DB Schenker in Egypt writes history to launch the country’s first dry port
DB Schenker achieves another breakthrough in Egypt as the country etches a new milestone in its history to construct its first dry port. Along with El Sewedy Electric, and 3A International; DB Schenker in Egypt won the bid of operating the USD 176 million hub, which will be the biggest facility of its kind throughout Africa. The dry port is one of eight ports the Egyptian government plans to construct. Situated in the 6th of October City; outside the gates of Cairo; the hub is scheduled to become operational in 2022 and predicted to handle 720 containers (20-Foot Equivalent Units) per day - a total of about 250,000 TEU per year.
The tender, which lasted for almost two years, was issued by the General Authority for Land and Dry Ports under the Public Private Partnership Model (PPP), managed by the PPP Unit at the Ministry of Finance. The European Bank for Reconstruction and Development financed the project’s studies and the development of the tender documents and process. At the same time, a group of distinguished and specialized consultants offered their support throughout the time.
Background
DB Schenker in Egypt, El Sewedy Electric, and 3A International go back to 2016 when the former established independent partnerships with the two organizations, which eventually materialized into a strategic cooperation. In 2017, DB Schenker launched the first dual logistics program in Egypt delivered at El Sewedy Technical Academy. Additionally, the organization joined hands with 3A International to form synergies with the leading rail cargo service providers in Egypt. Further, as part of its efforts in establishing and coordinating the tender management team, DB Schenker called on the expertise of Moll Logistics Consultancy, who successfully led the development of the conceptual design, market analysis, and business modes. We express our sincere thanks and appreciation for all parties who were involved for their exemplary conduct during; what was; an exceptionally demanding process.
Features of the upcoming Dry Port
The Dry Port, which will become operational in 2022, is aimed to alleviate significant pressures from traditional seaports, such as Alexandria, Egypt’s largest and most congested port. Additionally, the hub will utilize the rail links between Alexandria and the 6th of October city, providing faster, safer, cost-effective, and more sustainable freight, while cutting customs clearance lead times.
The state-of-the-art facility is set to be the first of its kind in Egypt and the biggest in Africa, with a maximum daily capacity of 720 TEUs - a total potential of 250,000 TEUs per year. The port is expected to create 3,500 direct and indirect jobs. It will include container yards, communication and control systems, a solar energy system for electricity generation, lifting and transport equipment, tractors, railways, and UV inspection systems. Some other facilities which the hub aims to offer is an integrated customs department headquarters, along with administrative offices for the parties involved in the port project such as the General Authority for Land and Dry Ports, the project company, shipping line agents, and shipping, clearing, and transportation companies.
DB Schenker in Egypt looks forward to working with all the associated stakeholders to ensure the success of this project. We believe the incredibly exciting PPP model will prove vital for the Egyptian economy as a whole and for the transport and logistics sector in particular, as it capitalizes on the combined resources, knowledge and vision of both the public and private sectors and sets them in complete coherence towards a clear and common goal.