The Egyptian House of Representatives has approved the draft law for a concession to build and operate Egypt's first, dedicated roll-on, roll-off (RO-RO) terminal in the Suez Canal Economic Zone, it was announced on Monday.

In December 2019, the Suez Canal Economic Zone (SCZone) had signed a contract with the consortium of Bolloré Africa Logistics, Nippon Yusen Kaisha and Toyota Tsusho Corporation to build the terminal in East Port Said.

"The three shareholders of the concession strongly believe in Suez Canal Economic Zone future and are willing to commit to the development and the operation of a 600 metre quay and 212,000 square metre terminal dedicated to vehicles in East Port Said," a press statement issued by SCZone said, quoting its chairman Yehia Zaki.

Zaki said the concessionaire would invest around $150 million in equipment and infrastructure to handle close to 800,000 vehicles.

"This new terminal will provide the automotive industry with a state-of the-art services and efficient operation processes for import, export and transshipment of vehicles," he said.

SCZone will receive annual payments from the concessionaire amounting to around $233 million with the project expected to create 400 direct jobs and 1,000 indirect jobs.

In January, NYK had announced that commercial operations are planned to start by end of 2021.

(Writing by Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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© ZAWYA 2020