez. We are keen on collaborating with our partners at the General Authority of the Suez Canal Economic Zone to fulfil the region’s requirement for prime Cruise and Ro-Ro services,” he added.