Canal Shipping Agencies has extended its management contract with the Red Sea Ports Authority for two key cargo storage yards at Safaga Port, now set for a 10-year term for each facility. The extension follows a revised agreement that lowers the minimum operational value to EGP 32.7 million, down from EGP 85 million.
Terms of agreement
The updated terms come after Canal Shipping Agencies signed a partnership agreement with the Suez Mechanical Stevedoring Company on October 8, 2023. Under this collaboration, the two companies will jointly operate the yards, sharing 20% of the total revenue, while the remaining 80% will go to the Red Sea Ports Authority.
Previously, the operating license covered seven years for the general cargo and vehicle yard—spanning 24,320 square meters—and five years for the hazardous materials yard, covering 5,140 square meters. This strategic extension reflects continued investment in the port’s operational infrastructure and aims to enhance logistics capacity at one of Egypt’s key Red Sea ports.