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|20 March, 2019

Suez Canal Economic Zone has projects planned until 2030, say officials

A new joint venture company is being set up to operate and manage infrastructure projects within SCzone

Cranes are seen near the Suez Canal in Port Said, Egypt July 29, 2018.

Cranes are seen near the Suez Canal in Port Said, Egypt July 29, 2018.

REUTERS/Amr Abdallah Dalsh

The new Suez Canal Economic Zone has a series of investments planned with a view to providing the necessary infrastructure required to attract potential investors into the space.

The General Authority for the Suez Canal Economic Zone (SCZone)’s North region deputy head General Mohamed Baraya, and South region deputy head Admiral Mohamed Shabaan told Zawya on the sidelines of an official visit by Prime Minister Dr Mostafa Madbouly last week that a huge amount of infrastructure work is currently taking place.

In the South region, Admiral Shabaan said the authority is looking to build capacity to provide 250,000 cubic metres (m3) of water per day, which will require a number of new water treatment and desalination plants to be built. The first plant, providing 20,000m3/day is due to complete in 2020 and a second, much larger plant is planned that will produce 130,0000m3/day.

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The authority is also working on boosting power to the area, with an additional 300MW of electricity-generating capacity set to be delivered by 2025. This figure will increase to 543MW by 2030, he said.

He pointed out that the main industries within the economic zone are petrochemicals, construction, textile, transport, logistics and pharmaceuticals.

"Dubai Ports World (DP World) is executing a logistics project worth $550 million. The project will raise containers (handled) to 2.9 million by 2020, instead of 1.1 million this year,” Shabaan said.

He said the expansion is taking place over three phases, with the first already complete.

He added that a joint venture company comprising the Industrial Development Group, ElSewedy Cables, Main Development Company (MDC) and the Suez Canal Economic Authority, will be created “soon” to operate and manage infrastructure projects.

In the North side of SCZone, meanwhile, General Baraya said that a joint Egyptian-Russian company will be set up in April to operate and manage a $7 billion Russian Industrial Zone, which spans 5.25 square kilometres and will be built out in three phases over 13 years.

He said that a new terminal at West Port Said is to be built at a cost of 200 million Egyptian ($11.6 million), and that it had “already signed several contracts” with foreign investors.

“Mercedes will be one of the international companies that will be launched from the west port of Port Said (with) a new logistics centre... and there are negotiations with major, international companies to work in the east port.”

He said that a deal had been signed with French environmental firm Ecoslops which will have a facility to collect and treat oil residue, with the potential for a micro-refinery unit to be added.

A new roll-on, roll-off facility with a 600m quay wall will be built to support the large vehicle platform site for an alliance between carmaker Toyota, Japanese shipping line NYK and French logistics firm Bolloré.

He also said that SCZone was also working with the Holding Company for Land and Marine Transport on a study for a new 800 metre-long container terminal, CT3, with an accompanying 420,000 square metre logistics zone.

(Reporting by Marwa Abo Almajd; Editing by Michael Fahy)

(michael.fahy@refinitiv.com)

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© ZAWYA 2019

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