Egypt signs $6 bln contracts to invest in commercial, food commodities projects

Egypt signed two investment agreements worth $6 billion to launch a Global Logistics Centre for Grain Handling and a City of Commerce and Shopping project, according to Minister of Supply Khaled Hanafy.

The projects, agreed upon during the recent Economic Summit, will see the logistics centre to be located in Damietta, with the City of Commerce project to be built in the Suez Canal area.

“These two new agreements have a strategic nature for their effect on developing the commercial infrastructure, facilitating domestic commerce and creating job opportunities,” Hanafy said after signing the agreement in Sharm El-Sheikh.

The Logistic Centre will be launched on a 3,350sqkm land in Damietta in the Delta area, and is expected to witness as much as 65m tonnes of grains and basic food commodities trade annually.

The project also includes building storage silos and two new quays that will be able to receive huge shipments in Damietta Port, in addition to building five new industrial zones.

Hanafy expects the silos to increase the port’s storage capacity to 7.5m tonnes instead of the current capacity amounting to 2.5m tonnes. Wheat, pasta, cooking oil and sugar will be produced in the industrial zone to meet domestic consumption and export needs.

Regarding the second agreement, it will cost $4bn to build the City of New Suez Canal, within the Suez Canal Corridor Development project. The global commercial city will be divided into eight areas, with each area to be linked to an internationally recognised commercial city.

Each area will include also a marina, hotels and housing units to serve investors and local residents, in addition to tourists from worldwide.

Source: Daily News Egypt