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Maersk’s expansion of Egypt’s East Port Said port may get IFC backing: The International Finance Corporation (IFC) is considering providing a loan of up to USD 175 mn to help the Suez Canal Container Terminal (SCCT) expand its existing container terminal at East Port Said port, the lender said on its website. The multilateral lender is expected to decide on the loan by 30 October.
Also included, an interest rate hedge: The IFC will also provide the SCCT with risk management products in the form of interest rate swaps with a loan-equivalent exposure of approximately USD 2 mn, the lender said.
ICYMI- This is part of Maersk’s expansion plans for the port: The Maersk-owned company is embarking on a USD 500 mn expansion of the East Port Said port that is expected to raise its capacity by 40%. The SCCT signed a contract with Egypt’s Suez Canal Economic Zone in November that will put it in charge of building and operating a second container terminal at the port, as well as taking on responsibility for securing financing for the project. The IFC puts the cost of the project at USD 489 mn, of which 64% will be financed by internally generated cash flows and 36% via debt.
Refresher: The SCCT wants to expand the capacity of its existing 2.4k-meter container berth by 2.1 mn TEU to allow an annual capacity of 6.6 mn TEUs. This will significantly boost the port’s current capacity, access to port services, and operational efficiency. Expansion of the terminal could kick off at the end of this year, with its initial operations commencing in 2H 2025.
This isn’t the only loan the IFC is handing Egypt for a port: The IFC is also expected to greenlight a USD 125 mn loan for the construction of a second container terminal at Egypt’s Damietta Port on 30 October. The USD 665 mn expansion is led by a consortium of European companies that includes Hapag-Lloyd, Eurogate Terminals, and Contship Italia. The consortium inked an agreement with Damietta Port Authority last year to develop the terminal under a 30-year build-operate-transfer framework.
