Africa-Press. Egypt is seeking to attract American shipping lines to its ports; the Minister of Transport presented a list of investment projects in the field of transport and logistics to Washington, including “managing and operating terminals, and establishing joint logistics industrial zones.”
This came during the minister’s discussions with the Deputy Assistant Secretary of Commerce on the sidelines of the “Ports Infrastructure and Marine Innovation” conference organized by a local source in Cairo.
Proposed Projects
The Minister of Transport confirmed in an official statement that among the proposed projects is “cooperation in managing a number of terminals at the ports, attracting American shipping lines, in addition to establishing joint industrial logistics zones adjacent to these terminals, through which products intended for export to the United States will be manufactured, and raw materials will be imported from America to be reprocessed in Egypt,” which “contributes to making Egypt a center for American industries in the Middle East and the region.”
According to the Ministry of Transport, several projects “could witness joint cooperation between the two sides,” including “managing, operating, and maintaining, then handing over a giant container terminal at (Al-Maks) port, managing, operating, and maintaining, then handing over a general cargo terminal at (Damietta) port, establishing a shipbuilding yard in Damietta, and managing, operating, and handing over a raw iron reception terminal at (Al-Adabiya) port, along with the global logistics area at Sallum port and the logistics area in the Sadat industrial city.”
Map of Ports
Egypt has a map of maritime ports in the Red and Mediterranean Seas and aims to develop them to enhance its role in international trade. According to the Ministry of Transport, the development aims to “transform Egypt into a regional center for transport and logistics, transit trade, and accommodate the increasing growth in global trade movement.”
A statement from a local source quoted Mitchell confirming that “the list of projects presented by the Egyptian Minister of Transport reflects the level of development witnessed by the transport sector in Egypt and the state’s commitment to continue progress in this field.”
He emphasized “the American side’s interest in establishing Egyptian-American partnerships in the transport sector that positively reflect on trade movement between the two countries, whether through the public or private sector,” adding that “the next phase will witness coordination with several American companies interested in cooperation and partnership with the Egyptian side in transport projects, aiming to identify projects that can be implemented according to the priorities of both the Egyptian and American sides.”
Economic expert Wael Al-Nahas believes that Egypt’s efforts coincide with an American trend to establish a complete global maritime commercial fleet and logistics areas in several strategically located countries. This is also a global trend, as many countries seek to expand the establishment of logistics areas and storage terminals to avoid the impacts of any regional tensions on trade movement.
Al-Nahas confirms that “if these projects are implemented, they will yield significant economic benefits for Egypt, transforming it into logistics areas and corridors for global trade, representing a leap for Cairo’s economy.”
However, he expressed concern about what he described as “the political impacts of joint Egyptian projects and logistics areas implemented by countries with relations to the United States characterized by ‘conflict and tension,’ such as the Russian and Chinese logistics areas,” clarifying that “these impacts must be taken into consideration.”
Economic Pragmatism
However, economic expert Rashad Abdo downplayed “these political impacts.” He states that “the global trend is based on economic pragmatism; economic partnerships can be formed with several countries despite political tensions.”
The Minister of Transport confirmed in his statement on Monday that “there are promising opportunities for American companies at Gergoub port, which has a distinguished geographical location, serving all global trade heading to Asia and coming from America via the Mediterranean Sea, in addition to the possibility of cooperation in the field of electric traction.” He noted “the Egyptian side’s interest in enhancing cooperation with the United States in the field of international corridors, supporting global trade movement, and enhancing Egypt’s position as a regional center for transport and logistics and transit trade.”
Abdo believes that “regional tensions enhance Egypt’s efforts to transform into a logistics center for global trade.” In his opinion, “Egypt should develop comprehensive visions for the projects, form joint committees with American officials, and prepare feasibility studies and clarify advantages and incentives to translate these discussions into real projects.”
