Tuesday 08, May 2018 by Jessica Combes

DP World signs MoU to develop trade infrastructure

 

DP World, Egypt’s Holding Company for Maritime and Land Transport and the Suez Canal Authority have agreed to partner to develop a new Inland Container Depot (ICD)

Following a bid for the government contract for the project later this year, the depot will be established in Egypt’s 6th of October City, a satellite town in the Giza Governorate and part of the urban area of Cairo.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. 

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said that developing trade infrastructure to improve hinterland access for goods bound for Africa’s growing economic needs is essential, and this is aligned with the UAE leadership’s directive to share with neighbouring nations the global experiences that the country has gained over the years. “We are proud to support the Egyptian government’s drive for economic growth, led by President Abdel Fattah el-Sisi and 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.”

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 per cent of its shares and DP World holding the remaining 49 per cent.

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.

“This is a constructive step toward realising the strategy of the Egyptian government in developing its marine and dry ports infrastructure. 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. We are achieving this in part today by partnering with DP World and the Holding Company of Maritime and Land Transport, who both enjoy the experience and ability to manage ports in a way that serves the Egyptian economy and ensures prosperity for the people of Egypt and the UAE,” said Suez Canal Economic Zone Chairman Admiral Mohab Mamish, speaking about the MoU.

 

Features & Analyses