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Egypt signs $1.6 billion deals for Sokhna & Dekheila ports

The consortium includes Hong Kong-based Hutchison Ports, French company CMA CGM, and Chinese state-owned COSCO Shipping.
16.03.23 | Source: Ahram Online

The General Authority for the Suez Canal Economic Zone (SCZone) signed the agreement on development and management of the container terminal of Sokhna Port on the Red Sea with the consortium of Hong Kong-based Hutchison Ports, French container transportation and shipping company CMA CGM, and Chinese state-owned COSCO Shipping.

Meanwhile, the agreement to implement the second project in Dekheila Port on the Mediterranean was signed by the General Authority of Alexandria Port and the consortium of Hutchison Ports and the Geneva-based Mediterranean Shipping Company (MSC).

The two projects serve as an “important step” toward establishing a comprehensive logistical container axis between the two ports, which would link the Red Sea with the Mediterranean, the Cabinet cited Minister of Transport Kamel El-Wazir as saying today.

The planned axis would be the largest logistical corridor to serve global trade between the east and the west and would secure more than 2,000 direct and indirect job opportunities, El-Wazir said.

The logistical axis will make use of the country’s high-speed electric train in transporting containers and will link areas of production and consumption, logistical centres and dry ports, the minister explained.

Moreover, the axis will use the two terminals of Sokhna and Dekheila ports as gateways to provide integrated supply chains that serve global trade, he added.

Prime Minister Mostafa Madbouly attended the signing of the two agreements, affirming that the state attaches great importance to developing the Egyptian ports.

Hutchison Ports initialed the concession agreements with the Egyptian government to operate the world-class container terminals at the two ports in August last year.

At the time, the company said the projects will boost its investments in Egypt to more than $1.5 billion.

Over the past years, Egypt, which has 17 commercial ports, has embarked on a comprehensive scheme to upgrade its sea ports to boost trade and secure new markets for exports.