Egypt greenlights Alstom’s rail manufacturing complex project as a ‘private freezone’

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What we're tracking today

TODAY: Egypt greenlights rail production project + Bahrain secures loan for road development

Good morning, folks. The news cycle slowdown continues. In today’s issue, we have updates on rail production and road projects from Egypt and Bahrain, as well as the latest on Egypt’s efforts to adapt to the incoming changes in global trade. But first, more on Trump’s ever-developing tariff moves…

THE BIG LOGISTICS STORY- Trump confirmed a new 25% “secondary tariff” on any country purchasing oil or gas from Venezuela, which will also take effect on 2 April, the US President said on his social media platform Truth. The US, however, remains an importer of Venezuelan oil, accounting for about 4.3% of its imported crude in January. China, Spain, Russia, India, Singapore, and Veitnam are some of the top candidates to be hit with this tariff.

US tariffs on auto imports are also incoming: US President Donald Trump said auto tariffs will land “in the next few days,” with additional duties on pharma, lumber, and semiconductors set to follow “down the road.” Speaking to reporters at the White House yesterday, Trump said many of these levies would take effect on 2 April, which he framed as a “Liberation Day” for the US economy. However, some duties would be phased in later, and some allies could receive exemptions.

Markets reax: Wall Street closed higher on Monday on hopes that Trump’s long-threatened tariff package may end up being narrower in scope than initially feared. The S&P 500 gained nearly 1.8%, hitting a two-week high. But one White House official told Reuters that people “should not expect a reprieve,” saying the president is still “determined to implement reciprocal tariffs that are very strong.”

WATCH THIS SPACE-

#1- Iraq is in talks with several firms to secure two floating storage regasification units (FSRU) by early June, Bloomberg reports. The FSRUs will carry and convert LNG to gas and will be installed near the Khor al-Zubair Gulf port in Basra. Iraq has also launched a tender for a fixed regasification platform in the Grand Faw port in the south.

In context: Iraq has been working to limit its energy imports — electricity and natural gas — from Iran in response to US pressure and ramping up efforts to prep its natural gas supply chain infrastructure to accommodate for increased inflows from alternative sources, such as Oman and Qatar. This includes plans for installing two offshore LNG facilities, with one facility planned to receive imported LNG to run the power stations in southern Iraq near the Grand Faw Port and the other slated for Khor Al-Zubair port near the oil hub in Basra.

#2- Egypt makes headway on West Delta Deep Marine project: UK-based oil and gas giant Shell — in collaboration with its partners — is working to accelerate gas production from the 11th phase of the West Delta Deep Marine field in a bid to boost the nation’s natural gas output, according to a statement. The new phase will include drilling three wells with a projected production of 150 mn cubic feet per day (cf/d). Initial production from this phase is scheduled to start in June.

The company also wrapped its 10th phase in early January, which included three wells with 160 mn cf/d production capacity, according to the statement. The new wells added in 2025 are set to increase the field’s production rates to 320 mn cf/d this year, up from 222 mn cf/d in 2024, chairman of Rashid Petroleum Company Mohamed Samir said.

ICYMI: Shell is investing some USD 300 mn alongside Petronas in its ongoing drilling operations in the West Delta Deep Marine concession as part of its 11th phase. Shell started production from one well in the West Delta Deep Marine in October, producing 30-40 mn cf/d.

REMEMBER- Egypt is working to become a net LNG exporter once again, with a plan to become a hub for the regasification and export of Cypriot gas. The country also hopes that new natural gas discoveries and wells could help it reverse its dependence on imported gas by next year. Egypt reportedly needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes 4.4 bcf/d.

#3- The Gulf Mercantile Exchange (GME) has launched trading on its Alternative Crude Ecosystem (ACE), Wam reports. The first sale saw 500 contracts of Oman Crude Oil sold for May 2025 delivery.

What’s ACE? The bilateral trading platform allows participants to trade multiple crude grades as differentials against the GME Oman sour crude futures benchmark. These include Oman, Al Shaheen, Basrah Medium, Basrah Heavy, Dubai, Murban, and Upper Zakum.

ICYMI- GME logged a 12% increase in 2024 trading volume with 1.3 mn contracts. Meanwhile, front-month contract volume grew 20% y-o-y during the year to a record 959.6k.

MARKET WATCH-

#1- Oil prices saw very limited movement this morning amid uncertainty over the possible impact of Trump’s floated secondary tariffs on importers of Venezuelan oil, Reuters reports. Brent crude futures gained USD 0.01 to USD 73.01 a barrel, while the US West Texas Intermediate (WTI) decreased by USD 0.01 to USD 69.10 a barrel by 04.24 GMT.

#2- Baltic index on an upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — grew 0.6% 1,652 points on Monday. The capesize was up 0.5% to 2,690 points, while the panamax index gained 1% to reach 1,389. Only the smaller supramax index rose to 1,013 points — almost a four-month high.

DATA POINT-

Oman’s seaports recorded OMR 16.5 bn in trade in FY 2024, accounting for 77% of the country’s total foreign trade, according to a statement. Omani ports saw their general, bulk, and liquid cargo volumes rise 15% y-o-y to 137 mn tons, while the number of docked ships at ports saw a 1.5% y-o-y jump to 12k vessels.

The breakdown: Sohar Port saw a 72% boost in the volume of goods processed, handling around 942k TEUs. Salalah Port saw a 10% jump across the general, liquid, and bulk categories, with some 3.3 mn TEUs handled. Suwaiq also recorded a 10% climb across the board, while Duqm Port saw a 152% spike in cargo handling across all categories.

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CIRCLE YOUR CALENDAR-

The UAE will host the Gulf Ship Finance Forum on Thursday, 10 April in Dubai. The forum will host shipping and finance executives from around the region and the world to host presentations, interviews, and panel discussions on ownership, management, chartering, legal, and trading in shipping.

The UAE will host the CargoIS Forum on Monday, 14 April in Dubai. The event will discuss industry insights and strategies from leading logistics players, including Emirates SkyCargo and Lufthansa Cargo.

The UAE will host the IATA World Cargo Symposium from Tuesday, 15 April to Thursday, 17 April in Dubai. The event will host sessions, specialized streams, workshops, and summits related to technology, security, customs, cargo operations, and sustainability for over 1.4k industry leaders.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

Egypt greenlights Alstom’s railway manufacturing complex project with a ‘private freezone’ designation

Egyptian Gov’t greenlights Alstom’s Borg El Arab railway manufacturing complex freezone plans: Egypt’s ministerial group for industrial development approved French rolling stock company Alstom’s EUR 80 mn railway manufacturing complex project in Alexandria’s Borg El Arab’s logistics and industrial zone, according to a cabinet statement. The approval also grants the project the ‘private freezone’ designation.

This is the first time we hear about the project’s private freezone designation, which is granted to strategic projects on a case-by-case basis, usually when the project’s economic feasibility is dependent on establishing it in a specific location outside public freezones, according to a publication by the General Authority for Freezones and Investments.

About private freezones: Current regulations require private freezone projects to export at least 80% of the production, with the possibility of exceptions for projects with “special strategic importance.” They also require that local components account for 30% of the production. Earlier in October, it was reported that Egypt is preparing amendments to the regulation that would raise the exports and local components requirements to 100% and 70%, respectively.

What we know so far about the project: The under-construction project will initially include building two factories over an area of 40k feddans (c. 41.5k acres) to manufacture components for Cairo Metro Line 6 and cables. Production is planned to begin in 1Q 2027.

ICYMI- Rowad Modern Engineering was awarded the contract to construct one of the factories planned for the railway manufacturing complex in Egypt last week. Rowad already kicked off construction work of the plant, with plans to wrap it up in no longer than two years. The tender for the main manufacturing factory has not been issued by Alstom yet, an insider source with knowledge of the matter told us then. Production will be earmarked for both local use and exports to markets in the Middle East and Africa.

Bahrain secures KWD 10 mn from KFAED for road development

KFAED backs Bahraini road expansion: The Kuwait Fund for Arab Economic Development (KFAED) has inked a KWD 10 mn (c. USD 32.4 mn) loan agreement with the Bahraini government to finance the second phase of Manama’s Sheikh Jaber Al Ahmad Al Sabah Avenue, KUNA reports. The 20-year loan covers a fraction of the project’s total cost — estimated at roughly KWD 152 mn (C. USD 404 mn) — and is priced at a 3% interest rate with an eight-year grace period at 24 semi-annual installments.

Where’s the money going? The funds will contribute to expanding the avenue — which connects Manama to the neighboring Southern Governorate — from three to four lanes over 11 km, as well as constructing five bridges at different intersections. The project will also widen the adjoining Salman Al Fatih Street, increasing the number of lanes to four with a length of about 2 km.

The impact: The expansion will serve commercial, residential, and industrial areas as well as cut emissions by reducing congestion.

KFAED’s latest in the region: KFAED signed off on a KWD 10 mn (c. USD 32 mn) loan to refurbish and upgrade a railway for transporting phosphate in Tunisia last November. The project is forecasted to be completed in 1H 2028.

Egyptian gov’t forms new committee designed to adapt to the incoming trade war, protect local industry

The Egyptian government has formed a committee to conduct a comprehensive review of Egypt’s customs regime in order to adapt to recent global developments on tariffs and trade — particularly the tariffs imposed by some countries in response to US tariffs, a senior government official told EnterpriseAM.

ICYMI: US President Donald Trump announced plans for a new wave of tariffs last month that will see the country hit auto, semiconductor, and pharma imports with 25% duties. Trump aides are reportedly preparing to roll out a tariff regime that would impose tariffs on “goods from most countries that trade with the United States” next month. The new tariffs would hit imports worth multi-tns, with one proposal suggesting grouping the US trading partners into three tariff rate categories — low, medium, or high.

"Anyone who thinks we’re completely safe from the effects of these tariffs is mistaken, as they will indirectly impact Egypt. Therefore, we are assessing the relative weight of goods whose customs fees have increased," our source said.

The committee is designed to help protect local manufacturing: The government’s review of customs tariffs is also set to entail an effort to address customs and tariffs harming local industry, which will be done by reducing tariffs on select items in order to attract private investment in productive sectors, the source said. This would, in turn, help achieve the necessary balance between taxes imposed on finished and intermediate goods, as well as the raw materials used in their production.

Localization efforts come first: The review will take into account Egypt’s commitment to international agreements and the standards of the World Customs Organization standards, but will do so without compromising the country’s localization strategy, taking into account feedback from the Federation of Egyptian Industries and local manufacturers to protect local industry and maintain employment levels, the source said.

Additional amendments to Egypt’s customs law are set to be introduced: Five articles of the current customs law could be amended via new legislation that addresses issues such as dispute resolution, waiving fines, and issues related to the retention of import invoices for post-clearance reviews. These amendments aim to help support the industrial sector and reduce any new potential disputes.

The effects of customs facilitations have been specifically felt in the auto sector: Tariff reductions, regulatory reforms, and incentives for local production have led to the entry of seven new companies into the local auto market, with two more working on meeting the necessary regulatory requirements to follow suit.

More facilitations could be on their way: A new package of customs facilitation measures are set to be launched immediately following the Eid El Fitr vacation, the source said. Three committees have been formed and tasked with resolving customs disputes, while technical and judicial experts have been recruited to expedite the resolution of these issues.

THE GOALS FOR THE GOVERNMENT-

Reducing clearance time is among the most urgent goals for the gov’t: Egypt aims to initially cut the customs clearance time for goods from eight days to just two — a measure that is expected to take between nine months to a year to fully implement. After that, the government aims to cut clearance time to just a few hours.

Expanding the so-called “white list” is another: The authorities are working to add companies and customs clients without any history of smuggling or customs value manipulation to include them on its “white list,” which currently includes a limited number of entities but is expected to grow significantly once the assessment is complete. Those on the list will receive special benefits regarding customs clearance and inspections, helping support local investments for those with a clear record. Meanwhile, the government is set to implement stricter measures against any smuggling attempts using a “more robust risk management system designed to close loopholes,” the source said.

The Finance Ministry aims to collect some EGP 74 bn in customs duties for the current fiscal year — a figure that may grow faster with the resolution of disputes and the simplification of procedures, the source concluded.

Shipping updates from UAE

SHIPPING + MARITIME-

#1- LNG-powered vessel lands at Noatum Maritime: AD Ports subsidiary Noatum Maritime received its first LNG-powered RoRo vessel, according to a statement. The newbuild pure car and truck carrier — named Ugr Al Samha — spans 59.3k sqm, boasts 12 decks, and has a carrying capacity of over 7k CEUs. The new vessel is set to be deployed by Noatum Maritime’s joint venture with Turkish shipping firm Erkport Untied Global.

The rationale: The move looks to boost operational efficiency by cutting emissions compared to traditional fuel, as well as capping costs due to reduced maintenance costs. The transition to LNG is in line with the firm’s broader fleet expansion plan and with the UAE’s goal of achieving net zero emissions by 2050.

#2- Drydocks World tapped for Ivory Coast project: DP World marine and ship repair services subsidiary Drydocks World has been awarded a contract for the refurbishment and life-extension of offshore energy firm Modec Management Services’ Ivory Coast offshore vessel — dubbed FPSO Baobab Ivoirien, according to a statement. The eight-month project — slated to commence in May — will feature extensive structural enhancements on the floating production storage and offloading vessel. The project aims to expand the vessels’ lifespan by some 15 years, including a 1k tonnes of steel renewal, 250k sqm of tank coating, and 11.5k m of new piping.

A key player: The vessel has a processing capacity of 70k bpd of oil and 75 mn cf/d of natural gas — standing out as a key player in West Africa’s offshore energy production. It could also inject 100k bpd of water and store up to 2 mn barrels of crude oil.

TRADE-

Egyptian steel producer El Marakby Steel has launched a USD 30 mn, three-year plan to ramp up its exports, Chairman Hassan Elmarakby told Al Arabiya. The strategy kicked off in 2024 and will see the company expand its product range and upgrade its steel grades through a USD 10 mn investment, in addition to building a solar power station to feed its factory at an estimated cost of USD 20 mn. The steel maker aims to record USD 120 mn in exports this year, up 10-15% y-o-y, the chairman said.

OTHER STORIES WORTH KNOWING THIS MORNING-

Egypt’s SCZone goes digital: The Suez Canal Economic Zone (SCZone) has launched the first phase of a new digital services platform for investors, offering them the chance to turn in applications and receive project approvals and licenses through a single platform. The platform — developed with the EBRD’s support — will feature more services in the phases that follow. (Statement)

LNG has taken over Europe’s energy supply, OAPEC Sec-Gen says

The shifting tides of LNG trade: LNG has swooped in to replace Russian natural gas as Europe’s top imported fuel, with boosted imports from the US, Qatar, Algeria, and Nigeria, Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Essa Al Loughani told Attaqa. The intensive deployment of floating regasification terminals has enabled this change, transforming Europe from a balanced market to a demand center, Al Loughani added.

Doha and Washington are top LNG players: Qatar’s North Field project is expected to raise the nation’s LNG output from 77 mn tons to 142 mn tons annually by 2030, Al Loughani said. The US led LNG output in 2023 and is set to double its export capacity by 2028 if planned construction efforts go through, Al Loughani said.

ICYMI: Although the EU is no longer the top importer of Russian oil and natural gas — replaced by China and India — it has decided not to ban Russian gas imports after some member states raised concerns about securing alternatives.

Future outlook: Forecasts estimate growth in LNG demand across the board, with Asia leading in consumption in the medium and long term, Al Loughani said.

Trump’s proposed levies on China-made vessels unsettle global shipping

Shippers brace for US levies on Chinese vessels: A round of tariffs proposed by the Trump administration on China-built and China-flagged vessels could cause a USD 1 to USD 3 mn surcharge for shipments on specific transatlantic routes, Bloomberg reports. The proposed levies — comprising docking fees — could potentially double or triple the cost for US-bound shipments of steel pipes from Germany.

Chinese state-owned shipping giant Cosco Shipping might feel the blow, as the levies may dampen demand for its services, Reuters reports. Costs for transpacific routes are predicted to surge up to 15%, which Cosco Shipping must either incur or pass onto customers.

Why this matters: More than half of the world’s cargo ships are China-made as of 2023, a 5% jump from its 1999 share, according to a report (pdf) by the United States Trade Representative’s (USTR). Chinese ownership of cargo ships is over 19% as of January 2024, whereas US-made vessels accounted for 0.01% of the global share in 2024.

Calendar

MARCH

24-25 March (Monday-Tuesday): Airbus Summit, Toulouse, France.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

10 April (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East Exhibition and Conference, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

16-17 April: Global Ports Forum, Dubai, UAE.

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

OCTOBER

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

EVENTS WITH NO SET DATE

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase two of Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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