Dubai-based port operator DP World has inked a memorandum of understanding (MoU) with the Suez Canal Authority and Egypt’s Holding Company for Maritime and Land Transport.
Under the agreement, DP World will represent the group in bidding for a government contract covering the development of an inland container depot (ICD) in Cairo’s 6th of October City.
The group will submit its bid for the contract later this year, UAE state news agency, WAM, reported, adding that DP World will serve as the ICD operator in the event that the tender is won.
The planned ICD is expected to increase the flow of cargo between ships and major land transportation networks in Egypt, creating a central distribution point.
DP World group chairman and chief executive officer Sultan Ahmed Bin Sulayem, commented: "Developing trade infrastructure to improve hinterland access for goods bound for Africa’s growing economic needs is essential.
This collaboration builds on our strategic partnership with Egypt and we look forward to working with the Suez Canal Economic Zone (SCZone) and the government’s Holding Company for Maritime and Land Transport to make it happen."
Meanwhile, Holding Company of Maritime and Land Transport Chairman Rear Admiral Mohamed Ahmad Ibrahim Youssef, said: "This partnership is aligned with Egypt’s strategy for sustainable development and the policy of the Ministry of Business Sector to increase activities and investments of its companies in projects that raise developmental levels, create jobs for Egyptian youth, and increase the profits of Egyptian companies to fuel local GDP.
“The project will serve trade in Egypt by linking inland and marine ports, like in Alexandria where the Holding Company is present through its affiliate, the Alexandria Container and Cargo Handling Company. This alliance with DP World comes as result of a previous MoU signed between our companies to cooperate in projects of mutual interest that benefit both the parties.”
Youssef added: “The presence of the SCZone as a strategic partner of DP World in Egypt’s ports will increase the project’s success chances through linking it to the economic zone to achieve developmental and investment objectives."