Hutchison Ports is expanding its operations in Egypt with two port-related investments worth a total of $700m, the company has announced.
The Hong Kong-headquartered company said it will make a “significant investment” in Ain Sokhna Port, Egypt's major port, and B100, a new container terminal in the Port of Alexandria.
The two new investments bring Hutchison Ports’ total investment in Egypt to more than $1.5bn.
“Our investment in Sokhna and B100 ... reflects our commitment to Egypt and the wider African market,” Hutchison Ports group managing director Eric Ip said.
“These investments will enable us to provide high-quality services to our customers and contribute to the growth and development of the local economy.”
Hutchison Ports said the new container terminal in Sokhna, which will have a capacity of 1.7m teu, will provide a “significant boost” to Egypt's maritime trade, as it is “strategically located on the Red Sea and offers direct access to major shipping routes”.
“The B100 container terminal, on the other hand, will provide a new gateway to the Port of Alexandria, which is one of the largest ports in the Mediterranean and a key hub for trade between Europe, Asia, and Africa,” the company said.
Hutchison Ports said it has a “strong track record” of investing in emerging markets and is committed to “working closely with local partners and stakeholders” to drive sustainable growth and development.
The new terminal facilities will further expand the network to 52 ports in 25 countries across Asia, the Middle East, Africa, Europe, the Americas and Australasia.
Hutchison Ports operates two ports in Egypt — the Ports of Alexandria and El Dekheila, both located on the Mediterranean Sea.
In August 2020, it announced that it was investing with the Egyptian Navy on the development and operation of a new container terminal in Abu Qir, Egypt. The total investment in the new terminal is estimated to reach $730m.
Earlier this week, Singapore’s PSA International was reported to be looking at selling its 20% stake in the ports business of CK Hutchison Holdings, a stake it bought in 2006 for $4.4bn.
Chinese state-owned conglomerates China Merchants Group and China Cosco Shipping Corp are said to be among the firms expressing an interest in the stake.
PSA is said to be looking for about $4bn for its share of CK Hutchison’s ports assets, with Singaporean state investment firm Temasek said to be working with an adviser as it fields preliminary interest.
A PSA International spokesperson declined to comment on the development when contacted by TradeWinds.