Agility invests in DP World-backed Suez Canal Economic Zone
Kuwaiti logistics giant Agility has announced they are investing in Egypt’s Suez Canal Economic Zone with a new logistics hub in East Port Said.
The hub’s logistics infrastructure will provide better facilities for the import and warehousing of raw materials, and for the export and distribution of intermediate and final goods through the Suez Canal Ports, a statement said.
“Egypt’s prominent location allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub,” said Tarek Sultan, vice chairman and CEO of Agility.
“Being present in the Suez Canal Economic Zone and, in particular, working in the East Port Said area will give companies access to world-class infrastructure as well as fast, easy and efficient logistics and customs services in terms of time and cost,” he added.
Agility will also provide solutions for Egyptian customs, including the modernisation and automation of the customs processes.
The move is aimed at improving the speed at which commodities are moved and strengthen the supply chain. The improvements will also help decrease supply chain costs for the industrial operations across the various areas of the economic zone.
“The establishment of the East Port Said project is in line with the Egypt 2030 Vision,” said Admiral Mohab Mamish, chairman of the Suez Canal Authority and chairman of the Suez Canal Economic Zone.
“It also achieves Egypt’s development goals in creating an integrated sustainable economic growth through the creation of new job opportunities and enhancing Suez Canal Zone status as a commercial and industrial hub.”
The agreement also includes studying the possibility of establishing a company between the Suez Canal Economic Authority and Agility.
These various plans will be implemented in stages. In the first eight months, feasibility studies will be done to develop the logistics centre and the provision of customs technology services.
The second phase includes the preparation of the detailed master plan for the logistics centre and technical and financial studies to provide technology services for a period of six months.
The third phase will include the establishment of the joint company in six months.
Spanning 461 sqkm, the overall Suez Canal Zone, backed by DP World, consists of two integrated areas, two development areas and four ports.
In August last year, Egypt’s Minister of Investment Sahar Nasr said that the Suez Canal Zone is hoping to attract nearly $30bn in foreign direct investment for its infrastructure and logistics hubs within five years.
The ministry is also hoping that the freezone will lead to the creation of thousands of jobs to boost the economy.