SCCT turns to clean energy to protect East Port Said from EU carbon taxes

The New and Renewable Energy Authority (NREA) signed two contracts to supply state-generated clean power to the Suez Canal Economic Zone (SCZone), according to a statement. The first lets the NREA wheel green power — via the national grid and then the SCZone Infrastructure Company’s distribution network — to the zone’s contracted consumers. The second is a one-year power purchase agreement with the Suez Canal Container Terminal (SCCT) to supply the East Port Said operator with clean electricity.

Why it matters: East Port Said handles around 79% of Egypt’s transshipment trade (as of 2024), and it is one of only two ports — with Morocco’s Tanger Med — on the EU’s list of neighboring container transshipment ports under the ETS. Being listed means a stop there is disregarded for tax purposes — a ship calling at East Port Said en route to or from the EU must still account for 50% of the emissions on the larger long-haul voyage, so the stop no longer “resets the clock.” That removes an advantage the port would otherwise offer and gives carriers reason to reroute through non-listed havens — Saudi or UAE ports, or even Alexandria or Sokhna. Cutting the terminal’s own operational emissions is one way East Port Said stays competitive as those rules bite.

The buyer’s own climate math: SCCT operates the main container terminal at East Port Said and is owned by APM Terminals, part of Maersk — which is targeting net-zero emissions by 2040. A clean-power PPA lets a flagship hub cut the carbon footprint of its operations to serve its parent’s decarbonization goals, at a terminal that took the #1 regional and #3 global spot for port efficiency after its 2025 expansion.

Transport corridors

Egypt and Turkey signed an MoU to cooperate on regional and international transport corridors — aiming to strengthen connectivity between Asia, Africa, and the Arab world — during Transport Minister Kamel El Wazir's visit to the Türkiye Maritime Summit. The agreement covers cooperation on transit transport, new trade routes, and strategic corridors including the Middle Corridor and Iraq’s Development Road.

Why it matters: The MoU lays the groundwork for broader transport integration between Egypt, Turkey, Saudi Arabia, Jordan, and Syria, as governments seek to improve multimodal connectivity and diversify trade routes linking Asia, Africa, and Europe. It also supports Egypt's ambition to become a regional transport, logistics, and transit trade hub by expanding its role in emerging trade corridors beyond the Suez Canal.

Beyond logistics

DP World plans to expand its investments in the Suez Canal Economic Zone into manufacturing, Chairman Essa Kazim said during a meeting with Prime Minister Mostafa Madbouly. The UAE logistics giant is looking to build on its existing logistics operations by adding value-added industrial projects and creating jobs.

Joining the party

London-based professional services firm Ernst & Young (EY) is setting up a regional IT outsourcing and consulting hub in Egypt, with the aim of creating 1k specialized tech and consulting jobs over the next three years, according to a statement from the Communications and Information Technology Ministry. Under an agreement with the Information Technology Industry Development Agency, the center will export high-value services to the wider MENA region — from cybersecurity and data analytics to AI and risk consulting.

Why it matters: EY is joining the growing outsourcing industry in the country, which doubled in value to USD 4.8 bn from 2022 to 2025. Unlike traditional industries, exporting tech and consulting services requires minimal capital and almost no imports, and it prints hard currency for the national balance sheet. With heavyweights like Deloitte and Concentrix already pouring serious capital into local hubs, the government may realize its goal of seeing USD 9 bn in digital exports this year.

AI at the wellhead

The Oil Ministry is pitching a new AI joint venture with Abu Dhabi-based AIQ — an Adnoc subsidiary — under the proposed AIQ Egypt JV, according to a statement from the ministry. The platform would plug data from the Egypt Upstream Gateway into AIQ’s tools to support exploration and production decisions, including seismic interpretation, well data analysis, and asset management.

IN CONTEXT- The pitch lands at a time when the government is trying to sustain the petroleum sector’s return to growth after more than two years of contraction. The state has cleared USD 6.1 bn in arrears to international oil companies, introduced new upstream incentives, and is now looking to de-risk a USD 1.3 bn drilling push targeting 101 wells this year.

Raw interest

Several Gulf companies have expressed interest in buying into Arab API’s pharma raw-materials plant currently under construction in Ain Sokhna, Al Arabiya reports, citing Arab Company for Drug Industries and Medical Appliances (Acdima) Chairwoman Olfat Ghorab. The state-owned holding company is open to bringing on new investors for the project, which is targeting operations in 2028 and exports to the Gulf, North Africa, and parts of Central Asia.

REMEMBER- Arab API broke ground in January on the Suez Canal Economic Zone (SCZone) plant, which was billed at the time as a USD 165 mn project to help curb Egypt’s pharma raw-material import bill. Egypt produces most of its finished meds locally (around 91%), but still imports over 90% of raw materials and APIs, making upstream localization the real gap.