MedaPorts16 | Admiral AbdelKader Darwish

The Suez Canal Economic Zone The Main Mediterranean Bridge

Integrated Solution

Rear Admiral / Adbelkader DarwishVice Chairman

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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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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

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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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Following on from the new canal expansion project, SCZone Authorityinvested 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

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Following on from the new canal expansion project, SCZone Authorityinvested 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

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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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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


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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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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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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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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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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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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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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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The connectivity with the Ban African road (Cairo - Cape road)

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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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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 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

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Be competitive in both pricing and efficiency of operation. This includes Canal, port, and rail tariffs

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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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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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Key Messages to Mediterranean / Latin American / Silk road participating countries

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Latin American

Silk road participating countries

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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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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

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2 SCZone current role within Latin American

Integration between Med-Latin and new Silk Road comesVia Suez – Panama Route

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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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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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3 SCZone role within the Silk Road / Mega project

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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

[email protected]

www.sczone.gov.eg

mailto:[email protected]

Economy & Finance

MedaPorts16 | Admiral AbdelKader Darwish