The General Authority for Suez Canal Economic Zone (SCZONE) and Suez Canal Container Terminal (SCCT) signed a concession agreement for building a second container terminal at Port Said East Port at a total investment of $500 million.

SCCT, majority owned and operated by APM Terminals, a unit of Danish shipping giant Maersk, currently operates a 4 million TEU capacity terminal at Port Said East Port with a quay length of 2,400 metres and a handling yard of 1.2 million square metres.

The mew concession agreement was signed by Waleid Gamal El-Dein, Chairman of SCZONE, and Steven Yoogalingam, CEO and Managing Director of SCCT, on the sidelines of COP27 in Sharm El-Sheikh, SCZONE said in a press statement on Tuesday.

SCCT will develop the project on 'finance, design, construct, manage, and operate' basis,' the statement said.

It said the new terminal, which will serve as an expansion of SCCT's existing terminal, will have a quay length of 955 metres, a handling yard of 510,000 square metres (sqm), and capacity of 2 million TEUs.

SCCT opened in 2004 on a 49-year concession and is a joint venture between APM Terminals (55 percent), COSCO (20 percent), SCZONE (10.3 percent), Egyptian private sector (9.7 percent) and the National Bank of Egypt (5 percent), according to its website.

(Writing by Marwa Abo Almajd; Editing by Anoop Menon)