DP World expands Egypt logistics commitment with inland port
DP World has signed an MoU with Egypt’s Holding Company for Maritime and Land Transport and the Suez Canal Authority for the development of a new Inland Container Depot (ICD) in Egypt’s 6th of October City, a satellite town in the Giza Governorate and part of the urban area of Cairo.
The three partners will bid for the government contract for the project later this year.
The proposed ICD will increase the flow of cargo between ships and major land transportation networks in the country, creating a central distribution point. Under the MoU, DP World will lead and represent the alliance in the bidding process and become the ICD operator if the tender is won.
This initiative in addition to DP World’s proposed plans for a freezone at the mouth of the Suez Canal.
“Developing trade infrastructure to improve hinterland access for goods bound for Africa’s growing economic needs is essential. This collaboration builds on our strategic partnership with Egypt and we look forward to working with the SCZone and the government’s Holding Company for Maritime and Land Transport to make it happen,” said DP World group chairman and CEO Sultan Ahmed Bin Sulayem.
“The collaboration further builds on our historical ties with the country where we have been operating Sokhna Port for 10 years and have become an integral part of the social and economic fabric,” he added.
“This is a constructive step toward realising the strategy of the Egyptian government in developing its marine and dry ports infrastructure,” said Suez Canal Economic Zone chairman Admiral Mohab Mamish. “It follows the expected future growth of global trade, and the directives of the country’s political leadership in preparing Egypt’s ports to keep pace with changing global trends.”
“The project will serve trade in Egypt by linking inland and marine ports, like in Alexandria where the Holding Company is present through its affiliate, the Alexandria Container and Cargo Handling Company,” said Holding Company of Maritime and Land Transport chairman Rear Admiral Mohamed Ahmad Ibrahim Youssef.
DP World signed a partnership agreement with SCZone last year to develop an integrated Special Economic Zone (SEZ) in Ain Sokhna, in Egypt. It stated that a developmental company would be established with SCZone holding 51% of its shares and DP World holding the remaining 49%.
Aligned with Egyptian government’s strategy to develop the Suez Canal passage and the new administrative capital, the SEZ aims to establish a flagship sustainable industrial zone that will attract foreign investment.
It will also create a legacy for future generations supporting the growth of small and medium businesses, while creating jobs for Egyptian youth, which will reflect positively on the country’s GDP, encourage economic growth and prosperity for its people.