AD Ports Group Expands Operations With SEIC Stake In Alexandria Container And Cargo Handling Company

AD Ports Group has acquired a 19.328% stake in Alexandria Container & Cargo Handling Company (ALCN) from the Saudi Egyptian Investment Company (SEIC), a PIF entity. This acquisition, valued at around EGP13.2 billion, is a key step in AD Ports Group's strategy to expand its influence in Egypt and strengthen its role as a major trade facilitator in the Mediterranean.

The investment aims to boost AD Ports Group's capacity to manage trade along the East-West corridor linking Asia, the Middle East, and Europe. It also supports Egypt's goals for economic diversification and sustainable growth. SEIC's strategy focuses on enhancing the value of its portfolio companies while reallocating capital towards new opportunities with high potential in Egypt.

ALCN, established in 1984 and listed on the Egyptian Exchange since 1995, operates two terminals on the Mediterranean coast: Alexandria and El-Dekheilla. These terminals have a combined capacity of 1.5 million TEUs and achieved a throughput of 1.07 million TEUs with a utilization rate of about 71% by FY 2025.

The terminals span approximately 1.6 kilometers of quay length and are integrated with Egypt’s national rail network, ensuring efficient multimodal connectivity for international shipping lines. ALCN serves major global carriers and reported EGP 8.37 billion (USD 168 million) in revenue and EGP 6.09 billion (USD 129 million) in adjusted EBITDA for FY 2025.

SEIC has invested across various sectors like logistics, education, digital payments, healthcare, consumer finance, and retail, contributing significantly to Egypt's market growth. Since August 2022, SEIC's involvement with ALCN has improved its operational efficiency and business expansion, leading to a remarkable 194% increase in total operating revenue between FY 2022 and FY 2025.

Leadership Perspectives on Investment

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, stated that acquiring a stake in ALCN expands their operations along crucial maritime routes. "This investment supports our efforts to facilitate trade through this vital corridor," he said, emphasizing alignment with leadership directives for economic diversification.

Muteb Al Shathri, acting CEO of SEIC, remarked on their ongoing search for quality investments within Egypt’s promising sectors to foster long-term partnerships that benefit both Egyptian and Saudi markets. He highlighted ALCN as one of their earliest investments in Egypt that has seen significant success due to strengthened governance and strategic clarity.

Future Investment Plans

Al Shathri added that this transaction underscores SEIC’s successful vision as an influential investor in Egypt capable of empowering its investments. The proceeds will be used to explore further promising opportunities within the Egyptian market, reflecting SEIC’s confidence in Egypt as a sustainable investment destination.

AD Ports Group financed this acquisition using both existing cash reserves and debt options. This move is expected to enhance their operational footprint significantly while fostering deeper partnerships within the region for long-term stakeholder value creation.

With inputs from WAM