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Transport Ministry plans international tender for Red Sea logistics zone

Mohamed Ismail
Published Tuesday, February 10, 2026 - 11:15

The Red Sea Ports Authority, affiliated with the Ministry of Transport, plans to issue an international tender in the first half of 2026 to develop an integrated logistics zone near Safaga Port, a member of the authority’s board told Al Manassa.

The project will cover about 100 feddans and involve investments of up to 3 billion Egyptian pounds (about $64 million). It aims to transform Safaga into a larger cargo transit hub by establishing a logistics zone functioning as a “dry port,” linked to Egypt’s high-speed rail network to facilitate the movement of goods between ports.

The board member, who requested anonymity, said the authority initially considered implementing the project itself, but decided instead to offer it to international and local consortia to handle construction, management, and operations, in a bid to maximize cargo volumes and operational efficiency.

Under the plan, the project will be developed through a 30-year usufruct agreement, similar to arrangements used in other logistics and dry port projects such as those in 6th of October City and 10th of Ramadan City, the source said.

Implementation of the project’s infrastructure and superstructure is expected to take about one year after the winning bidder completes technical and environmental studies. The authority will coordinate with the Transport Ministry to evaluate bids and select the preferred offer over a period of six to eight months, ahead of the start of construction in 2026.

Established in 1978, the Red Sea Ports Authority, oversees several commercial and touristic maritime sites and ports, including Suez (Port Tawfiq), Safaga, Nuweiba, the Zeitiyat petroleum dock, Hurghada, and Sharm El-Sheikh, according to the Ministry of Transport website.

The logistics zone plan comes as the authority prepares to hand over a multipurpose terminal in Safaga to AD Ports Group in the coming period, after the two sides signed a 30-year concession agreement in 2023. Under the deal, the Emirati group will develop a multipurpose terminal at Safaga Port under the name “Noatum Ports, Safaga Terminal.”

The group announced late last week that it had signed a $115 million financing agreement to implement the terminal’s superstructure, including a 1,100-meter berth with a depth of 17 meters, and an adjacent yard spanning 810,000 square meters.

The group expanded its investment portfolio in May, signing a renewable 50-year usufruct agreement to develop and operate “KEZAD East Port Said,” an industrial and logistics area spanning 20 square kilometers at the entrance to the Suez Canal on the Mediterranean coast.

In November, ADP bought its first stake of 19.3% in Alexandria Container and Cargo Handling Company (ALCN). In December, it said it was seeking to acquire a further 32% of the company’s shares, which would give it a controlling stake.

Egypt has 55 seaports in total, including 18 commercial ports and 37 specialized ports. The Transport Ministry owns nine of them, including Alexandria, Dekheila, Damietta, Port Tawfiq, Suez, Nuweiba, Sharm El-Sheikh, Hurghada, and Safaga.