PROJECTS: Egyptian industry welcomes plan for developing new logistics zones

New logistics zones to drive internal trade, reduce transportation costs

  
Image used for illustrative purpose. Container trucks stand in line on the road due to bad weather in the Mediterranean city of Alexandria, March 30, 2019.

Image used for illustrative purpose. Container trucks stand in line on the road due to bad weather in the Mediterranean city of Alexandria, March 30, 2019.

REUTERS/Amr Abdallah Dalsh

Egypt is planning to develop new logistics zones in different governorates to promote intra-country trade and make the distribution system more efficient, according to industry representatives interviewed by Zawya Projects.

Recently, local newspaper Al Mal had reported that Egypt is planning to set up three logistics zones in Sharkia, Red Sea and Suez with a total investment of 14.5 billion pounds ($908 million). It quoted Ibrahim Ashmawy, head of the Internal Trade Development Authority (ITDA) as saying that the goal is to build 60 regional logistics zones until 2030, divided into eight central areas, three of which are being implemented, along with 52 regional zones, 11 of which are currently being implemented.

Fathy El Tahawy, deputy head of the Household Equipment Division in the Cairo chamber of commerce told Zawya Projects that the new zones would facilitate the setting up of large distribution facilities that would reduce transportation costs.

He said the logistics zones would include grain silos, and cold chain facilities for trading in vegetables, fruits, meat, fish and other food products requiring refrigeration. Moreover, these zones would reduce damages suffered when transporting commodities such as cement and chemicals over long distances.

Samir Aref, Head of the 10th of Ramadan Investors Association, and a member of the Export Council for Engineering Industries, said that ITDA's logistics zones would ensure smoother distribution of goods across all governorates, accelerate internal trade and ultimately foster competition among merchants to supply high quality goods at competitive prices. He added that the Sharkia governorate would include two logistics zones in Belbeis and Zagazig.

Dr. Kamal El Desokey chairman and founder of Al Alamia for Rockwool (ROCKAL), said that cost of transportation affects the final price of the product, adding that logistics zones contribute to reducing transportation costs, which contributes to providing a good product at an affordable price, and in turn, enhances internal trade.

There are currently three major logistics zones in Egypt representing a total investment of about 25 billion pounds ($1.6 billion).

(1 US Dollar = 15.98 Egyptian Pounds)

(Reporting by Eman Hamed; Editing by Anoop Menon and Bhaskar Raj)

(anoop.menon@refinitiv.com)

#Egypt #Transport #Logistics #Trade

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