The new Suez Canal Economic Zone has a range of investments planned to create the necessary infrastructure required to attract potential investors, according to Egyptian officials.
The General Authority for the Suez Canal Economic Zone (SCZone)’s North region deputy head General Mohamed Baraya, and South region deputy head Admiral Mohamed Shabaan told Zawya on the sidelines of an official visit by Prime Minister Dr Mostafa Madbouly last week that a huge amount of infrastructure work is currently taking place.
The General Authority for the Suez Canal Economic Zone is planning to increase water desalination capacity in the South zone to 250,000 cubic metres (m3) of water per day, which will require a number of new water treatment and desalination plants to be built.
The first plant, providing 20,000m3/day is due to complete in 2020 and a second, much larger plant is planned that will produce 130,0000m3/day.
An additional 300MW of electricity-generating capacity set to be delivered by 2025, with another 543MW by 2030.
This will provide the infrastructure needed to grow the SCZone’s primary industries: petrochemicals, construction, textile, transport, logistics and pharmaceuticals.
In addition, DP World is building a US $550-million container port and container yard.
"Dubai Ports World (DP World) is executing a logistics project worth $550 million. The project will raise containers (handled) to 2.9 million by 2020, instead of 1.1 million this year,” said Mohamed Shabaan, deputy head, SCZone.
He said the expansion is taking place over three phases, with the first already complete.
A joint venture company comprising the Industrial Development Group, ElSewedy Cables, Main Development Company (MDC) and the Suez Canal Economic Authority, will be created “soon” to operate and manage infrastructure projects, he added.
In the North side of SCZone, meanwhile, General Baraya said that a joint Egyptian-Russian company will be set up in April to operate and manage a 5.25 square kilometre US $7 billion Russian Industrial Zone. It will be built out in three phases over 13 years.
He said that a new terminal at West Port Said is to be built at a cost of 200 million Egyptian ($11.6 million), and that it had “already signed several contracts” with foreign investors.
“Mercedes will be one of the international companies that will be launched from the west port of Port Said (with) a new logistics centre... and there are negotiations with major, international companies to work in the east port,” he said.
French environmental firm Ecoslops has also signed a deal to build a facility to collect and treat oil residue, with the potential for a micro-refinery unit to be added.
A new roll-on, roll-off facility with a 600m quay wall will be built to support the large vehicle platform site for an alliance between carmaker Toyota, Japanese shipping line NYK and French logistics firm Bolloré.
He also said that SCZone was also working with the Holding Company for Land and Marine Transport on a study for a new 800 metre-long container terminal, CT3, with an accompanying 420,000 square metre logistics zone.