DP World Sokhna to be Egypt’s hub for construction material imports
CSCEC and COSCO to build the central business and financial district of Egypt’s $45bn administrative capital
DP World Sokhna has entered into a trilateral partnership with the China State Construction Engineering Corporation (CSCEC), and the China Ocean Shipping Company Ltd (COSCO) to serve as the hub for all construction material imports.
The imported material will be used to build the central business and financial district of Egypt’s administrative capital.
Located approximately 50km east of the current capital Cairo, Egypt’s new administrative capital will cover an area of 700km2 and will accommodate 6.5m people, when completed.
As a driver for economic growth, job creation, and urban transformation, the new capital will be a $45bn (AED165.28bn) mega-project and one of the key development projects rolled out by the Egyptian government. The government plans to relocate ministries, parliament, and civic institutions to the new capital.
As part of the agreement, China’s largest construction conglomerate, CSCEC, and the company in charge of developing the central business and financial district in the new capital, will benefit from Sokhna’s proximity to the capital and its advanced road and rail links.
In addition, the port’s strategic location below the southern entrance to the Suez Canal, on the Red Sea, will act as a key gateway for Asia, Europe and other international markets.
Commenting on the agreement, chief executive officer and managing director of DP World Middle East and Africa, Suhail Al Banna, said: “Our strategic partnership with the CSCEC and COSCO provides the opportunity for DP World Sokhna to expand its role in supporting Egypt’s economy by serving as the exclusive port for all of the central business district’s cargo, and ultimately, companies who will be setting up their operations in the new capital.”
Al Banna added: “As a major gateway for Egypt’s trade, we look forward to utilising DP World’s robust capabilities to handle cargo transiting through the important East-West trade route.”
The signing ceremony was held at CSCEC premises in the New Administrative Capital near Cairo, and attended by the CEO of DP World Sokhna, Ajay Singh; the commercial manager of DP World Sokhna, Alia Gammal; the general manager of CSCEC Egypt, Chang Weicai; the vice president of COSCO Shipping Europe GMBH, Tiang Dong; the chairman of the Management Board, Lin Ji; and the managing director of COSCO Egypt, Fan Jue.
DP World Sokhna marked its 10th year anniversary by announcing a major expansion through Basin 2, a move which brought DP World’s total investment in Egypt to $1.6 billion.
When completed in Q2 2020, Basin 2 will nearly double capacity at the port to 1.75m TEUs per year.