Egypt is earmarking EGP 8 bn to develop Damietta Port ahead of opening up the dock to international management tenders and a future public offering, a government official tells EnterpriseAM. A EGP 6 bn new grain and bulk commodities terminal and a EGP 2 bn, 2.5 mn sqm multipurpose terminal under the name Tahya Misr 2 will be built by the Suez Canal Authority’s Harbor and Great Projects Company, while the second phase of the logistics zone at the port will be built by the Holding Company for Roads, Bridges, and Land Transport Projects, we were told.

Why it matters

By fronting the money for the two developments, the government is de-risking the projects for global port giants (like DP World or AD Ports) that are increasingly hesitant to take on greenfield construction risks in the current macro environment. This approach to building up state assets and cleaning up balance sheets before a sale or inviting the private sector to take on management to get a better price is illustrative of the state’s broader approach to divestment.

The two new projects will scale the port’s goods circulation to 20 mn tons annually — positioning Damietta as a more formidable competitor between Alexandria and Port Said. The Damietta expansion is one piece of a broader ministry strategy to hit an annual capacity of 400 mn tons across all national ports and boost container handling to 40 mn TEUs. The plan involves building a 36-vessel domestic merchant fleet by 2030.

The bigger picture for Egyptian maritime: Egypt is doubling down on infrastructure to capture more of the Mediterranean’s transshipment and basic commodity trade, even as it looks to launch new shipping lines to East and West Africa. The government plans to facilitate the launch of new shipping lines to boost connectivity for East and West African countries –– in an effort to propel regional and continental maritime trade links.

What’s next?

Once the development work is complete, international alliances will be invited to participate in a global tender for the management and operation of the newly developed terminals, the government official tells us.

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