MedaPorts16 | Admiral AbdelKader Darwish

The Suez Canal Economic Zone
The Main Mediterranean Bridge
Integrated Solution
Rear Admiral / Adbelkader Darwish
Vice Chairman

2
Contents
Suez Canal economic Zone Vision1
SCZone Ports / Logistics Infrastructure
(Key Messages for regular shipping lines & terminal
operators & Mediterranean ports)
2
Key Messages to Mediterranean / Latin American /
Silk road participating countries
3

3

4
Given that the Suez Canal at the heart of international trade, the
Government of Egypt (GOE) has embarked on a major, ambitious program
to exploit the strategic location of the Suez Canal as a catalyst for regional
development. The aim of the SCZone is encapsulated in the following Vision
To Transform the Suez Canal zone into a world-
class, global logistic hub and industrial
processing center that provides gateways to
both European and Asian markets

5
SCZone Ports / Logistics Infrastructure
(Key Messages for regular shipping lines & terminal
operators & Mediterranean ports)
2
1 Strategic Location
2 Governmental investments in ports / Logistics
3 Investment opportunities in SCZone ports
4 SCZone strategy to become a logistic hub

6
SCZone Ports / Logistics Infrastructure2
Given its strategic location alongside
one of the busiest global maritime
roads, ports and maritime services
are considered as major activities
within the SCZone region. For this
reason and to ensure integrity 6
ports had been put under the
supervision and management of the
SCZone Authority. These ports are
shown at the side map
1 Strategic Location

7
Following on from the new canal expansion project, SCZone Authority
invested more than 8 billion dollars during the last 2 years to
Expand and improve the infrastructure of the 6 ports
Constructing 4500m Quay walls in Port Saied East
Port (Depth 20m)
Dredging access channel (20m) to/from PSEP
Necessary navigational aids
Break waters
A

8
Following on from the new canal expansion project, SCZone Authority
invested more than 8 billion dollars during the last 2 years to
Improve the sea accessibility and the land connectivity to and from the ports
The recently dredged of a new side channel to Port Saied East Port
B
The currently established tunnels. (7 tunnels for trucks and trains) to
improve land connectivity to Port Saied East Port and Sokhna Port
In addition to 8 billion Dollars had been invested to double
the Suez Canal channel (finished in August 2015)

9
A final Development plan for the SCZone ports infrastructure had been
completed after months of planning and studying to fulfill all the current and
future requirements of the hall Zone surrounding the Suez Canal.
Further, a number of priority and catalyst port projects arising from this
development plan have been identified to stimulate delivery in the early
phases. These projects had been divided into short–medium and long-term
investment projects

10
Short term projects Port Saied East Port (PSEP):A
First project: Completing the superstructure, providing the equipment,
managing and operating the container terminal (marked 1) with the following
technical specifications: Quay wall Length 2000m - Depth 20m - Width 550m.
(The quay wall will be completed by the Government in March 2017)
Second project : Completing the superstructure, providing the equipment,
managing and operating the multipurpose terminal 2 (for Dry bulk – General
Cargo) with technical specification (Quay wall Length 1000m - Depth 20m -
Width 450m)

11
Third project : Completing the superstructure, providing the equipment,
managing and operating the RoRo terminal 3 with technical specification
(Quay wall Length 650m - Depth 20m - Width 450m)
It is worth noting that there is no construction risk for the investor
because SCZone Authority had already established the main
infrastructure

12
Increasing demand for PSPS Its worth noting
that PSEP has already an impressive growth rate
in spite of the global economic recession and
political unrest in the middle east
AP Moller/ Mearsk which had been awarded a concession to operate / manage
/ maintain a container terminal in the port in 2002 made a successful story and
pushed the port to be the first rank between the Levant countries and the
second rank of the growth rate between intra Mediterranean ports by 2006.
successful story

13

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Additionally, Egypt is the 5th
country in term of growth
rate and the thirteenth
country in terms of
throughput of 80 countries.
(Source Maritime review UNCTAD 2015)

15
There are greater potential growth for the planned new container terminals in
the port because of
World class infrastructure
Deeper berths/basins (20m)
Large areas for terminal and logistic activities (30 km2)
Excellent sea accessibility
Excellent land accessibility from and to the port

16
the port because of
Higher demand for all consuming
related / industrial related cargos
and related maritime services
(bunkering, ship repair …etc)
PSEP Transshipment Network
shows that it is the Only One port
Represents Connection Node
between 4 Continents
Port Said East Port Current Transshipment Network.

17
the port because of
One of the consequences of the up scaling of
shipping capacity is the potential to streamline
the number of container ports included in a
main lane port loops (the side map).
PSEP has zero deviation, This can be achieved
through greater adoption of the hub and
spoke arrangements with increasing
dependence on feeder shipping

18
the port because of
The connectivity with the Ban African road
(Cairo - Cape road)

19
Short term projects El Sokhna PortB
First project Bunkering facility (terminal / floating) will be tailored according to
investor’s business plane
Second project Designing, Constructing, Operating, Managing a break bulk
terminal

20
Medium and Long Term Projects
SCZone projects will offer several investment opportunities to build up large
bridging capacity and integrated container / dry bulk and liquid bulk terminals
in the Mediterranean

21
SCZone is adopting a strategy based on the following pillars
Maximize private sector participation1
Provide investor friendly regulation and legal oversight for the logistics
sector
2
Apply leading edge layout. Technology, EDI, logistics, operational and
management in all sectors
3
Be competitive in both pricing and efficiency of operation. This includes
Canal, port, and rail tariffs
4

22
SCZone is adopting a strategy based on the following pillars
Provide the key road, rail, port, and inland port infrastructure required to
“kick-start” the first phases of growth
5
Seek integration and links with other global logistics hubs both within the
region and worldwide including Latin America and the Caribbean
6
Develop multiple PPP investment and business partnership models
including JV’s where necessary
7

23
Summary
SCZone offers a comprehensive integrated solutions for the regular
shipping lines to redesign their own seaborn trade network
Given the advantages mentioned before
The cheapest cost of land/workers, road/rail transport,
fixed and variable fees

24
1 Mediterranean countries
2
3
Key Messages to Mediterranean / Latin American
/ Silk road participating countries
3
Latin American
Silk road participating countries

25
3
1 SCZone current role within Mediterranean countries
The History of cooperation with the
Mediterranean countries extended
within the last 3 decades through
mutual agreements with European
ports regarding maritime transport
industry related to green / agro bulk
shipping lines and European maritime
high ways. (Sea Motorways)

26
3
1 SCZone current role within Mediterranean countries
In addition, SCZone is more than ready to participate in collaboration
systems and promotion of alliances to
Help in active response of Mediterranean ports to the challenges
brought by 800 million people Via Suez – Panama Route
1
Establish a worlds global logistics platform2
Strengths the business, trade, commercial and economic ties between
Latin American, the Caribbean and the Mediterranean region
3

27
3
2 SCZone current role within Latin American
Integration between Med-Latin and new Silk Road comes
Via Suez – Panama Route
1
Latin America Trade with China represents almost 35% of its total trade2
Intra Latin America Trade rep represents around 15% of its total trade3
Latin America Trade with countries along the Maritime
Silk Route represents around 40% of its total trade
4
Suez –Panama Cooperation

28
3
2 SCZone current role within Latin American
Suez – Panama Route maximize shipments, minimize Shipping cost,
facilitates integration, and enhance Latin-Med international Openness and
diversification America Trade with countries along the Maritime Silk Route
represents around 55% of its total trade
Suez –Panama Cooperation

29
3
3 SCZone role within the Silk Road / Mega project

30
3
3 SCZone role within the Silk Road / Mega project
With the spirit of open regional cooperation, deep integration of markets, and
with the aim of achieving a balanced economy policy, SCZone can be the main
node and link between Road and Maritime Silk Road (side map).
SCZone Authority is looking for integration not competition.
On that basis the Authority is more than ready to build up strong connections
with all the participating countries and investors, provide them with necessary
data and fact sheets and answer there enquires under the cover of intra
governmental cooperation models to achieve prosperity for all

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THANK YOU
contact@sezone.gov.eg
www.sczone.gov.eg

MedaPorts16 | Admiral AbdelKader Darwish

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