East Port Said Port is in line for a major upgrade: The Madbouly government is working on development plans for the East Port Said Port, leveraging its location next to the Suez Canal and its deep-water facilities that can accommodate large vessels, as part of broader efforts to position it as a major hub for transshipment.

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Expanding the port’s capacity: Recent expansion work added 6.3 km to the port’s length, which helped increase its overall handling capacity to 9-10 mn containers last year. In 2024, the port accounted for 79% of Egypt’s total transshipment trade, a senior official from the port told EnterpriseAM.

It’s business as usual at the port despite regional disruptions: The new expansions allowed the port to continue operating smoothly even as Suez Canal traffic dropped due to tensions in the Red Sea, the source added. The port managed to double trips to and from Saudi Arabia as an alternate route amid disruptions that pushed ships away from the Bab El Mandeb Strait.

East Port Said is drawing new shipping alliances: While some major shipping lines are still considering a return to the Suez Canal, East Port Said has already attracted several new alliances. The current container terminal operated by AP Moller-Maersk is a key transshipment point. The port remains open to accommodating more lines and agreements, the source said, adding that Hapag-Lloyd is in the process of developing an independent terminal that is set to go online at the end of the year or early 2026.

New terminals are set to launch in 2H 2025: Several projects under construction are set to launch in the second half of the year, including a general cargo terminal, a dry bulk terminal, and a ro-ro terminal. The ro-ro terminal will feature a car handling line with an annual capacity of 800k vehicles, potentially attracting global carmakers to the region.

Also in the pipeline: Sky Logistics and Reliance Logistics are working on a multipurposeterminal, which is expected to be operational in 2H 2025. A pilot phase has already handled 6 mn tons of cargo, drawing fully integrated supply chains to the area. The Roots terminal for clean dry bulk is also expected to kick off operations soon.

Sizable investment: Infrastructure development for the new expansions has cost some USD 500 mn, according to the source.

ICYMI- AD Ports Group has recently signed a 50-year renewable usufruct agreement with the SCZone to develop and operate an industrial and logistics zone in East Port Said, with investments that could reach USD 120 mn for the first phase.

To attract investors to the area: The government has introduced several incentives to attract investors, which include customs exemptions, competitive energy prices, five-year residency permits, 5% VAT and customs rate for activity in logistics zones, and 50% corporate tax rebate for five years.

Time is money: The latest development work means that turnaround times at the East Port Said Port have been significantly reduced, leading to time and cost savings for shipping lines and supply chains, the source added.

Your top infrastructure story for the week: Hong Kong-headquartered W Ships is launching a weekly service this month connecting Egyptian ports with key ports in Turkey, India, Greece, Spain, and Saudi Arabia. (Al Mal)

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