Breaking down the agreements signed at TransMEA 2023: Egypt signed multiple agreements with local and international firms on the third day of the ongoing TransMEA 2023 transport expo in Cairo that aim to boost our maritime, logistics and land transport sectors, according to several statements (here, here, here and here). We also inked more agreements to localize manufacturing for our transport sector.

One caveat: Most of the agreements are in the early stages, with economic feasibility studies still ongoing, meaning the exact values of the contracts and how they’ll be financed is still unclear. There’s a chance that some of these may not leave the drawing board.

#1- LOGISTICS

IDG snags Kom Abu Radi dry port contract: Samcrete Group subsidiary Industrial Development Group (IDG) inked an MoU to establish, manage and operate a dry port in Kom Abu Radi, which will serve the area’s fertilizer, cement, and electronics factories, as well as Supply Ministry-affiliated bulk commodity silos. The port will also be connected by railway line to the main railway network.

What’s next: The company will conduct an economic feasibility study in the next four months, after which it will submit a financial bid, and another more detailed technical proposal in 10 months, it said in a statement (pdf).

Orchid + Libyan-Egyptian consortium to operate two new logistics zones:Orchid Kuwaiti Egyptian Company inked an MoU to set up, operate and manage a logistics zone in the Sixth October Industrial Zone, with a period of four months slated for the economic and feasibility studies, after which the company will submit a financial bid, the statement said. A Libyan-Egyptian consortium comprising Al Raeid Engineering Consultants and Al Saed Company also inked an agreement to establish, operate and manage a 400-feddan logistics zone in Al Salloum city on the Libyan border, for which the consortium will conduct a feasibility study in two months.

#2- MARITIME

The Transport Ministry also oversaw a number of agreements signed to help strengthen Egypt’s maritime sector, including a new Egypt-Italy ro-ro line, as well as cooperation agreements for technical capacity building and port management.

A boost for our state-owned maritime firms: Cyprus-based Columbia Shipmanagement and Egypt-based Pan Marine Group inked an MoU that will see the companies work on developing Egypt’s state-owned maritime firms by employing a new cohort of 1.5k workers and financing the construction and acquisition of new vessels, the statement said.

Egypt-Italy shipping line: Egypt also inked an agreement with ship operator DFDS Mediterranean for a weekly ro-ro shipping line for perishables between Egypt’s Damietta Port and Trieste port in Italy to boost trade between the countries. The two countries’ customs authorities also inked an agreement to help facilitate shipping processes for the shipping line, the statement said.

ALSO- The Alexandria Port and the Chinese port of Guangzhou are also partnering up to exchange expertise in port management and smart, green ports.

WATCH THIS SPACE- Omani logistics firm Asyad is eyeing investments in SCZone: Omani state-owned logistics provider Asyad is interested in cooperating on maritime and logistics projects within the Suez Canal Economic Zone, a delegation from the company said on the sidelines of the event.

#3- LAND TRANSPORT

Unified transport card + app coming our way: Italian IT firm Almavivaand Transport Information Technology(TransIT) signed an MoU to implement a unified, cross-platform transport card that can be used for the metro, the light rail transit (LRT), public and private transport buses, the monorail, and the bus rapid transit (BRT) system. The Transport Ministry is also planning to develop an app for various transport services, including public transport, bike sharing and taxis, that allows users to book rides in advance.

Auto loans for land freight players: The National Bank of Egypt signed an agreement to finance car and auto parts purchases for Land Transport Authority-licensed transport companies.

PLUS- Freight brokers could get licenses online: The ministry inked an agreement to issue licenses for land freight brokers online, the statement said, without disclosing details.

AND- The third day saw more agreements to localize transport infrastructure: The National Egyptian Railway Industries Company (NERIC), a joint-venture between the state and the private sector, signed two framework agreements to localize manufacturing during the event.

#1- BRT: NERIC inked an MoU with Chinese companies Hunan CRRC Intelligent Transport Technology, Zhuzhou CRRC Times Electric, and Norinco International Cooperation to localize the manufacturing of rapid transit systems;

#2- Railway equipment: NERIC also inked an agreement with Hungarian firm Ganz Motor and its agent in Egypt, Tahawy Rail, to localize the manufacturing of Ganz spark plugs for railways.

ICYMI: The ministry also inked a slew of agreements on the second day of TransMEA with Chinese, European, and local companies to localize manufacturing in the transport sector and complete key state transport projects like the light-rail transit (LRT), high speed rail (HSR), and the metro expansion. The details:

LIGHT RAIL- The Aviation Industry Corporation of China (AVIC) and China Railway Major Bridge Engineering Group Co. inked a framework agreement to design and construct the 16-km fourth phase of Cairo’s LRT project that will extend the route into Tenth of Ramadan City. AVIC — the main contractor for the LRT project — also signed an MoU for the fifth phase of the project that will reach into the new capital as well as an MoU for an light electric train that will link Al Rehab to the new capital.

HIGH SPEED RAIL- Egypt-focused contractor El Didi Group and the Chinese Railway Group Limited (CREC) inked an MoU for a planned 250-km long high-speed rail line between Port Said and Abu Qir. In addition, a number of local and international companies signed contracts to design, supply, and install the electromechanical systems for the 1.8k km national high-speed rail project, where Orascom Construction, Elsewedy Electric and Arab Contractors secured the contract for the first line running between Ain Sokhna and Marsa Matrouh. Meanwhile, Siemens Mobility, Orascom Construction, and Arab Contractors were tasked with installing the systems for the second Sixth of October-Aswan line and the third Hurghada-Luxor line.

METRO-Orascom Construction inked a contract to build the civil works for the stretch of Metro Line 4 between Giza and Fustat. In addition, a contract was signed with Spain’s Typsa Group to provide consulting services ahead of conducting preliminary studies to extend Metro Line 1 (Helwan to New El Marg) to Shibin El Qanater. Meanwhile, Spain’s Construcciones y Auxiliar de Ferrocarriles (CAF) inked two MoUs: one to extend a previous maintenance and upgrade agreement for 23 trains at Metro Line 1 and the other to implement a similar agreement for 39 trains at Metro Line 2 (El Mounib through Shubra El Kheima).

ALSO- The Egyptian Railway Authority inked a terms and conditions agreement with the Egyptian National Railway Industries Company (NERIC) to assemble 500 rolling stock, along with their maintenance and spare parts, over the span of 15 years. NERIC also linked up with Spain’s CBS Group through its subsidiary GTS to set up a local manufacturing plant for signaling devices.

Your top infrastructure stories for the week:

  • Gas has started flowing in East Damanhour: German oil giant Wintershall Dea has started gas production at its East Damanhour onshore concession.
  • Tunnels authority wants more financing for Cairo Metro Line 4: The National Tunnels Authority (NTA) is looking to secure an EGP 17 bn loan from a consortium of local banks to fund the construction of the Cairo Metro Line 4.
  • Orascom Real Estate (ORE) has secured EGP 6 bn loanto fast-track construction at its O West project in Six October.
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