Port Sudan is the capital of the state of Red Sea and has nearly 300,000 residents. Located on the Red Sea, it is the Republic of Sudan's main port city. It was founded by the British in 1905 as the terminus of a rail line linking the Red Sea to the River Nile. The railroad was used to transport the nation's cotton and sesame seed, as well as sorghum, from the agriculturally rich areas of the Nile valley to export markets. Port Sudan has a oil refinery to handle the petroleum from offshore wells, as well as an oil pipeline to Khartoum that was completed in 1977. An international airport is located in the city.

Port Sudan is known among tourists for its excellent diving and beaches. Tourists also use Port Sudan as a departure point to cross the Red Sea to Jeddah in Saudi Arabia.