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Safaga port, July 27, 2026.

Transport ministry allocates EGP2.5 B for Safaga port upgrade

Mohamed Ismail
Published Tuesday, August 25, 2026 - 17:38

Egypt’s Ministry of Transport has allocated 2.5 billion Egyptian pounds to upgrade infrastructure and logistics across Red Sea ports following a 40% surge in operational activity at Safaga port during the first half of this year.

A board member at the Red Sea Ports Authority, speaking on condition of anonymity, told Al Manassa that the lion’s share of the new funding will go toward Safaga port. Plans include constructing the first phase of a 100-feddan logistics zone behind the port, alongside utility infrastructure required for immediate operation.

The investment aims to boost cargo handling capacity and capitalize on recent growth in transit trade. Shippers are increasingly turning to alternative land-sea bypasses as security risks and regional military tensions disrupt traditional navigation through the Bab Al-Mandeb and Hormuz straits.

Following utility installation, the authority will offer the zone to a private-sector operator for management and operations to elevate service efficiency and maximize commercial capacity.

The project also encompasses new internal warehouses and logistics facilities at Safaga to alleviate truck congestion during peak fruit and vegetable export seasons to Gulf markets.

Under the transit route, imported goods arrive at Safaga and move by sea to Saudi Arabia’s Duba port before traveling overland across Saudi Arabia and into neighboring Gulf states.

A document reviewed by Al Manassa shows maritime freight rates for inbound and outbound general cargo between Duba and Safaga stood at approximately $525 per truck between July and late September 2025.

Safaga port accounted for roughly 35.8% of the 2,430 total vessel arrivals across Red Sea ports last year. During that period, the facility handled nearly 2.226 million metric tons of general cargo, 3.584 million tons of dry bulk, and 699.33 thousand tons of transit cargo.

Established in 1978, the Red Sea Ports Authority oversees the ports of Suez (Port Tewfik), Safaga, and Nuweiba, in addition to the Zeitiyat petroleum port and the ports of Hurghada and Sharm El Sheikh.