In a step to develop the international port industry, a joint company between General Authority of Suez Canal Zone and DP World was agreed on Wednesday.
Egyptian President Abdel Fattah Al Sisi received Sultan Ahmed Bin Sulayem, Chairman of the Board of Directors and CEO of DP World Group, and approved the new company.
During the meeting DP World said it would establish the company to implement a series of projects in the region. Chairman of the Suez Canal Authority Eng. Mahab Mameish was also present.
The Egyptian President expressed Egypt’s great appreciation for the UAE and its wise leadership, praising the UAE’s support for the will of the Egyptian people.
The president stressed that the Egyptian government will provide all aspects of support to start the projects as soon as possible.
The Canal is one of the most promising areas in the Arab Republic of Egypt due to its logistical and strategic location in the world.
During the meeting, Sultan Ahmed Bin Sulayem reviewed the company’s activities in Egypt, which manages Sokhna port.
There are 78 sea and land ports managed by 40 other countries in the world.
He stressed the company’s keenness to implement an integrated investment plan in Egypt.
Sulayem hoped that DP World would enhance its activities in Egypt and develop its investments in the economic zone through the establishment of an integrated industrial, logistic and commercial zone including all services and residential and recreational areas.
Sulayem added: “following the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai we are establishing this joint company in cooperation with the General Authority of Suez Canal Zone in support of the Egyptian economy. We will share our experience and best practices in the port industry field to support this project and enhance our strategic partnership with our Egyptian brethren.
Sulayem pointed out that the Suez Canal is one of the most distinguished areas in the world economically, as well as its proximity to various international markets and the acquisition of a large part of the trade movement universally, especially since the Canal represents the backbone of maritime transport at the international level.
The announcement to establish this development joint company received big attention being a strategic partnership between DP World and the General Authority of Suez Canal Zone. DP World will use its world class experience in port development to make the project a success inspired by great models including the development of Jebel Ali Free Zone (JAFZA) which was a nuclus that attracted residential and touristic built areas around it.
Jebel Ali Port operated by DP World UAE Region, is the largest marine terminal in the Middle East and the flagship facility of DP World’s portfolio of over 65 marine terminals across six continents. Strategically located in Dubai, Jebel Ali port is at the crossroads of a region providing market access to over 2 billion people. As an integrated multi-modal hub offering sea, air and land connectivity, complemented by extensive logistics facilities, Jebel Ali Port plays a vital role in the UAE economy. It is a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expansions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.
Jebel Ali port has been voted “Best Seaport in the Middle East” for 20 consecutive years and is ranked the 9th largest container port worldwide. It has the world’s largest man-made harbour. DP World UAE Region portfolio includes Jebel Ali Port, Mina Rashid Cruise Terminal and Coastal Berth, and Al Hamriya in Dubai city.
In 2016, DP World revenue grew 4.9% and adjusted EBITDA increased 17.4% with adjusted EBITDA margin of 54.4%, delivering profit attributable to owners of the Company, before separately disclosed items, of $1,127 million, up 27.6%, and EPS of 135.7 US cents. On a like-for-like basis, revenue grew 1.3%, adjusted EBITDA increased by 6.6% with adjusted EBITDA margin of 52.6%, and attributable earnings increased 6.2%.
DP World Sokhna sits just south of the Suez Canal on the Red Sea on one of the world’s busiest maritime trade routes – from Asia to the Middle East and beyond, to Europe.
Sokhna is the closest port to Cairo, with its 18 million consumers only 120km distant, and is linked by a modern six-lane highway and extensive rail links. Most of the cargo from the east destined for Egypt is imported via Sokhna. As well as attracting vessels coming from Europe with cargo for Egypt, there is existing trade for empties destined for the East.
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