The Red Sea Ports Authority (RSPA), a subsidiary of Egypt's ministry of transportation, is set to offer the Safaga Port to the private sector this month through the Public-Private Partnership (PPP) unit of the ministry of finance, an official source at the PPP told Zawya.
"The project is set to be offered upon the completion of a draft preliminary study, which is currently being compiled by German consultants Hamburg Ports, and [upon the finalization of] relevant project terms and conditions," said Basel Sheira, transport and utilities project manager at the PPP.
He added that the Safaga Port is estimated to cost around EGP 6 billion (USD 858 million) and ranks third among the priority projects being undertaken by the PPP - after the Abu Rawash wastewater treatment plant and the waste recycling project.
"The project seeks to transform the area into one that is capable of creating value-added industries and increasing the capacity of raw and processed phosphates for export. [It will also be home] to a maritime services unit, docks for receiving [shipments of] meats, meat manufacturing facilities, veterinary facilities and industries utilizing slaughter waste," Sheira explained.
Safaga Port will also feature a designated industrial area for receiving and processing grains as well as hosting grain silos, allowing it to be the first genuine project targeting the development of Upper Egypt.
Funding for compiling the relevant preliminary studies for PPP projects was provided by the Islamic Development Bank, The International Monetary Fund, the European Union, the European Investment Bank and the European Bank for Reconstruction and Development. These agencies offered the respective tenders in collaboration with the consultation offices involved in compiling the feasibility study.
Safaga Port is located on the Red Sea, approximately 60 kilometers south of Hurghada. With a depth reaching 16 meters, vessel capacity at the port can accommodate up to 60,000 tons, with daily shipping volume recorded at 12,000 tons.
© Zawya 2013
