The Suez Canal Economic Zone The Main Mediterranean Bridge
Integrated Solution
Rear Admiral / Adbelkader DarwishVice 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
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3
Suez Canal economic Zone Vision1
4
Suez Canal economic Zone Vision1
Given that the Suez Canal at the heart of international trade, theGovernment of Egypt (GOE) has embarked on a major, ambitious programto exploit the strategic location of the Suez Canal as a catalyst for regionaldevelopment. 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 industrialprocessing center that provides gateways toboth European and Asian markets
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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 alongsideone of the busiest global maritimeroads, ports and maritime servicesare considered as major activitieswithin the SCZone region. For thisreason and to ensure integrity 6ports had been put under thesupervision and management of theSCZone Authority. These ports areshown at the side map
1 Strategic Location
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SCZone Ports / Logistics Infrastructure2
Following on from the new canal expansion project, SCZone Authorityinvested more than 8 billion dollars during the last 2 years to
2 Governmental investments in ports / Logistics
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
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SCZone Ports / Logistics Infrastructure2
Following on from the new canal expansion project, SCZone Authorityinvested more than 8 billion dollars during the last 2 years to
2 Governmental investments in ports / Logistics
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)
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SCZone Ports / Logistics Infrastructure2
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
3 Investment opportunities in SCZone ports
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
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 followingtechnical 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 – GeneralCargo) with technical specification (Quay wall Length 1000m - Depth 20m -Width 450m)
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
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
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
Increasing demand for PSPS Its worth notingthat PSEP has already an impressive growth ratein spite of the global economic recession andpolitical 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 andpushed the port to be the first rank between the Levant countries and thesecond rank of the growth rate between intra Mediterranean ports by 2006.
successful story
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
Additionally, Egypt is the 5thcountry in term of growthrate and the thirteenthcountry in terms ofthroughput of 80 countries.(Source Maritime review UNCTAD 2015)
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
There are greater potential growth for the planned new container terminals inthe 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
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
There are greater potential growth for the planned new container terminals inthe 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.
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
There are greater potential growth for the planned new container terminals inthe port because of
One of the consequences of the up scaling ofshipping capacity is the potential to streamlinethe number of container ports included in amain 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
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
Short term projects Port Saied East Port (PSEP):A
There are greater potential growth for the planned new container terminals inthe port because of
The connectivity with the Ban African road (Cairo - Cape road)
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
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
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SCZone Ports / Logistics Infrastructure2
3 Investment opportunities in SCZone ports
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
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SCZone Ports / Logistics Infrastructure2
4 SCZone strategy to become a logistic hub
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
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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
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SCZone Ports / Logistics Infrastructure2
4 SCZone strategy to become a logistic hub
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
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Seek integration and links with other global logistics hubs both within the region and worldwide including Latin America and the Caribbean
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Develop multiple PPP investment and business partnership models including JV’s where necessary
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SCZone Ports / Logistics Infrastructure2
4 SCZone strategy to become a logistic hub
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
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1 Mediterranean countries
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3
Key Messages to Mediterranean / Latin American / Silk road participating countries
3
Latin American
Silk road participating countries
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Key Messages to Mediterranean / Latin American / Silk road participating countries
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)
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Key Messages to Mediterranean / Latin American / Silk road participating countries
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 challengesbrought by 800 million people Via Suez – Panama Route
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Establish a worlds global logistics platform2
Strengths the business, trade, commercial and economic ties betweenLatin American, the Caribbean and the Mediterranean region
3
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Key Messages to Mediterranean / Latin American / Silk road participating countries
3
2 SCZone current role within Latin American
Integration between Med-Latin and new Silk Road comesVia 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
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Suez –Panama Cooperation
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Key Messages to Mediterranean / Latin American / Silk road participating countries
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
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Key Messages to Mediterranean / Latin American / Silk road participating countries
3
3 SCZone role within the Silk Road / Mega project
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Key Messages to Mediterranean / Latin American / Silk road participating countries
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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