ArabFinance: A European consortium comprising Germany’s Eurogate, Hapag-Lloyd, and Contship Italia will invest $500 million in the first phase of the development of the second containers terminal "Tahya Misr 1" at Damietta Port, according to an official statement on May 10th.
This comes as per the signing of an agreement between the consortium and Damietta Port Authority (DPA).
The infrastructure of the project is currently being implemented by another consortium consisting of Arab Contractors and Archirodon at an estimated cost of EGP 4.5 billion and is set for completion in December.
The European consortium, meanwhile, will be responsible for setting up and developing the superstructure of the project as well as for the management, operation, and maintenance works of Tahya Misr 1 terminal.
The project is the first-of-its-kind in the maritime and logistics sector in Egypt, which attracted the "largest European maritime alliance" to pump investments worth $500 million in the first phase, Minister of Transport Kamel El-Wazir said.
Moreover, El-Wazir noted that this project would turn Damietta Port into a hub for German transit containers by the third year from the beginning of operations, which would bring container handling at the port to 4.7 million twenty-foot equivalent units (TEUs) from 1.2 million TEU now.
Revenues of $3.346 billion are expected to be generated from this project in 30 years, he said, adding that it would offer 1,000 direct and indirect jobs.
He also remarked that this project represents the first phase of the establishment of Damietta’s integrated logistic axis, of which the second phase would commence by 2025.
Attended by the Egyptian Prime minister Mostafa Madbouly and El-Wazir, the signing ceremony took place in line with the directives of President Abdel Fattah El-Sisi.