Red Sea Ports Authority Partners with Giza Shipyard to Expand Shipbuilding and Repair at Suez Port

Red Sea Ports Authority Partners with Giza Shipyard to Expand Shipbuilding and Repair at Suez Port

Shipping Arabia, March 22, 2026 – Egypt’s Red Sea Ports Authority has signed a usufruct agreement with Giza Shipyard Company to establish and operate a specialized facility for shipbuilding, maintenance, and repair at Suez Port, as part of efforts to expand maritime industrial capabilities.

According to sources, the contract is valued at EGP 19 million, with an annual increase of 5% on the cumulative contract value. The project will utilize a 367-meter section of the southern quay, along with a 13,200-square-meter back area located within the port’s customs zone.

The agreement grants a 10-year usufruct period, with revenue-sharing arrangements allocating 15% of shipbuilding revenues and 50% of ship repair revenues to the authority. Giza Shipyard will retain 85% of shipbuilding revenues and 50% of repair revenues.

The project reflects Egypt’s broader strategy to expand maritime industries and services within its ports, particularly in shipbuilding and repair, supporting trade and maritime transport while enhancing the ability of ports to provide integrated services to vessels.

Giza Shipyard, established in 1982, specializes in the construction of marine and tourism vessels, including passenger boats with up to 12 cabins and river units used for intercity transport. The company exports its products to markets such as South Sudan, Iraq, and the United Arab Emirates as part of its diversification strategy.

Authorities indicated that the initiative aligns with efforts to maximize the utilization of port assets and increase revenues through localization and domestic manufacturing, while supporting national plans to develop the maritime transport sector and improve port efficiency.

The Red Sea Ports Authority continues to advance infrastructure development projects aimed at optimizing quay and yard utilization, strengthening maritime trade flows, and enhancing integration within the broader transport and logistics system.

Source: Alborsa News