Hutchison Ports signed a long-term agreement last week with Egyptian Navy on the development and operation of a new container terminal in Abu Qir, Egypt.
The total investment in the new terminal is estimated to reach US$730 million.
An online signing ceremony on August 27 was jointly hosted by His Excellency Commander in Chief Vice Admiral Ahmed Khaled Saied, Egyptian Navy and Mr. Eric Ip, Group Managing Director of Hutchison Ports together with the management team joining from Hong Kong and the United Kingdom.
The new terminal will be located inside the Abu Qir Naval Base, naturally being sheltered by the Abu Qir peninsula.
Speaking at the ceremony, His Excellency Ahmed Khaled Saied said, “Today is a special day for us. The development of Abu Qir signifies the continuation of our successful partnership with Hutchison Ports, the world’s renowned port investor and operator. We are seeing an increase in export cargoes, there is a need for a world-class container terminal to facilitate growing trade. This also echoes with the President EI Sisi’ Egypt Vision 2030 of regional leadership and sustainable development.”
Commenting on the significance of the Abu Qir project, Mr. Eric Ip said, “We have been investing in Egypt since 2005, and it has always been an important market to us justified by the country’s growing population and economy that are fueling container trade. We are honored with the trust from the Egyptian government and are excited with this project, which is designed to have a draft of 18 metres and capable of handling mega vessels. The pandemic has created many challenges globally, I strongly believe that as a company we are resilient, and I remain positive about the strength of a rebound in global demand.”
The US$730 million project will be funded primarily by the joint investment of the two partners in phases, with handling capacity of 2.0 million TEU (twenty-foot equivalent unit) upon completion.