Abu Dhabi Ports buys majority stakes in two Egyptian companies for $140 million

Egypt’s Ain Sokhna port (Photo: Reuters)

Abu Dhabi Ports Group has completed the acquisition of a 70% stake in Transmar International Shipping International “Transmar” and Transcargo International “TCI” in a transaction valued at US$140 million.

The acquisition of the two Egyptian companies is Abu Dhabi Ports Group’s first international acquisition and provides it with a market-leading platform to secure further growth in container and freight volumes and port operations in Egypt, North Africa, the Gulf, and the entire Red Sea area.

In the last year, Abu Dhabi Ports has significantly expanded its global presence through significant investments and collaborations in markets along the UAE’s main trade routes, including Jordan, Uzbekistan, Tanzania and Egypt.

Transmar is a container line operating in the Middle East, Red Sea, Arabian Gulf and the east coast of the African continent.

In addition to Khalifa and Jebel Ali, the list of ports it serves includes Adabiya and Ain Sokhna in Egypt, Jeddah, Jubail and Dammam in Saudi Arabia, Aqaba in Jordan, Port Sudan in Sudan, Djibouti UAE port in Djibouti.

The company has specialized capabilities in handling petrochemical products, which constitute a major part of trade activity in these industries.

TCI is a freight forwarding company specializing in the handling of engineering cargo, heavy cranes, bulk, industrial bulk, general cargo, containers, and warehouse and storage facilities.

The company has a fleet of advanced loading and unloading equipment, and its business is concentrated in the Port of Adabiya, one of the most important ports serving the region overlooking the Red Sea in Egypt. It is the exclusive and largest operator of the port as it manages a substantial market share of stevedoring services.

The companies are on track to achieve up to $137 million in revenue and $65 million in earnings before interest, taxes, depreciation and amortization for the full year 2022.