Kuwaiti logistics company Agility has signed a partnership with Egypt’s Suez Canal Economic Zone to develop a new logistics hub in East Port Said.
The hub will feature “international-standard” logistics infrastructure to provide better facilities for the importing and warehousing of raw materials, and for exporting and distributing intermediate and final goods through the Suez Canal Ports, a statement said.
The logistics hub is part of the current expansion of East Port Said.
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, a statement said.
“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.”
He said the partnership will look at the development and marketing of both the logistics and industrial areas.
The agreement also includes studying the possibility of establishing a company between the Suez Canal Economic Authority and Agility.
Tarek Sultan, vice chairman and CEO of Agility said: “Egypt’s prominent location allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub.
“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,” added Sultan.
The agreement will see the project implemented in phases.
The first phase will prepare the feasibility studies to develop the logistics centre and the provision of customs technology services for eight months.
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 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.