The Safaga Port development tender estimated to be worth USD 1.2 billion is expected to be launched by the first half of 2013, a senior official told Zawya.
"Upon the completion of the technical studies being undertaken by the Port of Hamburg, a global tender will be announced for the development of Port Safaga on Egypt's Red Sea coast," said Atter Hannoura, the director of the central unit for public private partnership (PPP) at the Egyptian ministry of finance.
Safaga Port is located in the Red Sea governorate 53km, south of Hurghada, with a 16m depth and a capacity for handling cargo vessels up to 60,000 tons and has a current annual maximum capacity of 6.37 million tons.
"Investment in the project is likely to exceed USD 1.2 billion, as the government sees the important role it can play in developing the South Valley region and surrounding desert hinterlands, via supporting different industries and promoting trade and creating employment opportunities." said Hannoura.
According to Hannoura, the project is intended to develop the port into a major industrial harbor, comprising of 7 to 8 docks, running different activities including raw and liquefied phosphate exportations, signaling an added value to the Egyptian economy.
"The harbor will include a ship repair dry dock for transit ships that will be the only one in the proximity besides Jeddah; it will also include fueling stations and a dedicated area for corn storage and trading. Further studies are being made to qualify the port to handle meat and livestock," said Hannoura.
"The Safaga Port development project is a strategic project that will contribute in boosting the Egyptian economy, the maritime sector and transshipment in the region. Currently, ships and containers go to harbors in Turkey, France and Holland, as comprehensive maritime services are not fully available in Egypt," said Omar Elkheshen, managing director of Bareeq Capital, a private equity firm.
© Zawya 2013
