Egypt's ambitious port development projects pave the way for enhanced trade capacities and international investments, positioning Egypt as a key player in the global maritime industry.
Egypt's transformative port initiatives strengthen logistics capabilities, attract foreign investments, and position Egypt as a strategic hub for international trade — Photo illustrated by Business Today Egypt
In line with President Abdel Fattah el-Sisi's directives, Egypt aims to leverage its unique geographic position on the Red Sea and the Mediterranean to become a global trade and logistics center. The government's vision focuses on transforming Egyptian ports into efficient, multifunctional gateways through a series of projects funded solely by Egyptian capital.
The Ministry of Transport has devised a short- and medium-term plan (2024-2030) to enhance the relative advantages of Egyptian ports, revamp their infrastructure, and attract private domestic and international partnerships.
The immediate phase of the plan, aimed at quick intervention, emphasizes improving port operations and extending their hinterlands. Key initiatives include enhancing connectivity with major industrial cities, transportation networks, and urban clusters to ensure seamless movement of labor, raw materials, and products.
This entails developing railway and road networks, riverine navigation passages, and relevant legislation. Additionally, the plan focuses on increasing the capacity of major ports by improving working environments, customs systems, inspection processes, and infrastructure, including deepening and enhancing navigation channels.
The addition of new tugs with a capacity of up to 70 tons will expedite and secure vessel maneuvering. The digital transformation of existing stations and their administrative restructuring will be implemented using modern, sophisticated operating systems.
The plan includes urgent measures to add advanced capacity, such as the construction of the multipurpose Taha Misr Station on berths 55-62 and the Timber and Grains Station on berth 85/3. The addition of new storage yards and a multi-story garage will increase the collective capacity of these projects to handle over 1.5 million TEUs annually, approximately 10 million tons of general cargo per year, and more than 200,000 vehicles annually.
These projects are expected to account for over 50% of the current trade volume at the Alexandria and Dekheila ports combined.
These developments build upon President Sisi's September 2021 visit to the Port of Alexandria, where he laid the foundation stone for the Taha Misr Station.
The President's vision aims to maximize Egypt's strategic location and transform it into a global trade engine, boosting both national and regional economies.
The government's commitment to utilizing Egyptian resources and attracting private investment fosters optimism for sustained economic growth and increased international trade opportunities.
In line with the directives of the Egyptian president, in March 2023 to present a report and study on the possibility of surpassing transit trade revenues over tourism revenues, the flexible plan of the Ministry of Transportation has been redesigned to expand the Egyptian logistics services sector for integration into global supply chains.
This expansion relies on direct and indirect transit trade and re-exportation, transforming Egypt into a major distribution center for the Middle East, Gulf, and Africa.
This phase focuses on the implementation of advanced infrastructure on a global level. The infrastructure is fully designed, engineered, operated, and managed through long-term strategic partnerships with global companies and operators, injecting billions of dollars into the previous logistics system as part of the 2024 plan.
This is achieved by establishing international stations that enable the internationalization of the Egyptian logistics system and its sustainable integration into the global supply chain.
Egyptian and foreign investments are directed towards creating integrated developmental international logistics corridors to link production areas (industrial, agricultural, mining, and service sectors) to seaports through fast and secure transportation, including dry ports and integrated logistics zones.
Among the most important of these corridors is the integrated Sokhna-Alexandria Logistic Axis, which stretches from Ain Sokhna Port on the Red Sea, passing through the dry port of the Tenth of Ramadan and the associated logistics zone, as well as the industrial zone in the Tenth of Ramadan, reaching Cairo, the largest urban center in the Middle East.
It then continues to the industrial city of 6th of October, the dry port, and the associated logistics zone, until it reaches the major port of Alexandria. Additionally, there is the Arish/Taba logistic corridor, starting from the maritime port of Arish on the Mediterranean Sea and extending to the port of Taba on the Gulf of Aqaba, passing through the heavy industries in Sinai.
There is also the Tanta/Mansoura/Damietta logistic corridor and the Cairo/Alexandria logistic corridor, starting from the train station at the southern region of Egypt in Beshayl, passing through the dry port of Sadat and the dry port of 6th of October, until reaching the port of Alexandria.
Lastly, the Gerjoub/Sallum logistic corridor begins at the maritime port of Gerjoub and reaches the land port of Sallum, passing through the eastern logistics zone of the Sallum port.
Upon the completion of this phase, new berths will be added, with a total length of 65 kilometers and depths ranging from 15 to 18 meters.
The most important of these berths include the ports of Berenice, Safaga, Ain Sokhna, Adabiya, and Nuweiba on the Red Sea, as well as the ports of Arish, Port Said, Damietta, Abu Qir, Alexandria, and Gerjoub on the Mediterranean Sea.
The total length of the berths in the seaports will reach 100 kilometers. In addition, wave barriers with a length of 15 kilometers will be constructed, and the navigational channels will be deepened to accommodate a capacity of 400 million tons annually, instead of 185 million tons, as well as 40 million equivalent containers annually, instead of 12 million.
The expansion plan aims to position Egypt as a leading global trade and logistics hub, enhancing its competitiveness and attracting more investments. The development of advanced infrastructure and the integration into global supply chains will have a positive impact on Egypt's economy, creating new opportunities for trade and contributing to its overall growth.
In light of the strategic partnerships formed with major global container terminal management and shipping companies, Egypt aims to ensure the arrival and increased frequency of a larger number of international vessels at its ports. The goal is to double the port operation capacity and expand transit trade as follows:
Long-Term Strategic Partnerships:
1. Shipping Lines:
• MSC, the world's largest shipping line, forms an alliance at Berth 100 in the Dekheila Port, with the aim of maximizing the station's capacity to handle 2 million TEUs annually.
• Maersk, the second-largest shipping line globally, joins forces in East Port Said and increases the maximum capacity of the station to handle 7 million TEUs annually.
• CMA CGM, the third-largest shipping line worldwide, forms an alliance at Alexandria Port and El Sokhna Port, with a combined station capacity of 305 million TEUs annually.
• COSCO, the fourth-largest shipping line globally, establishes a container terminal at El Sokhna Port with a capacity of 2 million TEUs annually.
• Hapag-Lloyd, the fifth-largest shipping line globally, forms an alliance at Damietta Port, known as "Tahya Misr 1," with a capacity of 35 million TEUs annually.
• Evergreen, the sixth-largest shipping line globally, forms an alliance at Abu Qir Port with a capacity of 2 million TEUs annually.
2. Global Port Operators:
• Hutchison Port Holdings (HPH) forms an alliance with MSC at Berth 100 in the Dekheila Port, aiming to maximize the station's capacity to handle 2 million TEUs annually.
• A.P. Moller, in alliance with Maersk Line, expands the maximum capacity of the East Port Said station to handle 7 million TEUs annually.
• CMA Terminal, in alliance with CGM CMA and Egyptian Global Ports Management (EGMPT), operates at Alexandria Port's "Tahya Misr" station with a total capacity of 15 million TEUs annually.
• CMA Terminal, in alliance with HPH, CGM CMA, and COSCO, establishes a container terminal at El Sokhna Port with a capacity of 4 million TEUs annually.
• EUROGATE forms an alliance at Damietta Port's "Tahya Misr 1" station with a capacity of 35 million TEUs annually.
• HPH forms an alliance with Evergreen at Abu Qir Port with a capacity of 2 million TEUs annually.
• Abu Dhabi Ports Group establishes a multi-purpose station at Safaga Port with a capacity of accommodating 50,000 TEUs annually.
• DP World operates a container terminal at El Sokhna Port with a capacity of 15 million TEUs annually.
These partnerships have been established with more than 70% of the world's container shipping fleet and operators, equivalent to 25% of global container trade. These collaborations have attracted foreign direct investments of $3 billion to date.
The strategic partnerships aim to increase transit trade, with Egypt targeting a trading volume of approximately 15 million TEUs annually by 2030 and surpassing the milestone of 25 million TEUs annually by 2050.
Significant presidential projects:
First: The "Tahya Masr" Multi-Purpose Station Project at Berths 55-62 One of the most significant projects in the development of maritime ports is the construction of the "Tahya Masr" Multi-Purpose Station at Berths 55-62 in the Port of Alexandria. Despite the challenges posed by the COVID-19 pandemic, construction of the station began in the first quarter of 2020. Enormous dredgers were utilized to transport 12 million cubic meters of clean sand from the sea to create the station, with depths ranging from 14 to 17.5 meters. The reclaimed land accounts for 15% of the station's total area, and the land reclamation process took 10 months.
Following the land reclamation, soil improvement works commenced, followed by the construction of vertical elements and quays. The construction phase took approximately 24 months, during which all infrastructure was procured. Additionally, a contract was signed to purchase all the necessary heavy equipment for the station, including giant quay cranes and yard cranes.
Stringent criteria and standards were established for the selection of a specialized global operator in managing and operating multi-purpose stations. French shipping company CMA-CGM won the bid and formed a partnership with the Egyptian Group for Multi-Purpose Stations, creating the "Tahya Masr" TMT company to manage and operate the station.
TMT oversaw the preparation and equipment setup for operation, procuring high-specification technical equipment to align with the vast dimensions and specifications of modern ships. For the initial phase, four giant quay cranes were purchased, with the capacity set to reach ten cranes upon completion of the station's capacity.
These cranes can handle ships measuring 400 meters in length, carrying 24,000 equivalent container units, with depths of up to 17.5 meters. The cranes utilize state-of-the-art systems to reduce loading and unloading times from the quays, enhancing operational efficiency, security, and monitoring. Additionally, twelve-yard cranes were acquired for the initial phase, with the number set to increase to thirty when the station reaches its full capacity.
Furthermore, 32 container haulers were acquired for the initial phase, set to increase to 71 haulers upon completion of the station's capacity. All station equipment operates on clean electrical energy, making it the first of its kind in the Arab Republic of Egypt.
It is worth mentioning that the station operates through an automated system for container loading, unloading, transportation, and storage, controlled by a central control center within the station, along with modern self-operating gates for truck entry and exit.
The trial operation of the station commenced in February 2023, with the reception of giant vessels carrying loads of up to 24,000 containers. The station, with a capital of 100% Egyptian ownership, provides over 1,500 direct job opportunities, employing over 95% Egyptian workers, and approximately 2,000 indirect job opportunities for ship reception activities.
The station comprises trading yards spanning over half a million square meters, divided into three trading stations (containers, general cargo, and automobiles), capable of handling 12 to 15 million tons of goods annually and receiving 6 to 7 large vessels simultaneously on the station's quays, which stretch for 2,530 meters. This qualifies the station to accommodate large-tonnage vessels.
Second: Berth 85/3 for Timber and Grain The construction of Berth 85/3 at the Port of Alexandria, with a contractual value of 452 million Egyptian pounds, aims to increase the port's handling capacity to meet the growing demand for timber and grain goods, with a trading capacity of 5 million tons annually. The project consists of berths measuring 433 meters in length and reaching depths of 15.5 meters, covering a land area of 35,000 square meters.
Third: Construction of Hwais Al-Malih Bridges; The project aims to increase river transport capacity at the port by raising the bridge's height to allow for the passage of barges loaded with containers in two tiers instead of one, as well as facilitating land and railway traffic.
The project includes the construction of two upper car bridges, each measuring 210 meters in length, allowing for two-way traffic. Additionally, a 48-meter railway bridge will be built to accommodate two-way traffic.
Fourth: Wave Barriers at Damietta Port; A new western wave barrier, measuring 4,345 meters in length, will be constructed, along with an extension to the existing eastern wave barrier, measuring 1,565 meters in length.
The project aims to reduce annual maintenance expenses resulting from sedimentation in the navigation channel and turning basin, which currently cost around 300 million Egyptian pounds. It aims to achieve a reduction in sedimentation rates by up to 90%, as well as the construction of a new multi-purpose station, "Tahya Masr 2," behind the western wave barrier.
Fifth: October Dry Port Project; As part of the implementation of integrated logistics corridors and the importance of dry ports and logistics zones, the state has constructed the October Dry Port. It received the GLOBAL IJ Award as the best and first transport project under the European Bank for Reconstruction and Development's Green Cities program in the Middle East and North Africa. The port was inaugurated during the Climate Conference in Sharm El-Sheikh last November.
The port, officially opened today, is located in the heart of the industrial zone of the new city of 6th of October, spanning an area of 100 acres, in addition to a logistics area covering 300 acres. The maximum handling capacity of the port is 720 containers per day, with a storage capacity of 260,000 equivalent containers per year. The direct workforce at the port amounts to 500 workers, in addition to 2,000 indirect job opportunities. The port is connected to Egypt's railway network through the 6th of October interchange.
Sixth: Development of Saloum Land Port; Moving to a different type of port, but one of the land ports, the development of the Saloum Land Port has been completed on an area of 286 acres, making it the largest land port in the Arab Republic of Egypt.
The project involved the construction and development of 41 buildings, roads, and facilities within the port, as well as the modernization of security measures using advanced systems and equipment. An internal logistics area covering 21 acres, including warehouses and refrigerators, was also established, along with an industrial logistics area spanning 700 acres.
The development of the Saloum Land Port contributes to facilitating the movement of individuals and goods with neighboring Libya by reducing transit time for individuals and releasing goods efficiently.
The Egyptian government has embarked on a series of ambitious development projects aimed at bolstering the country's maritime infrastructure.
These initiatives, which encompass various ports along the Red Sea and the Mediterranean, are expected to enhance trade capabilities, alleviate congestion, and facilitate the movement of goods. Among the notable projects are the ongoing developments at Alexandria and Damietta ports.
Alexandria Port Development:
As part of the comprehensive plan to upgrade Alexandria Port, multiple projects are currently underway to enhance its capacity and efficiency.
Firstly, a project valued at EGP 53.4 million aims to revamp and upgrade the railway lines within Alexandria Port. This strategic undertaking aims to increase the transportation of various goods through railways, thereby reducing congestion and alleviating traffic burdens on roads. The project involves the renovation of approximately 3.5 kilometers of railway lines.
Additionally, a multipurpose station is being constructed on Quay 100 at El Dekheila Port with an estimated cost of EGP 3.4 billion. This project aims to expand the handling and storage capacity of El Dekheila Port, accommodating around 9-11 million TEUs (Twenty-foot Equivalent Units) of containers and 6-7 million tons of general cargo and grain annually. The multipurpose station consists of a quay measuring 1,800 meters in length and a depth of 18 meters, along with a land area spanning 660,000 square meters. It will be capable of accommodating four ships measuring 240 meters each and one ship measuring 400 meters.
Furthermore, a dry bulk station is being established at El Dekheila Port, costing approximately EGP 1.6 billion. This project aims to increase the handling and storage capacity of grains and cereals at the port by 6-7 million tons annually. The dry bulk station comprises a quay measuring 1,150 meters in length and a depth of 15 meters, with a land area of 200,000 square meters. Similar to the multipurpose station, it will be able to accommodate four ships measuring 240 meters each.
The Alexandria Port expansion also includes the construction of wave barriers with a total length of approximately 7,200 meters. Egyptian companies, along with Egyptian consultants, are involved in executing these wave barrier projects, which have an estimated cost of EGP 6.7 billion.
Damietta Port Development:
In an effort to further develop Damietta Port and boost its capacity, several projects are currently underway.
The "Tahya Misr 1" container terminal project is being implemented with an investment of EGP 4.5 billion. It is a joint venture between Arab Contractors and Archirodon and aims to establish a container terminal with an annual handling capacity of 3.5 million TEUs.
The terminal will feature berths measuring 1,970 meters in length, with a depth of 18 meters, and a rear area spanning 922,000 square meters. The project is expected to generate revenues of up to $3.2 billion during its concession period and create approximately 1,000 direct and indirect job opportunities. Moreover, it is anticipated to attract 1.2 million transit containers from East Mediterranean ports.
The European consortium consisting of Eurogate Germany, Contship Italia, and Hapag-Lloyd Germany will be responsible for the management and operation of the Tahya Misr 1 terminal.
In addition, plans are underway to establish the comprehensive "Damietta Logistics Hub" at an investment of $490 million over a 30-year period. The logistics hub will integrate container terminals and create logistics centers in the Delta and Upper Egypt regions. The objective is to connect the terminal with dry ports, industrial zones, and consumer markets through rail transport.
Other initiatives at Damietta Port include the deepening of the navigational channel and the turning basin, with a goal of reaching a design depth of 18.5 meters. The National Dredging Company is undertaking this project, which carries an estimated cost of EGP 1.4 billion.
Furthermore, a multipurpose station, named "Tahya Misr 2," is being constructed behind the western breakwater at Damietta Port. The station will have a total length of 3,400 meters, a depth of 17 meters, and rear areas covering an estimated 2.2 million square meters. The project is estimated to cost EGP 8.3 billion.
Lastly, a sea quay measuring 600 meters in length, with a depth of 17 meters, and a rear area spanning 270,000 square meters is also planned for construction at Damietta Port. The estimated cost of this project is EGP 1.3 billion.
These extensive development projects signify Egypt's commitment to enhancing its maritime infrastructure, promoting trade growth, and establishing itself as a major regional hub for international commerce. With significant investments and strategic partnerships, Egypt aims to strengthen its position as a key player in the global maritime industry.
The government of Egypt has initiated a series of ambitious development projects aimed at enhancing the maritime infrastructure along the Red Sea coast. These initiatives are designed to boost trade and facilitate the movement of goods and containers through the region. Among the key projects are the establishment of a container terminal in Safaga and the expansion of ports in Suez and Sahl Hasheesh.
Safaga Container Terminal: As part of the development plan, a new container terminal is being constructed in the city of Safaga. The terminal will feature a 1,100-meter long quay with a depth of 17 meters, allowing it to accommodate general cargo and container vessels. The estimated cost of this project is 2.6 billion Egyptian pounds, and it is being carried out by a consortium of companies, including EDEX, Sons of Abdel Salam El-Feki, and Al-Gharafat Company.
The terminal is expected to have an annual capacity of half a million containers, with the potential to handle up to 3 million containers. Additionally, it will facilitate the reception of general cargo amounting to 7 million tons annually, further enhancing Egypt's trade capabilities.
Safaga Seaport Quay: Another significant development in Safaga is the construction of a 65-meter long quay with a depth of 10 meters. This expansion project, costing 74 million pounds, aims to increase the port's capacity to handle larger vessels. The project is being executed by the General Nile Company for Roads and Bridges.
Suez Port: In the comprehensive development plan for Suez Port, a new naval arsenal is being established. This includes the construction of a 340-meter long quay with a depth of 7 meters, with an estimated cost of 350 million pounds.
Furthermore, two tugboats with a towing capacity of 70 tons each will be built and supplied to Suez Port. These tugboats will enhance the efficiency of marine units involved in towing and guiding large cargo ships. The implementation of this project, costing 536 million pounds, falls under the jurisdiction of the General Organization for Maritime Industries and Services.
Sahl Hasheesh Port: The development project for Sahl Hasheesh Port aims to transform it into a world-class hub, serving trade between South and East Asia, Southern and Western Europe, and North Africa. Major international companies specializing in operating and managing ports, as well as global shipping lines, are currently being considered for the operation and management contracts of the new facilities to be established at the port.
The development works at Sahl Hasheesh Port include the construction of four new basins and 18 kilometers of maritime berths with a depth of 18 meters.
In addition, trading and logistics areas covering 8.6 million square meters will be created, along with a railway network spanning 17 kilometers, connecting the electric railway between Sahl Hasheesh, Alamein, and Marsa Matrouh. Furthermore, a 17-kilometer arterial road will be constructed, linking the berths and the entire port, ensuring smooth flow and preventing any future congestion. Additionally, wave barriers extending 3,300 meters will be erected.
These development projects are being expedited to capitalize on the strategic location of the Red Sea ports for green hydrogen initiatives. The ongoing works at Sahl Hasheesh Port, in particular, have played a crucial role in attracting private investments in clean energy, green hydrogen, and ammonia industries.
The proximity of the port to the Sahl Hasheesh industrial zone has made it an attractive destination for investors, facilitating easy operations and export activities. Major international companies have shown keen interest in investing in green fuel projects for ship fueling and maritime services, given the port's pivotal location on the Red Sea and its significance in global trade movements.
In conclusion, Egypt's ambitious development projects in its maritime infrastructure are poised to bring about positive and transformative changes to the country's trade and port capacities. With a strategic focus on key ports such as Alexandria and Damietta, these initiatives are set to propel Egypt's position as a regional trade hub and attract increased international investment. The comprehensive enhancements, including railway line upgrades, multipurpose stations, dry bulk terminals, wave barriers, and logistics hubs, demonstrate Egypt's commitment to modernizing its port facilities and improving operational efficiency.
The upgraded railway lines within Alexandria Port will not only alleviate congestion but also strengthen the multimodal transportation system, facilitating the smooth movement of goods and reducing the burden on road networks. This expansion will enhance the port's ability to handle a diverse range of cargo efficiently, fostering increased trade volumes and benefiting both domestic and international stakeholders.
Similarly, the development projects at Damietta Port, such as the "Tahya Misr 1" container terminal and the planned logistics hub, will significantly boost the port's capacity and improve connectivity to inland regions. The establishment of the container terminal with its impressive handling capacity will attract global shipping lines and promote trade growth, while the logistics hub will create a seamless integration between the port, dry ports, and industrial zones, enhancing efficiency and facilitating smoother supply chains.
Egypt's commitment to these development projects is further demonstrated by its partnerships with both domestic and international entities. The involvement of Egyptian companies and consultants in the construction of wave barriers at Alexandria Port emphasizes the country's dedication to leveraging its national expertise. Additionally, the collaboration with the European consortium for the management and operation of the Tahya Misr 1 terminal at Damietta Port showcases Egypt's intent to create a world-class port operation with international standards.
Overall, Egypt's comprehensive approach to enhancing its maritime infrastructure and expanding its port capacities sets the stage for a brighter future. These initiatives not only aim to improve operational efficiency but also to attract more international trade, investments, and job opportunities. With these developments, Egypt is positioning itself as a key player in the global maritime industry, fostering economic growth, and solidifying its role as a vital link in international supply chains.
