Egypt is gearing up for the return of ships through the Suez Canal with a USD 1 bn plan to build bunkering stations, two government sources told EnterpriseAM. The plan includes fixed stations along the canal, in addition to floating bunkering barges capable of refueling Suezmax vessels — the largest of vessels that can still make the transit — each of which will be developed in partnership with the private sector, we were told.

But this is just phase one of a wider USD 2 bn project to bring back major shipping lines through the canal — essentially shifting the canal from serving as a toll road to a service station pit stop. Alongside the additional bunkering stations, the plan will include providing new maintenance services, logistics services, and services to transiting crews.

Helping push vessels to refuel in Egypt will require a competitive price point, with a government committee currently in talks with interested companies on the matter to see how they can provide a more attractive price than other refueling points on the global trade map.

ICYMI- The Oil Ministry and the Suez Canal Authority (SCA) signed an MoU to develop a liquefied natural gas (LNG) station in Port Said earlier this week. The station will liquefy, store, and supply LNG to canal tugboats and ferries, replacing conventional fuels.

In numbers: With some 36.8% of vessels currently on order being LNG-ready, the demand for LNG bunkering could hit as much as 40 mn tons of oil equivalent (mtoe) by 2030, according to DNV’s Maritime Forecast 2050.

MORE FROM EGYPT-

#1- Construction player Concrete Plus plans to implement USD 1 bn-worth of infrastructure projects in Uganda and Tanzania next year, Executive Director Rehab Younes told Asharq Business. The company has plans to develop road projects in Uganda and railway projects in Tanzania as part of its regional expansion strategy.

REMEMBER- Egypt’s been eyeing pieces of Africa’s logistics sector — previously mulling plans to set up sixlogistics centers for its products in several African countries.The plans also included positioning Morocco as a key hub for Egyptian exports into Africa. The Egyptian government is also planning to invest EGP 6 bn (c. USD 124 mn) for the first phase of a new road project connecting Egypt to Libya and Chad.

#2- China’s Winpex will set up a USD 15 mn factory for the production of solar lights, LED lights, and electronics under an agreement with industrial developer Main Development Company (MDC), according to a statement from the Suez Canal Economic Zone. The project, which will be hosted on MDC’s site near the Sokhna Port, is slated to create 500 direct jobs and will export the entirety of its production.

Tags: