Port developer and operator Hutchison Ports has signed a long-term agreement with the Egyptian Navy on the development and operation of a new container terminal in Abu Qir, Egypt.
An online signing ceremony took place on 27 August 2020.
“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 President EI Sisi’ Egypt Vision 2030 of regional leadership and sustainable development,” Vice Admiral Ahmed Khaled Saied , Commander in Chief, Egyptian Navy, commented on the occasion.
The new terminal will be located inside the Abu Qir Naval Base, naturally being sheltered by the Abu Qir peninsula. The greenfield project will be connected to a new two-way highway with 3 traffic lanes on each side and residential bypass, linking it to Alexandria within 20 kilometers, as well as to the national road network to the capital city of Cairo and other major cities across the country.
Commenting on the significance of the Abu Qir project, Eric Ip , Group Managing Director of Hutchison Ports, 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 honoured 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.”
As informed, the total investment in the new terminal is estimated to reach $730 million. The project will be funded primarily by the joint investment of the two partners in phases, with handling capacity of 2 million TEU upon completion. It will have a total quay length of 1,200 metres and a 60-hectare terminal yard, an additional 100 hectares of land exclusively reserved for yard expansion.
The new terminal has a concession period of 38 years and the first phase is expected to commence operations in 2022.