A lot of gold talk at day one of the Egypt Mining Forum

Wednesday, 17 Jul 2024

A lot of gold talk at day one of the Egypt Mining Forum

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Today at a glance

Mining

Here’s what you missed from day one of the Egypt Mining Forum.

What We're Tracking Today

IMF trims Egypt’s growth outlook.

Energy

Gov’t to clear USD 3.2 bn worth of oil and gas arrears this FY.

Also on our Radar

Automakers are already lining up for the government’s local manufacturing initiative.

DEBT WATCH

EBRD extends USD 130 mn loan to Coca-Cola HBC Egypt.

What We're Tracking Today

CBE soaks up more liquidity from the market.

Also on our Radar

FABMisr to launch a consumer finance outfit.

PLANET FINANCE

IMF holds global growth forecast steady.

HARDHAT

A deep dive into the new cabinet’s new transport and logistics infrastructure strategy.

What We're Tracking Today

IMF trims Egypt’s growth outlook

Good morning, folks. It’s another busy morning here in Cairo, led by a fresh IMF growth forecast and lots of gold talk from the first day of the Egypt Mining Forum.

WATCH THIS SPACE-

#1- IMF trims Egypt’s growth outlook: The IMF has cut our growth forecast for the current fiscal year to 4.1%, down 0.3 percentage points from its April forecast in its updated World Economic Outlook (pdf). The Fund also trimmed its growth forecast for the fiscal year 2023-2024 to 2.7%, down 0.3 percent points from the 3.0% penciled in its latest forecast.

Below gov’t projections: The new Madbouly cabinet expects to see the economy growing at a 4.2% clip during the current fiscal year.

** We dive into the IMF’s global growth outlook in the news well, below.

#2- HoldiPharma gearing up to sell a stake in Misr Pharma: State-owned pharma manufacturer HoldiPharma is reportedly looking to appoint an investment bank to promote and manage the offering of its subsidiary Misr Pharma to a strategic investor, Al Borsa reports, citing unnamed sources. Misr Pharma has a valuation of EGP 1 bn, according to the fair value study conducted by Financial Advice Corporate Transactions (FACT).

Part of the privatization program: Misr Pharma is included in the list of companies and assets earmarked for privatization.

#3- You’re officially banned from cutting or trimming trees in Cairo, under a decision issued by Cairo Governor Ibrahim Saber. Under the decision, people need to get the greenlight from a specialized committee ahead of transplanting a tree and the procedure needs to happen under the Environment Ministry's supervision.

#4- Medical supplies are being released from ports after the central bank made the required FX available for importers allowing them to take out letters of credit and release their goods from ports. This came following repeated calls from the Medical Supplies Division at the Cairo Chamber of Commerce — the supplies have been held at the ports since May, according to a press release (pdf). The division will submit a proposal to CBE governor Hassan Abdalla to ensure that this doesn’t happen again.

#5- Egypt, Jordan are in discussions over doubling the capacity of their electricity line to 1.1 GW and then doubling it again to 2 GW at a later stage, Jordanian Energy Minister Saleh Al Kharabsheh told Asharq Business.

Remember: Egypt and Jordan have been exploring a cost-effective upgrade to their electricity link through a 1.1 GW subsea cable. The cable was expected to support a planned expansion of the line’s electrical capacity to 2 GW.

IPO WATCH-

We have a date for the Canal Company for Mooring and Lights IPO: The Suez Canal Authority is looking to sell a stake in its Canal Company for Mooring and Lights (CCML) in an IPO on the EGX early 2025, SCA boss Osama Rabie told Asharq Business. Rabie first unveiled the IPO plans back in June of last year, explaining that the company will be transferred to a holding company that will obtain ownership of some of the authority’s assets earmarked for privatization.

“Red Sea tension is still severely impacting the Suez Canal and its revenues,” he said. Suez Canal revenues fell 23% y-o-y during fiscal year 2023-24 to record USD 7.2 bn, he told Al Arabiya.

SPEAKING OF- Houthis attacked two ships passing through the Red Sea, an Israeli-owned vessel and a Greek-operated crude oil tanker, US Centcom confirmed in a post on X. No injuries were reported from either attack.

DEBT WATCH-

CBE soaks up additional liquidity from the market: The Central Bank of Egypt yesterday accepted bids from 32 banks for EGP 1.1 tn in fixed-rate deposits at a rate of 27.75% during its weekly fixed-rate auction, according to data on its website.

HAPPENING TODAY-

It’s day two of the Egypt Mining Forum, which is taking place at the Nile Ritz-Carlton and brings together thousands of industry players and government officials.

What went down on day one? We have everything you need to know about day one of the event in the news well, below.

HAPPENING TOMORROW-

The central bank’s Monetary Policy Committee will meet tomorrow to review rates. Our analyst poll sees the CBE holding rates steady for the second meeting in a row.

PSA-

Fixed Egypt has a new app for official authentication services: Fixed Egypt for Digital Solutions and Information Security (FEDIS) has launched a new app — dubbed Tawkilaty — that will provide e-notarization services for the government’s Digital Egypt platform. The app provides services related to the Real Estate Registration and Authentication Office and allows people to issue new ration cards.

Download the app from the App Store or Google Play.

WEATHER- It’s another toasty one in Cairo, with a high of 38°C and a low of 27°C, according to our favorite weather app.

It’s a bit cooler in Alexandria, with a high of 32°C and a low of 24°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

WAR WATCH-

Israeli and Egyptian officials have held talks over the potential withdrawal of Israeli forces from Gazan border with Egypt, one of the key sticking points standing in the way of a ceasefire agreement with Hamas, the New York Times reports, citing two Israeli officials and a senior Western diplomat.

The conditions: Israel indicated that it would be willing to withdraw from the border if Egypt agrees to certain measures that would prevent the smuggling of arms across the border, including installing electric sensors and underground barriers, the sources reportedly said.

BIG STORY ABROAD-

Surprising absolutely no one, Donald Trump is still plastered across front pages of the global press. The, uhm, highlights:

#1- Trump would give Jay Powell a second term, telling Bloomberg in a sweeping interview that he would allow the US Federal Reserve boss to serve out his current term, which ends in 2026. He also discussed tariffs (he loves them), Tiktok (he doesn’t want to ban it), and taxes (he wants to slash the corporate tax to 15%), among other things.

#2- A Trump presidency could spell a rise in global inflation as a result of his US-first policies like tax cuts and high tariffs, CNBC reports.

#3- The US allegedly received intelligence of an Iranian plot to assassinate Trump weeks before the shooting, which is why the Secret Service ramped up security around him, CNN reported yesterday. Pundits and lawmakers are still asking how the shooter got to within mere meters of Trump.

#4- Trump is lining up new supporters, including former critics from the Republican party and Big Tech.

THE LA IN FRANCE- The government of French Prime Minister Gabriel Attal handed in its resignation yesterday even though left-of-center parties have not yet reached a decision on who will form the next government. The move allows now-former cabinet members who have secured seats as lawmakers in the National Assembly to vote on the next house speaker tomorrow. (WSJ)

It’s similarly a mixed bag in the business press, with no dominant them running across front pages:

Chinese businessman Guo Wengui — a Chinese Communist party critic and Trump ally — was convicted in a US court of what prosecutors said was a USD 1 bn fraud. (Reuters)
Elon Musk says he’s moving the Tesla and SpaceX headquarters from California to Texas in response to a new gender identity law he opposes in the Pacific state. (Reuters)
Turkey is looking to impose a minimum corporate tax on large multinationals and will hike pensions as part of a corporate tax overhaul. (FT | Daily Sabah)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a deep dive into the new cabinet’s new transport and logistics infrastructure strategy.

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IMF

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Mining

Here’s what you missed from day one of the Egypt Mining Forum

The Egypt Mining Forum kicked off yesterday, bringing together over 4k attendees for 15 sessions with over 50 speakers to discuss the mining market’s potential and to unveil ambitious plans for the sector. Enterprise was in attendance and spoke to some of the biggest players in the market — Here’s everything you need to know about the first day of the forum.

SHALATEEN TO ANNOUNCE TENDER WINNER NEXT MONTH-

We’ll finally learn who was awarded the four-time extended Shalateen gold exploration tender. The company will announce the results of the tender in August and then quickly follow that with a fresh tender also for exploration in the Eastern Desert, Chairman Sherif El Shahawy told Enterprise.

Demand was high: Some 12 companies — including some that have never worked in the Egyptian market before — took out the tender’s conditions booklet, he said, explaining that the many delays the tender witnessed caused some of them to withdraw their applications.

Shalateen to significantly up gold deliveries to the CBE this year: State-owned Shalateen Mineral Resources Company wants to deliver 1.2 tons of gold — worth EGP 2.6 bn — to the Central Bank of Egypt this year, El Shahawy said. The figure would mark a 60% y-o-y increase from the 720 kg of gold — worth EGP 1.3 bn — delivered last year.

Breaking ground on Aswan mining complex: El Shahawy told us that his company has started construction works on its EGP 350 mn industrial mining complex in Aswan, adding that the complex should be ready for operation next May.

ATON PUSHES BACK GOLD PRODUCTION DATE-

Mark your calendar for 2026: Canadian gold miner Aton Resources now expects to start extracting gold from its Abu Marawat concession in the Eastern Desert by 2026, CEO Tonno Vahk told Enterprise. We were expecting the company to start extraction a year earlier as per unconfirmed reports. The company will invest some USD 25 mn this year to build the mine, Vahk said, adding that “we also have to invest about the same amount in the next two, three years into exploration and drilling. Because we are going to be running separate drill programs in parallel.”

Who’s paying? The company is in talks with a number of development banks to help it secure the required funds, he added.

KSA expansion next? “We are planning to start projects in Saudi Arabia … maybe this year,” Vahk told us, adding that the company is looking to form a partnership to participate in bids for gold exploration licenses.

ANOTHER CANADIAN MINER TO START DRILLING SOON-

Red Sea Resources to start drilling soon: Egypt-focused Canadian gold miner Red Sea Resources will start drilling for gold — in the five blocks it was awarded back in 2020 — “in the near future,” Chairman Allan Fabbro told Enterprise. The company could invest about USD 2.5 mn during the remainder of 2024 and up to USD 10 mn in 2025 if its drilling tests prove successful.

ALSO FROM THE FORUM-

#1- A mining digital investment platform: The Oil Ministry is working on a digital platform for mining investments as part of its efforts to create a more attractive investment platform for the mining sector, Oil Minister Karim Badawi said during the forum. The platform kicked off trial operations yesterday at the forum and will go live by the end of the year.

Turning the Eastern Desert into a regional gold hub: The government is also looking into building a gold refinery and logistics center in the Eastern Desert, part of the ministry’s broader plan to increase the mining sector’s contribution to the GDP to 5% from less than 1% at the moment, Badawi said.

#2- Centamin to launch mining school: LSE- and TSX-listed gold mining company Centamin plans to establish Egypt’s first mining school, Centamin CEO Martin Horgan announced. The school — which will be set up in cooperation with Elsewedy Technical Academy — is expected to kick off operations for the 2025-2026 academic year.

#3- Newmont — the world’s largest gold miner — is mulling entry into the Egyptian market, an unnamed government official told Asharq Business. Pending parliamentary approval, Newmont seeks to sign gold exploration contracts akin to those previously inked with Canada’s Barrick Gold and Centamin around three years ago.

#4- Saudi-based mining company AGC is eyeing a stake in AFAQ Mining, which owns the rights to a concession in West Gabal Elbah, AGC Chairman Khalid Al Jahdali told Asharq Business on the sidelines of the Egypt Mining Forum, without sharing any details about the exact size of the stake.

SPEAKING OF- AFAQ Mining to invest USD 40 mn on gold explorations in Egypt over the coming three years, AFAQ Holding Chairman Amr El Marsafawy told Asharq Business.

A WHOLE LOTTA COOPERATION PROTOCOLS-

Four cooperation protocols: Several state-owned and private players in the mining sector inked cooperation protocols on the sidelines of the forum that includes: An agreement between the Egyptian Mineral Resources Authority (EMRA), the National Company for Telecommunications Services (NCTS), and the Egyptian Maintenance Company to provide communication solutions for the authority and its companies; An agreement between EMRA and EK Mining to invest in value-added mining activities; An agreement between Shalateen Mineral Resources and the Desert Research Center to exchange expertise; An agreement between the New Valley Company for Mineral Resources and Diyar Engineering to provide project management consultation.

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gold mining

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Energy

Egypt to clear USD 3.2 bn worth of oil and gas arrears this FY

Gov’t to clear USD 3.2 bn worth of arrears to foreign oil and gas companies operating in the country during the current fiscal year over three installments, an unnamed government official told Asharq Business.

The timeline: The first installment — of around USD 1.2 bn — is scheduled for October. It will be followed by two USD 1 bn payments scheduled for the months that follow.

Remember: The government cleared USD 1.3 bn worth of debt owed to foreign oil and gas companies at the end of June, marking the second large chunk of arrears paid to oil companies since the beginning of the year. The government made a USD 1.5 bn payment in March after the float of the EGP.

The key to unlocking fresh oil investments: The pileup of unpaid dues likely pushed away foreign energy players from launching new projects or deploying fresh investments in Egypt. Case in point, Italian energy giant Eni unveiled plans to drill two new wells in the Zohr field in 2H 2025 shortly after June’s USD 1.3 bn payment was announced.

Tags:

energy Eni oil and gas

DEBT WATCH

EBRD extends USD 130 mn loan to Coca-Cola HBC Egypt

EBRD funnels some USD 130 mn into the private sector: The European Bank for Reconstruction and Development (EBRD) is extending a USD 130 mn loan to Coca-Cola HBC Egypt — a major bottling partner of The Coca-Cola Company — to finance the company’s capex and working capital requirements, according to statements from the two parties here and here. The loan comes as part of the EBRD’s efforts to boost “the competitiveness and growth of Egypt’s private sector.”

In detail: Coca-Cola HBC will use the funds to invest in water and energy efficiency, renewable energy, energy-efficient equipment, sustainable packaging, and digital innovation, the company said. It will also invest in its YouthEmpowered and She Leads training programs to empower young people and women in the workforce.

A USD 750k grant to boot: The loan will be complemented by a USD 750k grant from multilateral environmental fund Global Environment Facility (GEF) “to promote the implementation of advanced wastewater treatment technology and water management systems in Egypt as per EU discharge standards.” The grant will be provided under the Environmental Technology Transfer programme — a joint initiative by the EBRD, GEF, and UNEP that aims to reduce pollution in the Mediterranean Sea.

What they said: “The new financing will also help alleviate water pollution by promoting advanced wastewater treatment technology as well as fostering inclusion by increasing employment and training for Egyptian youth, benefiting the local economy,” the EBRD Managing Director for the Southern and Eastern Mediterranean Heike Harmgart said.

Tags:

debt watch EBRD

LAST NIGHT’S TALK SHOWS

Egypt’s El Sisi, Macron talk cooperation, Gaza

It was another quiet night on the airwaves, with Ala Masouleety’s Ahmed Moussa bringing us the only news worth noting.

El Sisi, Macron talk cooperation, Gaza: President Abdel Fattah El Sisi discussed economic cooperation and the latest on Gaza during a phone call with his French counterpart Emmanuel Macron yesterday. Moussa had coverage (watch, runtime: 2:35).

AND- Another heatwave incoming: Egypt will witness a severe heatwave starting today and until the middle of next week, Egyptian Meteorological Authority official Manar Ghanem told Moussa (watch, runtime 4:35).

Tags:

Gaza LAST NIGHT’S TALK SHOWS Middle East politics

EGYPT IN THE NEWS

That’s a wrap on the Bob Menendez saga

That’s a wrap on the Bob Menendez saga: US Senator Bob Menendez has been found guilty on all counts in a corruption case that includes acting as a foreign agent for the Egyptian government. Menendez pleaded not guilty back in March and continues to claim that he has never been a foreign agent. He will be sentenced on 29 October and could face decades in prison. (FT | AP | ABC | Bloomberg | BBC | Washington Post)

Tags:

politics

Also on our Radar

Automakers are already lining up for Egypt’s local manufacturing initiative

AUTOMOTIVE-

Automakers line up for local manufacturing initiative: General Motors, Nissan, and GB Corp have registered to participate in the upcoming Egyptian Automotive Industry Development Program (AIDP), which will offer incentives to auto players with the aim of localizing the industry, an unnamed government source told Al Mal. Companies will need to produce no less than an annual 5k units per model and 10k units per factory to be eligible for the incentive package.

Other players are interested: Stellantis has expressed interest in joining the AIDP, alongside the manufacturers of Proton, Geely, Jac, and BYD vehicles, the source added.

More locally-produced cars? Five automotive players are looking to either expand their local production or start assembling their units locally, a government official told us, naming GB Corp, Nissan, Chevrolet, Global Auto, and Kasrawy Group.

In line with our localization push: The government is looking into increasing the required local component percentage in car manufacturing in efforts to boost feeding industries as more global players look to assemble their units locally, the source added.

REAL ESTATE-

A new mixed-use project incoming: The government’s Urban Development Fund and Mint Real Estate Assets — a joint venture between Al Ahly Sabbour and the National Bank of Egypt — have opened the reservation door for its EGP 6 bn Fustat View mixed-use project, Al Borsa writes, citing the fund head Khaled Siddiq. The project is 40% complete and its first phase is slated for delivery next year. The project is expected to generate EGP 12-13 bn in sales, Mint Chairman Tamer Erfan told Asharq Business (watch, runtime: 1:11).

More Mint projects to come: The company is currently mulling over new projects in New Cairo, the 6th of October City, and Sharm El Sheikh, according to Erfan.

AND- Al Ahly Sabbour wants a piece of Downtown: The local real estate developer is looking into investing in state-owned properties in Downtown Cairo — namely hotels — through its partner Melee Development, chairman Ahmed Sabbour told Asharq Business.

EXPANSION-

Informa opens new regional hub in Cairo: Global events and digital services firm Informa plc inaugurated its new regional hub office at Cairo Festival City, according to a press release (pdf). The new hub “reflects the company’s ambitions to further expand its presence and team in Cairo: a significant regional hub for its growing India, Middle East and Africa business.”

MANUFACTURING-

Euromed to expand capacity: Medical supplies manufacturer Euromed for Medical Industries wants to work with an undisclosed Chinese partner to carry out a USD 10 mn expansion that will see it produce a vital medical product that is only produced in five countries, Chairman Mohamed Ismail told Al Borsa. The two sides are in the negotiations phase and Ismail expects them to reach an agreement by the end of 2024.

NBFS-

FAB to launch a consumer finance outfit: First Abu Dhabi Bank is gearing up to launch its consumer finance arms with a capital of around EGP 75 mn once it receives its license from the Financial Regulatory Authority, Consumer Banking Head Mariam El Samny told Al Masdar. The bank’s new arm will likely begin operation in 4Q 2024, she added.

Tags:

Al Ahly Sabbour ALSO ON OUR RADAR automotive FABMisr Manufacturing real estate

PLANET FINANCE

Everything you need to know about the IMF’s latest World Economic Outlook update

IMF holds global growth forecast steady: The International Monetary Fund maintained its 2024 global growth outlook at 3.2% in its updated World Economic Outlook (pdf) and slightly upgraded its 2025 outlook to 3.3%.

The regional outlook: The Fund slashed Saudi Arabia’s growth outlook for the year by 0.9 percentage points to 1.7% and next year’s by 1.3 percentage points to 4.7%, mainly due to the extension of oil production cuts. This downgrade dragged the regional outlook for 2024 to 2.4%, down 0.4 percentage points from April’s forecast.

Where do major economies stand? Both the US and Japan saw their outlook slashed — the US saw its 2024 forecast trimmed 0.1 percentage points to 2.6% thanks to “a sharper-than-expected slowdown in growth reflected moderating consumption and a negative contribution from net trade.” Meanwhile, the Fund sees the Japanese economy growing at a 0.7% clip this year, down 0.2 percentage points from April’s forecast due to “temporary supply disruptions linked to the shutdown of a major automobile plant in the first quarter.”

It’s a different story for the Eurozone, which saw its 2024 growth revised upwards 0.1 percentage points to 0.9%, mainly driven by a more optimistic growth outlook for France and Spain.

Also revised upwards, was growth in India and China — which accounted for close to half of global growth. The Fund sees the Chinese economy growing 5.0% in 2024 — a 0.4 percentage points upgrade from its April forecast — and India growing 7.0% after a 0.2 percentage points upwards revision,

Words of wisdom for EMs: “In emerging markets and developing economies, recent policy divergences highlight the need to manage the risks of currency and capital flow volatility. Given that economic fundamentals remain the main factor in USD appreciation, the appropriate response is to allow the exchange rate to adjust, while using monetary policy to keep inflation close to target,” the report read.

The inflation outlook: “We project global inflation will slow to 5.9% this year from 6.7% last year, broadly on track for a soft landing. But in some advanced economies, especially the United States, progress on disinflation has slowed, and risks are to the upside,” IMF chief economist Pierre-Olivier Gourinchas said in a blogpost.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, with the ASX 200 up, the Nikkei and Hang Seng flat, and both the Kospi and Shanghai Composite in the red. Futures for major US and European equities benchmarks were largely unchanged overnight.

EGX30	27,829	-0.4% (YTD: +11.8%)
USD (CBE)	Buy 47.97	Sell 48.10
USD (CIB)	Buy 47.99	Sell 48.09
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,080	+1.1% (YTD: +0.9%)
ADX	9,156	+0.1% (YTD: -4.4%)
DFM	4,110	-0.1% (YTD: +1.2%)
S&P 500	5,667	+0.6% (YTD: +18.8%)
FTSE 100	8,165	-0.2% (YTD: +5.6%)
Euro Stoxx 50	4,948	-0.7% (YTD: +9.4%)
Brent crude	USD 83.73	-1.3%
Natural gas (Nymex)	USD 2.18	-0.2%
Gold	USD 2,473	+0.2%
BTC	USD 64,700	+1.4% (YTD: +53.1%)

THE CLOSING BELL-

The EGX30 fell 0.4% at yesterday’s close on turnover of EGP 3.3 bn (20.5% below the 90-day average). Local investors were net buyers. The index is up 11.8% YTD.

In the green: Palm Hills Development (+4.4%), Alexandria Containers and Cargo Handling (+3.3%), and Orascom Development Egypt (+2.8%).

In the red: Elsewedy Electric (-6.7%), Beltone Holding (-1.6%), and ADIB (-1.4%).

Tags:

Financial Markets global economy IMF Planet Finance

HARDHAT

A deep dive into the new cabinet’s new transport and logistics infrastructure strategy

What does the new cabinet have lined up for the transport and logistics sectors? The new Madbouly cabinet has big plans for the country’s ports, airports, and railways to be carried out over the coming three years as laid out in the 276-page document that details its plans for the years to come.

** We already dove into the economic and greenaspects of the new cabinet’s plan.

PORTS-

Suez Canal transits and revenues are lined up for increases: The government sees a hike to Suez Canal transits from 13.7k vessels this calendar year to 23k next year, and finally ramping up to 26k by 2026 at which transit numbers are projected to remain into 2030. Meanwhile, canal revenues are forecasted to more than double from USD 4.2 bn in 2024, to USD 9 bn next year. Suez Canal income is then expected to rise sequentially, hitting USD 12.2 bn by 2030.

We are assuming a best case scenario: Suez Canal revenues continue to take hits from disruptions on the back of Houthi-led attacks in the Red Sea, falling some 23% y-o-y during FY 2023-2024 to USD 7.2 bn, SCA boss Osama Rabie told Al Arabiya yesterday.

A boost for SCZone ports: The new cabinet intends to sequentially increase capacity at Suez Canal Zone ports via improvements to port infrastructure. East Port Said Port is set to see its present capacity of some 3.8 mn export and import containers increased to 4.8 mn containers by the end of the current fiscal year, and reaching a target of 5.3 mn containers by 2030. The port’s capacity for transit containers is also lined up to top 5 mn by 2030. Ain Sokhna Port is slated to see its total capacity of export, import, and transit containers more than doubled from some 900k TEUs at present, to 2.5 mn TEUs in 2030.

And right next door to the ports: The government is looking to continue developing logistics zones adjacent to ports to mediate transport between production hubs and export and import terminals. Alexandria is also scheduled to see a new multipurpose terminal and logistics zone at its port, with integrations to the International Coastal Road.

And to carry (some) of Egypt’s trade: The new cabinet has also outlined plans to boost the national shipping fleet to 31 vessels by FY 26-27, increasing its capacity to some 20 mn tons of various cargo a year. Also on the cards is the establishment of a shipping line linking Egypt to Latin America and to a logistics zone at a Brazilian port.

Other maritime logistics and dry port targets highlighted in the report:

The establishment of 31 new dry ports and logistics zones;
The development of seven logistics corridors, connecting industrial, agricultural, service, and mining hubs with the country’s ports;
Upgrades to ports with added berths of depths between 18 and 22 meters, while extending total berth lengths at national ports to some 100 km;
More partnerships with the world’s largest shipping lines, and container terminal operators;
More digitalization at the country’s ports.

Supply chains are also set to get a boost via the establishment of logistics zones for strategic goods, the development of futures contracts to hedge against price fluctuations, incentives for electronic B2B commodity trades, as well as promoting the local commodities exchange’s role in price clearing. Also on the agenda are improvements to the e-portal for commodity prices and the launch of a digital portal connecting grain, poultry, and meat importers with buyers.

AIRPORTS-

The cabinet has outlined boosts to capacity at national airports and national carrier Egypt Air, the report explained. Airport capacity is slated to increase to 72.2 mn passengers by FY 26-27, cranking up to 109.2 mn passengers a year by 2030. Egypt Air’s cargo fleet is slated to see a boost from 4 to 6 freighter aircraft by the end of the current fiscal year, and remain stable until 2030. The national carrier’s passenger fleet on the other hand is set to almost double, from 65 aircraft in the current fiscal year to 97 in FY 26-27 and reaching 125 by 2030. The added passenger aircraft are also expected to increase cargo capacity via belly cargo holds.

Other aviation goals outlined in the report:

Providing international players with concessions to manage and operate national airports in a move to boost revenues;
Structural reforms to Egypt Air and its subsidiaries;
Reeling in FDI in the airport sector;
Promoting the development of the budget air travel sector;
Improvements to weather monitoring and early warning systems, as well as more digitalization.

ROADS, BRIDGES, AND RAILWAYS-

The government is looking to continue expansions in road infrastructure, outlining plans to add some 7k km in new roads while upgrading and boosting the capacity of another 10k km, in a bid to ease congestion, boost road freight volumes, improve connectivity with peripheral regions and agricultural hubs, and save state coffers some USD 8 bn in fuel wasted due to gridlocks. Highways and bridges will also be spotlighted, with plans for 35 new Nile axes as well as 1k new bridges and tunnels.

The new cabinet is looking to boost railway capacity to 2 mn passengers a day by 2030, up from some 1.5 mn passengers a day this year, while also hiking freight capacity from 8 mn tons a year to 13 mn tons a year during the same period. In order to implement these changes, the government sees itself overhauling the national inventory of rolling stock through the import of 210 railway locomotives and refurbishment of another 222, as well as the deployment of seven new sleeper trains and refurbishment of 121 sleeper cars, in additional to the deployment of 1,215 cargo cars.

Also on the cards for railways:

Upgrades to railway infrastructure, including stations. e-booking, and payments,
Improvements to signaling along some 1.8k km of tracks,
New railway lines and upgrades to capacity along existing rail routes,
The addition of 33 new maintenance workshops,

And there’s something there about metros and electric trains: The government sees itself continuing efforts to establish the 2k km high-speed electric railway, a 111 km light rail transit network, in addition to the Cairo metro’s fourth line and the Alexandria metro and the rehabilitation of Alexandria Raml tram.

Your top infrastructure stories for the week:

Big development plans ahead: The government’s Urban Development Fund plans to invest some EGP 20 bn on the Darah Provincial Capitals Development Project and another EGP 4.2 bn to develop historic Cairo this year, Fund head Khaled Siddiq told Asharq Business.
Construction firm EDECS has laid the foundation stone for the new container terminal at the Ain Sokhna Port, expected to be completed and fully operational within 18 months.
China’s Zhejiang Hengsheng Dyeing and Finishing Company has laid thefoundation stone for its dyeing, processing, and textile manufacturing project in the Suez Canal Economic Zone’s West Qantara Industrial Zone.

Tags:

aviation Hardhat infrastructure logistics transport

CALENDAR

2024

JULY

9-18 July: Act Financial IPO subscription period for institutional investors.

9-23 July: Act Financial IPO subscription period for retail investors.

16-17 July (Tuesday-Wednesday): The Egypt Mining Forum, Cairo, Egypt.

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25 July (Thursday): National holiday in observance of the 23 July revolution.

AUGUST

4-5 August (Monday-Tuesday): Egypt Expat Forum.

SEPTEMBER

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein International Airport.

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

25-26 September (Wednesday-Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

25-28 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

30 September (Monday): Ban on sugar exports expiration.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

End of 2024: Shalateen Mining Company to launch a gold exploration tender in the Eastern Desert.

2025

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

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