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Egypt to launch the largest logistics project in Middle East

Transport Minister Kamel al-Wazir witnessed the signing of a Memorandum of Understanding (MoU) between the Transport Ministry and major European and German companies in the field of handling container terminals, dry ports and logistics to launch the largest logistics project in the Middle East and Africa.

The project includes a container terminal, a railway line, a dry port and a cargo distribution area, with a total investment of 750 million euros, as a first phase.

The minister added that the project also includes the establishment of an integrated logistic corridor that includes a container terminal. The terminal will be linked to a dry port in al-Dhuhair area through a railway line.

The corridor will serve ports of the Eastern branch of the Suez Canal and ports overlooking the Mediterranean, which will reduce pressure on road transport, he said.

The MoU aims at cooperation on a business model for the project to achieve economic development at the Damietta Port and the surrounding area, which in turn will make other Egyptian ports more competitive, the minister said in a statement on Wednesday.

The project will contribute to making the port a pivot point in the Eastern Mediterranean region and to the opening of new export markets through the operation of direct shipping services to the port and increased competitiveness with countries producing similar industrial products, said Wazir.

He pointed out that the project will also contribute to attracting foreign direct investment, reflecting positively on the investment climate in Egypt.

The feasibility study and the proposed business model will be complete within four months. The terminal will be complete by the end of 2022, he stated.

Edited translation from Al-Masry Al-Youm



Private sector to take part in river transport in early FY2018-19

Government wants more private-sector investment in river transport: The River Transport Authority is planning to issue a tender to have the private sector develop and run ports along the Nile in early FY2018-19, which begins in July, authority head Abdel Azim Mohamed reportedly said on Tuesday. He added that an unnamed Saudi-Bahraini consortium is close to signing a USD 100 mn agreement to develop a waterway connecting the Port Said industrial zone with the Nile River. He also reportedly said that a Ukrainian company had reached a USD 100 mn this month with the authority to transport key goods after a delegation from the company visited Egypt this month. By our count, he could be referring to Ukrainian grain trader Nebulon, which is studying the possibility of investing in grain storage and transport projects in Damietta. His statements come as the government looks to encourage private-sector investment in the sector, where non-government players include companies owned by Qalaa Holdings and Raya Holdings. The Transport Ministry is planning to launch tenders for the development of four Nile ports once legislation regulating river traffic and commercial transport is passed. Rumors abound that the Ismail Cabinet is about enact a decision mandating government bodies move a portion of their supplies through the Nile.


Ukrainian company considers investing in grain transport, storage projects at Damietta Port

Ukrainian grain trader Nebulon is studying the possibility of investing in grain storage and transport projects in Damietta, Al Mal reports. A company delegation met with Damietta Port Authority head Ayman Saleh, who accompanied them as they inspected the grain handling stations the port plans to tender. The Damietta Port has been undergoing major upgrades, with the government breaking ground on an EGP 1.3 bn multipurpose platform just last week.


EU delegation visits Damietta Port to explore cooperation

EU Ambassador Ivan Surko_ and the EU’s First Secretary of the Trade and Enterprise division Klara Kanska visited yesterday the Damietta Port to explore potential cooperation, Al Mal reports. The officials discussed the planned construction of a new container terminal at the port and the logistical services available for oil tankers, among other projects open for investment.