Canal Shipping Extends Operation Deal at Safaga Port

Deal News | Jun 19, 2025 | Zawya

Canal Shipping Agencies has secured a decade-long extension deal with the Red Sea Ports Authority for the management and operation of two storage yards at Safaga Port. Announced through a bourse disclosure, this agreement renews and extends the company's previous engagement at the port, which included a seven-year contract for a general cargo and vehicle storage yard (24,320 meters) and a five-year term for a hazardous materials yard (5,140 meters). The contract stipulates a revenue-sharing model where 80% of revenues will accrue to the Red Sea Ports Authority and 20% to Canal Shipping Agencies and its new partner, Suez Mechanical Stevedoring Company, who joined forces through a partnership agreement signed on October 8, 2023. Additionally, the financial obligation for managing and operating the yards has been reduced to a minimum of 32.7 million from previously 85 million.

Sectors

Maritime Transportation
Port Management and Operations

Geography

Egypt – The article's activities are centered on Safaga Port within Egypt involving Egyptian entities, reinforcing the geographical focus on Egypt.

Industry

Maritime Transportation – The industry involves the transportation, logistics, and storage of cargo and goods via waterways. This is relevant as Canal Shipping is involved in managing storage yards at a port.
Port Management and Operations – The sector includes the operation and management of ports and related infrastructures, such as storage yards. This applies to the deal for storage yard operations at Safaga Port.

Financials

32.7 million – The minimum financial commitment for managing and operating the two storage yards, reduced from a previous obligation of 85 million.

Participants

Name	Role	Type	Description
Canal Shipping Agencies	Operating Company	Company	Responsible for managing and operating two storage yards at Safaga Port under a contract with the Red Sea Ports Authority.
Red Sea Ports Authority	Contracting Authority	Government	The authority that owns and oversees the operations at Safaga Port, extending a contract with Canal Shipping Agencies.
Suez Mechanical Stevedoring Company	Operating Partner	Company	Newly partnered with Canal Shipping Agencies to manage the two storage yards at Safaga Port.