Ports And Railway Investment To Drive Transport Growth
The launching of three port projects in Egypt along with a railway system in Cairo are encouraging signs for the development of the country's transport infrastructure and aligns with our increasingly positive view on the construction market. As we have stated before, the ongoing political crisis in Egypt has not been all bad news for infrastructure; the interim government has been attempting to get projects off the ground in a pragmatic effort to attract much-needed investment into the sector. As such, we maintain that opportunities are attractive - given Egypt's high demand for infrastructure - for those willing to handle the risks.
Two projects to be recently announced were the Public-Private Partnerships (PPPs) for Safaga Port and Eltoor Port, launched by the Red Sea Ports Authority which is a subsidiary of the Egyptian Ministry of Transport. Safaga Port, located on the Red Sea, has a depth of 16 meters and a vessel capacity to handle up to 60,000 tons. Investment in this port will see the development of 220,000 square meters of land, including the construction, operation, management and maintenance of a marine jetty and a container terminal. The Eltoor project, a development of similar land area, involves building, operating, managing and maintaining a marine jetty and a multi-purpose terminal.
In addition, the Alexandria Port Authority has launched a tender for Alexandria's third container terminal in a 30-year concession contract. The new container terminal is planned to have a total area of 470,000 square meters and will be developed on a design, build, finance, operate and maintain basis. Alexandria is considered the main port in Egypt and the second most important city in the country. With its prime location on the Nile Delta between the Mediterranean Sea and Mariut Lake, this port handles over 75% of Egypt's foreign trade.
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