Secretary General of the Federation of Chambers of Commerce: Egypt is currently reaping the benefits of infrastructure projects implemented over the past 10 years.
Chairman of the Suez Canal Economic Zone outlines the 2020-2025 strategy
World Bank Regional Director: Egypt has a strategic position regionally and internationally, making it a hub for connectivity between countries.
CFO, COSCO SHIPPING Ports: The operating period for the new container terminal Project in Sokhna is 30 years, with total investment reaching approximately $375 million, and the capacity after completion will reach 1.7 million TEU.
Head of Gulf & Africa Region, China International Capital Corporation: Strong desire to increase Chinese investments in Egypt.
The third panel of the first New Development Bank seminar in Egypt discussed Egypt's efforts to become a global logistics hub and the implementation of infrastructure projects that enhance this goal.
The panel also highlighted the economic reforms being carried out by the state and sustainable infrastructure projects such as seaports and land ports implemented over the past 10 years and their impact on making Egypt a hub connecting the continents of the world.
Egypt, strategically located at the crossroads of Africa, Asia, and Europe, is rapidly asserting itself as a pivotal hub in global trade and commerce. Capitalizing on its proximity to major global shipping lanes, Egypt hosts essential transportation nodes like the Suez Canal and significant ports such as Alexandria, Damietta, and Port Said. These facilities position Egypt as an indispensable link in the chain of global shipments, further bolstered by its proximity to major oil producers, reinforcing its role as a vital transit point for energy resources.
The panel was moderated by Dr. Alaa Ezz, Secretary General of Egyptian Chamber of Industry and Trade and member of board of the BRICS Business Council. Panelists included Lieutenant General Kamel Al Wazeer, Minister of Transport, Egypt, Lieutenant General Mohamed Abbas Helmy, Minister of Civil Aviation, Egypt, Mr. Walid Gamaleldien, Chairman of Suez Canal Economic Zone, Egypt, Mr. Stephane Guimbert, World Bank Group Country Director for Egypt, Yemen and Djibouti, Mr. Fengnian Zhao, CFO, COSCO SHIPPING Ports, and Mr. Richad Soundardjee, Head of Gulf & Africa Region, China International Capital Corporation.
Dr. Alaa Ezz, Secretary General of Egyptian Chamber of Industry and Trade and member of board of the BRICS Business Council, said that the government, with all its agencies and ministries, has made strong efforts to support Egypt’s capacity to become a global hub in the field of vital transport and goods, especially in light of the transportation, port, and road projects implemented by the Ministries of Civil Aviation and Transport and Communications.
He added that strong efforts have been made to develop all parts of Egypt and cover them with a robust road network.
Ezz emphasized that the implementation of infrastructure projects is the key to the development Egypt has witnessed in the field of transport and logistics over the past 10 years.
“Egypt is currently reaping the benefits of what has been implemented over the past period, as evidenced by the volume of containers passing through Egypt and the products being exported from or through Egypt,” Ezz added.
For his part, Mr. Walid Gamaleldien, Chairman of Suez Canal Economic Zone, Egypt affirmed that the political leadership’s decision to invest in infrastructure was the driving force behind the economic zone's ability to attract more investments, especially in the fields of green energy production and ship refueling.
“The infrastructure preparation has also attracted many textile projects in the promising Qantara West industrial zone, targeting exports to contribute to achieving the goal of $100 billion in Egyptian exports by 2030,” Gamaleldien added.
He confirmed that the future holds more opportunities for cooperation between the economic zone and the BRICS business communities based on past successes and promising future opportunities.
Gamaleldien reviewed the 2020-2025 strategy of the Suez Canal Economic Zone, through which the economic zone has become a model for international economic cooperation, leading to the confidence of many international investments that chose it as a center for their expansions in various markets due to its distinguished strategic location and competitively priced skilled labor.
He emphasized that the strategic location of the economic zone and its affiliated ports on the Red Sea and the Mediterranean supports global supply chains, noting that cooperation with the New Development Bank enhances cooperation with BRICS countries.
Furthermore, Mr. Stephane Guimbert, World Bank Group Country Director for Egypt, Yemen and Djibouti, said the bank appreciates and supports partnerships between the public and private sectors due to the need for the services they provide together.
Guimbert said that it is clear to everyone that Egypt has a strong and distinctive strategic location both regionally and globally. Egypt has multiple free trade agreements, making it an excellent and central hub for connectivity between countries.
"Egypt has made strong efforts in recent years regarding economic reforms, infrastructure development, and overall improvement. It has political leadership with a clear vision and a government working hard to implement this vision. Reflecting the importance of Egypt’s location, 40% of the world’s trade passes through Egypt, and 30% of containers pass through the Suez Canal,” he added.
Guimbert pointed out that it is essential to look at the government's ability to benefit from the private sector and consider Egypt as a regional hub for transportation and other trade. Egypt has a lot of renewable energy besides its strategic location, enabling it to export this energy. In light of the reforms Egypt has undertaken, there is an opportunity for the private sector to produce and sell green energy, with the potential to create better opportunities in the energy sector.
World Bank Group Country Director for Egypt, Yemen and Djibouti confirmed that the Egyptian government is aware of the role and importance of the private sector and empowering it, which reduces the burdens on the state, noting that attracting the private sector is not only for investment but also for its strong expertise.
“There are many efforts by the state to enhance the transport system,” he stated.
Mr. Fengnian Zhao, CFO, COSCO SHIPPING Ports said that Egypt has a strategically important location for investment, known worldwide. He reviewed that COSCO Shipping and Logistics Services Group is one of the leading companies in this field globally, owning 223 container equivalents and operating in more than 300 locations in 38 countries worldwide.
Zhao revealed a cooperation between Egypt and his company in the new container terminal in Sokhna, stating that it’s a new terminal, built by the Egyptian government in Sokhna, and will be operated by a terminal company formed by industry leaders including COSCO SHIPPING Ports, Hutchison Ports and CMA terminals.
He added that the operating period for the project is 30 years, with total investment reaching approximately $375 million, and the capacity after completion will reach 1.7 million TEU.
“The Port of Sokhna is one of Egypt's major ports, and is located at the south of the entrance to the Suez Canal, approximately 120 kilometers east of Cairo, and is close to the northwest of Suez Canal Economic Zone as well as a gateway for trade between the east and the west,” CFO of COSCO SHIPPING Ports said.
Mr. Richad Soundardjee, Head of Gulf & Africa Region, China International Capital Corporation, noted that the corporation provides consultations, expertise, and capital in markets, along with technical and financial support, making it one of the major players in China, noting that despite China being a large and significant market, some companies are seeking further expansions and new markets worldwide.
He explained that the corporation believes Egypt is a crucial and robust center in logistics. The corridor between China and the entire region still holds much potential, enabling benefits from major market players. He noted that he has listened to high-level officials who have a desire to double their investments in Egypt, presenting a strong opportunity for partnership between Egypt and China to localize industries.
He concluded his speech by saying, "We want to work with the Egyptian side to increase the level of foreign direct investment from China in the region and to plan our investments in Egypt."