Screenshot from a video by the Sinai Foundation for Human Rights
Demolition works in Al-Arish Port district amid residents’ objections. July 15, 2025.

Egypt to spend $51M on second phase of Arish Port, source says

Mohamed Ismail
Published Monday, July 21, 2025 - 16:08

The General Authority for the Suez Canal Economic Zone plans to begin the second phase of construction at Arish Port in the coming days, despite ongoing protests from local residents facing eviction. The expansion will cost over 2.5 billion Egyptian pounds (approximately $51 million), a board member of the authority confirmed to Al Manassa.

This new phase includes three additional berths spanning two kilometers and extensive storage yards covering 425,000 square meters, aiming to transform Arish into a key international port linked to Egypt’s rail network.

The controversial demolitions, which are paving the way for this expansion, resumed on July 17. Seven houses were torn down in the Al-Risa neighborhood, where 180 properties are slated for removal in the fourth and fifth phases of the Al-Arish port redevelopment plan.

Chanting “No to displacement” and “This land is Egyptian, not Emirati,” demonstrators gathered in front of Central Security Forces and demolition equipment to block further action. Some even chanted, “We won’t leave our homes, even if it costs us our lives.”

Despite such defiance, authorities remain committed to the project. “The marine berths will be built in coordination with relevant authorities, and work will start within days,” said the unnamed official, adding that 75% of the preparatory work on backyards has been completed by the construction firm.

Demolitions had been paused in July 2023 following widespread backlash. At that time, President Abdel Fattah el-Sisi himself directed Transport Minister Kamel Al-Wazir to meet with community representatives, assuring them that no removals would proceed without their consent.

Despite that explicit pledge, demolitions resumed this month. North Sinai officials are presenting compensation offers, including licensed plots in Al-Risa for 200,000 pounds (approximately $4,000), temporary housing in Al-Sabeel, or furnished apartments for 350,000 pounds (approximately $7,100). The government is also providing free moving trucks and building materials.

This significant expansion of Al-Arish port has drawn investment from Abu Dhabi Ports Group (AD Ports Group). In a 2023 agreement, the UAE-based trade enabler committed to developing and operating a new cement terminal within Al-Arish port, a deal valued at 1 billion pounds (approximately $20.3 million), according to the group’s statement at the time.

The authority anticipates completing the three new berths by the end of next year. These upgrades are part of a broader plan to deepen the port to 14 meters and extend its quay from 242 meters to 1.5 km.