Egypt-based DP World Sokhna, part of Dubai port operator DP World, announced on Sunday a partnership with China State Construction Engineering Corporation (CSCEC) and China Ocean Shipping Company (Cosco).
The trilateral partnership will see DP World Sokhna becoming a hub for all construction material imports needed to build the central business and financial district in Egypt’s new capital.
CSCEC, the largest construction conglomerate in China, is the company in charge of developing the central business and financial district in the new capital.
As part of the partnership, CSCEC will benefit from Sokhna’s proximity to the new capital and its advanced road and rail links. It will also benefit from the Port’s strategic location just in Sokhna near the southern end of the Suez Canal, on the Red Sea, a key gateway for Asia, Europe, and other international markets, DP said in a statement.
DP World Sokhna said it already has a dedicated facility for catering existing and future business of CSCEC. Upcoming Basin 2 facility will support the business of CSCEC, the statement added.
The partnership with the two Chinese construction firms “provides the opportunity for DP World Sokhna to expand its role in supporting Egypt’s economy …,” Suhail Al Banna, chief executive and managing director of DP World Middle East and Africa, said.
This will be by “serving as the exclusive port for all of the central business district’s cargo, and ultimately, companies who will be setting up their operations in the new capital.” Al Banna explained.
“As a major gateway for Egypt’s trade, we look forward to utilizing DP World robust capabilities to handle cargo transiting through the important East-West trade route.”
DP World Sokhna recently marked its 10th year anniversary by announcing a major expansion through Basin 2, a step which brought DP World’s total investment in Egypt to $1.6 billion.
When completed in the second quarter of 2020, Basin 2 will nearly double capacity at the port to 1.75 million TEUs per year, it stated.
Located approximately 50 km (31.1 miles) east of the current traffic-clogged capital Cairo, Egypt’s new administrative capital will cover an area of 700 square kilometres and will be capable of accommodating 6.5 million people, when completed.
As a driver for economic growth, job creation, and urban transformation, the new capital is a $45 billion mega-project and one of the key development projects that are being launched by the Egyptian government. In addition, ministries, parliament, and civic institutions will be relocated to the new capital.
The signing ceremony took place at CSCEC’s premises in the new Capital, and attended by Ajay Singh, CEO of DP World Sokhna; Alia Gammal, commercial manager of DP World Sokhna; Chang Weicai, general manager of CSEC Egypt. Tiang Dong, vice president of Cosco Shipping Europe; Lin Ji, chairman of the Management Board; and Fan Jue, managing director of Cosco Egypt, also attended the signing.
