Three European logistic giants team up for developing new container hub in Egypt
Two major European terminal operators, EUROGATE and Contship Italia Group, established a joint venture with Hapag-Lloyd, the German-based global container shipping line. The new entity was incorporated for building and operating a container terminal in the Egyptian port of Damietta, which will become a new hub for transshipping boxes in the East Mediterranean.
May 2022 has become a remarkable period for the project of a new container terminal in the Port of Damietta. On 10 May as the final concession agreement was signed in Cairo between the Government of Egypt and the Damietta Alliance Container Terminal joint venture, which was established by three European companies and their two partners from the Middle East: Hapag-Lloyd (39 per cent stake), EUROGATE (29.5 per cent), Contship Italia Group (29.5 per cent), Middle East Logistics & Consultants Group (1 per cent) and Ship & C.R.E.W. Egypt S.A.E. (1 per cent).
According to the document, the Government of Egypt has granted the 30-year-long concession for developing and operating a new container terminal in the Port of Damietta. The new facility, which is expected to be put into operation by 2024, was named the ‘Terminal 2’. It will have a final total operational capacity of 3.3 million TEU.
New hub
All the concerned parties are regarding the planned terminal as a new hub not only in Egypt but in the East Mediterranean too. EUROGATE and Contship Italia Group as the terminal operators will extend their abroad presence outside Europe. Hapag-Lloyd has its own view on the project. “With the new terminal Hapag-Lloyd will significantly improve its transhipment operation in the East Mediterranean market as well as access to the local Egyptian trade”, said Rolf Habben Jansen, CEO of Hapag-Lloyd.
The Government of Egypt expects to strengthen the country’s significance in global trade. “This is a very encouraging, well-planned partnership of international and Egyptian private sector in order to position Egypt as a global hub for logistics and trade. In this first phase we will establish the port of Damietta as an integrated logistics hub for containers, which will then be followed by the establishment of logistic corridors reaching different manufacturing areas in Egypt by railway network,” added Kamel Al-Wazir, Egypt’s minister of transport.