{"id":588640,"date":"2023-06-14T00:00:00","date_gmt":"2023-06-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypts-plans-to-up-its-logistical-infrastructure-and-reel-in-more-transit-trade\/"},"modified":"2023-06-14T00:00:00","modified_gmt":"2023-06-14T00:00:00","slug":"egypts-plans-to-up-its-logistical-infrastructure-and-reel-in-more-transit-trade","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypts-plans-to-up-its-logistical-infrastructure-and-reel-in-more-transit-trade\/","title":{"rendered":"Egypt\u2019s plans to up its logistical infrastructure and reel in more transit trade"},"content":{"rendered":"

<\/span>How Egypt is positioning itself to become a global logistical transit hub:<\/span> Egyptian ports<\/span> are moving towards improved competitiveness on a global level, with increased efficiency and more streamlined procedures, as we noted in <\/span>last week\u2019s Hardhat<\/a><\/span>. Port Said Port secured the 10th spot out of 348 ports worldwide in the World Bank and S&P Global\u2019s Container Port Performance Index. The government is working on a broader strategy to develop our logistical infrastructure, including major ports across the country, according to a document Enterprise has seen. <\/span><\/p>\n

The maritime industry and our ports are getting a major infrastructure boost<\/span>, Supreme<\/span> Council of Ports member Mohamed El Moselhy told Enterprise, pointing to recent projects such as the recent inauguration of the Tahya Misr multi-purpose terminal at the Alexandria Port as being one key potential window to boost traffic and throughput in our ports. Development work at the Alexandria Port \u2014 including adding more storage capacity and a multi-storey car garage could collectively add 1.5 mn TEU to our annual throughput capacity, the document indicates. <\/span><\/p>\n

There are clear openings for the private sector to get in on the development:<\/span> There are 18<\/span> commercial ports in the country, with 3k km of shorelines. The government is working on a plan to develop Egyptian ports, with 80 projects in the pipeline that are expected to cost a combined EGP 129 bn, according to the document. These projects are being implemented through partnerships with some 100 private companies, some of which have also set up their own partnerships with international consortiums. <\/span><\/p>\n

The ultimate goal: Push our income from transit trade to surpass tourism receipts.<\/span> The<\/span> strategy aims to set up partnerships with major port operating and management companies and shipping lines to bring as much shipping traffic into our ports as possible, according to the document. These partnerships would also be designed to expand the operating capacity of our ports. <\/span><\/p>\n

By the numbers:<\/span> Egypt is looking to bring its container port throughput to 15 mn TEU<\/span> by 2030, and to surpass 25 mn TEU by 2050, according to the document.<\/span><\/p>\n

A rundown of the long-term strategic partnerships that will help us reach our targets:<\/span> The<\/span> Madbouly government signed <\/span>in March<\/a><\/span> two agreements worth USD 1.6 bn with two Hutchison Ports-led consortiums to develop new container terminals at Ain Sokhna and Dekheila ports, with the companies set to operate and maintain the terminals for 30 years. These two development projects will increase the terminals\u2019 capacity by a combined 4 mn TEUs. AP Moller-Maersk is also working on a <\/span>USD 500 mn expansion<\/a><\/span> of East Port Said port that is expected to raise its capacity by 40% to 7.4 mn TEU. Hapag-Lloyd is part of another consortium that <\/span>signed an agreement last year<\/a><\/span> to invest another USD 500 mn to build a new container terminal at Damietta Port.<\/span><\/p>\n

The shipping line operators that Egypt has already set up partnerships with or is looking<\/span> to sign agreements with account for a combined 70% of the global container ship fleet<\/span>, which operate some 25% of global shipping traffic around the world, the document says. These partnerships have netted us some USD 3 bn in foreign direct investment, the document says, without specifying the timeline of these investments coming in. <\/span><\/p>\n

There\u2019s also work underway to focus on other infrastructural components of our<\/span> maritime industry<\/span>, with plans to increase the depth of our waterways by doing further dredging work to improve ships\u2019 maneuverability while passing through, according to the document. More dredging work on the Suez Canal was a primary focal point after the 400-meter-long Ever Given spent six days lodged in the canal back in 2021, causing major disruptions to the waterway and global trade, we noted in a <\/span>previous edition o<\/a><\/span>f Hardhat.<\/a><\/span><\/p>\n

Port development to serve industry:<\/span> Part of the priority areas of the logistical infrastructure<\/span> plan is improving the transport network and routes between ports and industrial cities to ensure faster and easier movement of raw materials, goods, and labor. This entails developing river transport routes, road infrastructure, and the country\u2019s railway network. This development process is meant to help Egypt become more integrated in the global logistics network and supply chains, by creating a more robust trade and transport network infrastructure, the document says. <\/span><\/p>\n

We need to push digitization in the logistics space:<\/span> The logistics sector is one that\u2019s ripe for<\/span> digitization, and that digitization push would be a boon for Egypt\u2019s goals of assuming a pole position in the global logistics network, Secretary-General of the Chamber of International Transport and Logistics Amr El Samadony told Enterprise. Our logistics sector needs to be outfitted with new technology to help improve efficiency and contribute to bringing in more traffic through our ports, he said.<\/span><\/p>\n

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Y<\/span>our top infrastructure stories for the week:<\/span><\/p>\n