Egypt Pushing Ahead with Suez Port Expansion Projects

Posted by Michelle Howard
Thursday, June 12, 2014
Photo courtesy of Suez Canal Authority

Egypt is pressing ahead with plans to develop a new wheat storage facility and expand port operations at two terminals in the Suez area as the country looks to bolster strategic food reserves and attract investment, a top port official said.

President Abdel Fattah al-Sisi, who as armed forces chief toppled Islamist President Mohamed Mursi last July following mass protests, was sworn in on Sunday and seeks to fix Egypt's economy while overcoming political divisions after a long period of turmoil and bloodshed.

Egypt plans to boost its storage capacity in the strategic wheat sector to reduce reliance on imports and cut its 32 billion Egyptian pound ($4.5 billion) overall food import bill. A government minister said this week Egypt wants to be a "global logistics hub" for grain storage.

Hassan Falah, chairman of the Red Sea Ports Authority, said it had recently issued a tender to develop a wheat storage site with a capacity of 2 million tonnes at the port of Adabiya. He declined to disclose the value of the project.

"There are a number of Egyptian banks who are willing to fund the project with any investors and one of them is the National Bank of Egypt," Falah said on a trade visit to Britain this week. "In six months, the winner of the tender will be known."

The National Bank of Egypt could not immediately be reached for further comment.

Falah said Adabiya would add to grain storage facilities at other ports in Damietta, along Egypt's Mediterranean coast, and Safaga, which is situated along the Red Sea.

"Adabiya is in the middle and it is preferred to shorten the distance and can serve cities and governorates in different areas," Falah told Reuters via an interpreter.

Egypt is also making progress in increasing local storage capacity with the help of one of its major Gulf Arab backers, the United Arab Emirates. The UAE has committed to funding the construction of 25 silos to boost storage capacity by a further 1.5 million tonnes.

Falah said Port Tawfik, also situated in Suez and another terminal within his port authority, had issued a tender to develop a multi-purpose port there.

"In the pipeline and under study are expansion projects for yachts and cruise ships at the port," he added.

Authorities have mounted a crackdown on the Muslim Brotherhood, once Egypt's most well organised Islamist group, and its supporters since Mursi was deposed, killing hundreds and arresting thousands. Sisi still faces a violent threat from militants based in the Sinai peninsula, who are believed to have access to weapons smuggled from chaotic Libya.

In May, the army said it had seized 15 tonnes of a material used to make explosives in a town straddling the Suez Canal, a vital source of foreign exchange for Egypt and the fastest shipping route between Europe and Asia.

Falah, who retired from the Egyptian navy as a rear admiral in 2007, said there were no security issues with Suez.

"There are multiple checkpoints throughout Suez. The Suez area is secure," he said.

Sisi's plans include creating a Central Sinai governorate, or administrative area, carved out of the North and South Sinai. North Sinai has seen countless militant attacks on policemen and soldiers since Mursi's ouster.

"A new governorate will be created in the Sinai area," Falah said. "This will mean there will be a lot of improvements in the security situation. It will be much better and not worse."

(By Jonathan Saul, Additional reporting by Shadia Nasralla and Maggie Fick in Cairo; Editing by Dale Hudson)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Sanamar Launches 3 Tugs from New Yard

Sanmar’s new custom-built, general purpose shipyard at Altinova, Turkey, has launched three 60-metric-ton bollard pull tugs on the same day, less than five months since work first started at the yard.

Pirates and Hold-ups: Crime Strikes Venezuela's Oil Industry

When night falls over western Venezuela, armed gangs known as "pirates" sometimes ride boats into muggy Lake Maracaibo to steal equipment from oil wells.   In the country's Paraguana peninsula,

US Refiners' Group Wants Wide Debate on Oil Exports

The U.S. oil refining industry's association is not opposed to lifting the country's 40-year-old ban on crude exports as long as the move is part of a bigger effort to lower barriers to trade,

Finance

Shipping Confidence at 7-year Low -Survey

Overall confidence levels in the shipping industry fell during the three months to May 2015 to a level equal to the lowest rating recorded in the past seven years,

Teekay Sells FPSO, Announces Dividend Boost

Teekay Corporation to complete sale of the Knarr FPSO and announces dividend increase of 75 percent   Teekay Corporation announced today that its board of directors

S. African Competition Watchdog Fines Japanese Shipping Firm

South Africa's competition watchdog has recommended Japanese shipping firm Nippon Yusen Kabushiki Kaisha Ltd (NYK) pay a 104 million rand ($8.5 million) penalty

Maritime Security

Pirates and Hold-ups: Crime Strikes Venezuela's Oil Industry

When night falls over western Venezuela, armed gangs known as "pirates" sometimes ride boats into muggy Lake Maracaibo to steal equipment from oil wells.   In the country's Paraguana peninsula,

Activists Planning Protest Against Shell's Arctic Business

U.S. environmental activists said they planned to protest on Tuesday against the launch of the second of two oil rigs central to Shell's plans to drill for oil in the Arctic.

Samsung Bags Order for Decks on Johan Sverdrup

Statoil, on behalf of the Johan Sverdrup license, has awarded Samsung the contract for decks for both the process and riser platforms.  The total contract value is NOK 7 billion.

News

Dittmann Named Chairman of SEA Europe

Kjeld Dittmann, the Managing Director of Lyngsø Marine A/S, is the new Chairman of the European Ships and Maritime Equipment Association (SEA Europe).    He succeeds Govert Hamers,

Sanamar Launches 3 Tugs from New Yard

Sanmar’s new custom-built, general purpose shipyard at Altinova, Turkey, has launched three 60-metric-ton bollard pull tugs on the same day, less than five months since work first started at the yard.

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Vessels

Sanamar Launches 3 Tugs from New Yard

Sanmar’s new custom-built, general purpose shipyard at Altinova, Turkey, has launched three 60-metric-ton bollard pull tugs on the same day, less than five months since work first started at the yard.

DryShips Sells Six Aframax Tankers

Dry bulk and petroleum cargo shipper DryShips Inc., through its majority owned subsidiary, Ocean Rig UDW Inc. of offshore contract drilling oil services, announced

Huge Yacht Carrier Headed for South Pacific

New policies making it easier for foreign-flagged vessels to explore the coastlines of Australia have lead DYT Yacht Transport (DYT) to schedule its largest semi-submersible yacht carrier,

Government Update

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

Pirates and Hold-ups: Crime Strikes Venezuela's Oil Industry

When night falls over western Venezuela, armed gangs known as "pirates" sometimes ride boats into muggy Lake Maracaibo to steal equipment from oil wells.   In the country's Paraguana peninsula,

Yachts

Huge Yacht Carrier Headed for South Pacific

New policies making it easier for foreign-flagged vessels to explore the coastlines of Australia have lead DYT Yacht Transport (DYT) to schedule its largest semi-submersible yacht carrier,

Bergen Shetland Race Yachts at Lerwick

The yacht Serenity, skippered by Fridtjov Bergmann, proudly flies the Bergen Shetland Blue Ribbon as first to finish this year’s race across the North Sea from Norway.

UK Seeks Maritime Dominance of Yore

“Britannia rules the waves” paid a glowing tribute to the maritime past of the United Kingdom.  Over the past three centuries as the sun began to set on the British power, resilient U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2012 sec (5 req/sec)