The Arab Republic of Egypt is set to launch the largest logistics project in the Middle East and Africa after the country’s Transport Ministry, signed a Memorandum of Understanding (MoU) with major European companies in the field of handling container terminals, dry ports and logistics for the implementation of project.
Kamel al-Wazir, the Minister for Transport said that the MoU is for cooperation on a business model for the project to achieve economic development at the Damietta Port and the surrounding area, which consequently will make other Egyptian ports more competitive.
Features of the project
The first phase of the project features construction of a container terminal, a railway line, a dry port and a cargo distribution area, all at a total cost of US $832m.
Furthermore, an integrated logistic corridor that includes a container terminal will be established and linked to a dry port in al-Dhuhair area through a railway line. This corridor, according to the transport minister, will serve ports of the Eastern branch of the Suez Canal and those alongside the Mediterranean Sea.
“This will result to under reliance and reduction of pressure on road transport system,” explained al-Wazir.
Expectations for the project
Upon completion, the project is expected to make the port a fulcrum point in the Eastern Mediterranean region and to open new foreign markets through the operation of direct shipping services to the port in question and increased competitiveness with countries making similar industrial products.
The transport minister pointed out that the project will also contribute to the asset industry of the country by creating an attractive logistics environment that will bring about foreign direct investments.
The execution of the project is set to commence as soon as the feasibility study and the proposed business model is complete, within the next four months. The entire project will be complete by the end of 2022.