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Egypt announced several maritime projects, increasing infrastructure investments as part of its economic stimulus plans.
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CAIRO: Minister of Investment Mahmoud Mohieldin announced the inauguration of the third phase of a container terminal at the East Port Said port worth LE 3 billion, according to a report by investment bank Beltone Financial.
The holding company also plans to establish new piers in Alexandria with the purpose of container handling as well as a container handling terminal at a cost of LE 1.5 billion.
The minister also said that the government would establish a new container terminal port of Safaga at an investment cost of $200 million.
In its last general assembly meeting, the Holding Company for Maritime and Land transport estimated investments at LE 547 million for 2010/11, compared to LE 322 million the previous year, reported Al-Ahram.
Mohieldin added that the expected net profit during the next fiscal year is estimated at LE 616 million.
He underlined the importance of developing infrastructure and the investing in and maintaining road and maritime transport to improve services to citizens and industry.
The minister specifically mentioned the development of container ports projects on the Red Sea coast, and the construction of the Upper Egypt- Red Sea road as key to reviving industrial zones and activity in Upper Egypt.
Early 2009, Egypt’s government doubled its economic stimulus plan to LE 30 billion ($5.4 billion).The money was mostly allocated for spending on new infrastructure projects in an effort to stimulate the economy, create jobs and to maintain the current levels of investments in industry and trade.
According to Minister of Trade and Industry Rachid Mohamed Rachid, infrastructure spending was designed to reduce the cost of industrial production in Egypt, to increase the presence of Egyptian products internationally and to stimulate the domestic market.
In a report published by the Egyptian Center for Economic Studies, Omneia Helmy, deputy director, discusses the importance of logistics reform in improving the competiveness of fruits and vegetable exports, one of Egypt’s most important exports to the EU market.
“If Egypt manages to reduce the costs of transport and related logistics services by establishing highly efficient ports and a competitive shipping services industry, the cost competitiveness of its fruit and vegetable supply would improve,” writes Helmy.
“By enhancing the efficiency of transport and related logistics services, Egypt could become an important player in the logistical organization and in distributing fresh and processed fruits and vegetables to the EU market,” Helmy concludes.
According to the Economist Intelligence Unit Country Report for June 2010, “The government’s fiscal stimulus packages, aimed particularly at spending on infrastructure, will continue to offset some of the negative effects of the slowdown on the manufacturing sector and employment, and will help to sustain investment and household demand.”
