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17 March 2025

Egypt To Launch New Dry Port Project By 2027

The dry port, located in the 10th of Ramadan city, aims to boost logistical capacity and attract international investments.

Plans are underway for the operation of a dry port and logistics area in the 10th of Ramadan city, set to launch by April 2027. This initiative is being advanced through a collaboration between Egypt's Ministry of Transport, represented by the General Authority for Land and Dry Ports, and the Swiss logistics company Medlog, which is allied with MSC, the world's largest shipping line.

The project will be operational as part of the private sector's participation and is expected to handle up to 150,000 containers annually, thereby boosting the region's logistics capabilities significantly. According to sources familiar with the developments, strict metrics have been set for the project, demanding significant infrastructural setups along with detailed operational requirements.

The Ministry of Transport has mandated the operator to implement projects capable of handling containers coming from the German region, allowing for the processing of around 50,000 containers every year. To facilitate this, the ministry has laid out additional specifications. Notably, the project will not only create focuses on container handling but will also permit services such as container repair and cleaning, sorting, and quality control logging.

Transport Minister Kamel Al-Wazir emphasized the need for Egypt to advance its position as a global maritime and logistics hub, stating, "Our aim is to establish more than just new ports; we are striving to create an integrated system of transport and logistics services." This vision is expected to attract more strategic partnerships, ensuring international standards and benefiting the local economy.

The dry port initiative has specific stipulations for its operation. Companies must adhere strictly to environmental and operational regulations, including maintaining at least 30% ownership of the project's shares for the first decade and 10% thereafter. Such measures intend to keep stakeholders actively involved long-term.

The timeline for operational deployment is underscored by significant penalties for delays. If the company fails to launch as planned, fines will accrue, reaching up to $22,000 per day. This regulation assures timely execution and minimizes any interruptions to service.

One of the strategic agreements signed recently includes the framework for cooperation between the contracting company for maritime and land transport and MSC Mediterranean Shipping Company SA, linking plans for managing and operating both maritime and dry ports. This agreement, formalized at the hands of executive stakeholders like Dr. Amr Mostafa and Soren Toft from MSC, showcases mutual objectives aligning with national growth ambitions.

Further underscoring the project's importance, the Ministry of Transport will oversee the construction and operational facets, ensuring compliance with both governmental and international policies to maximize effectiveness. The logistics hub is anticipated to improve freight services and increase the efficiency of transport operations across territories, including significant Egyptian ports like Sukhna and Port Said.

According to official documents, the site designated for this project spans over 120 acres for the dry port operations, with additional land reserved for the logistics center. After ten years from the project's initiation, the company will also be tasked with scaling up its capacity to allow for increased trade activity.

Under the memorandum of cooperation, it was noted there will be provisions for the shipping of containers through existing rail networks to major coastal locations, aiming for at least four daily lines capable of managing 50,000 containers each, growing to 25 lines daily by the project's conclusion.

By 2027, the docking facilities will have benefits for exporters and importers alike, with quick turnaround and efficient processing outlined. This is seen as pivotal not just for logistics, but also for fostering broader economic development within the region and enhancing trade flows through advanced logistics solutions.

With recent advancements, Egypt is prepared for these strategic endeavors, including emphasizing quality infrastructure developments. The goal, as articulated by key officials, is not only regulating cargo flow but also nurturing trade relationships, thereby fostering economic stability through upgraded transport networks.

Moving forward, this initiative stands to reshape not just local, but international logistics operations with the envisioned dry port and logistics area as integral components of Egypt’s economic framework.