Egypt unveiled a plan to expand the Suez Canal's Port Said into a maritime transport hub, with potential investment of more than 30 billion Egyptian pounds (S$8.1 billion). The East Port Said project, at the head of the Suez Canal, will include construction of a so-called industrial zone and terminals for container and liquid cargoes, Transport Minister Mohamed Mansour said last Wednesday at the site. The port will handle more than 15 million containers a year by 2015, he said.
Private investors have already injected about 6 billion Egyptian pounds into the project, the minister said at a press conference, without identifying any of them. Construction will begin in 2010, he said.
Egypt is spending billions of dollars to upgrade transport infrastructure, including seaports and airports, as part of a 2004 plan to boost economic growth through overseas trade. The country expects investment in transport projects to reach $8.9 billion within the next three years.
'This port is part of a larger plan toward better development in Egypt,' according to Prime Minister Ahmed Nazif, who attended the press conference.
'We are looking forward to turning this port not only into a local centre but into an international hub for world trade.'
He insisted that the mega project is timely, even as global trade is threatened by the financial crisis. The development 'has opportunities in port construction, in infrastructure, in services, in logistic services, you name it,' he said.
'This project is actually a good alternative to investing in financial securities' because spending on 'real' projects such as Port Said can help companies to raise funds, Mr Nazif said.
He declined to comment on potential candidates to manage the port, including Dubai-based DP World Ltd, saying only that a bidding round will be held for 'several projects'.
DP World is the majority shareholder in Egypt's El Sokhna port, which serves European and Gulf markets.
'We are looking for new technology, new management styles and expertise,' he said. 'We will not only judge the offers by their financial value. It will not be assigned to any certain company.'
The auctions will start in two months, Mr Mansour said, according to the official Middle East News Agency. The first phase of the port expansion will extend the area by 12 sq km, or 75 per cent, Mr Mansour said. When completed in 2030, the port's total area will be 57 sq km, he said.
Private investors have already injected about 6 billion Egyptian pounds into the project, the minister said at a press conference, without identifying any of them. Construction will begin in 2010, he said.
Egypt is spending billions of dollars to upgrade transport infrastructure, including seaports and airports, as part of a 2004 plan to boost economic growth through overseas trade. The country expects investment in transport projects to reach $8.9 billion within the next three years.
'This port is part of a larger plan toward better development in Egypt,' according to Prime Minister Ahmed Nazif, who attended the press conference.
'We are looking forward to turning this port not only into a local centre but into an international hub for world trade.'
He insisted that the mega project is timely, even as global trade is threatened by the financial crisis. The development 'has opportunities in port construction, in infrastructure, in services, in logistic services, you name it,' he said.
'This project is actually a good alternative to investing in financial securities' because spending on 'real' projects such as Port Said can help companies to raise funds, Mr Nazif said.
He declined to comment on potential candidates to manage the port, including Dubai-based DP World Ltd, saying only that a bidding round will be held for 'several projects'.
DP World is the majority shareholder in Egypt's El Sokhna port, which serves European and Gulf markets.
'We are looking for new technology, new management styles and expertise,' he said. 'We will not only judge the offers by their financial value. It will not be assigned to any certain company.'
The auctions will start in two months, Mr Mansour said, according to the official Middle East News Agency. The first phase of the port expansion will extend the area by 12 sq km, or 75 per cent, Mr Mansour said. When completed in 2030, the port's total area will be 57 sq km, he said.