Egypt plans to create a massive global logistics center in Damietta to handle and store grain and other food commodities. Several countries are joining in the efforts and investing in the 15-billion pound project. The logistics center is supposed to increase the annual capacity of food commodity trading in Egypt by triple and benefit several countries around the world. Both Italy and Russia are major investors, but the U.S. has also shown an interest in the logisitics center project.Damietta is the proposed location of the logistics center because of Damietta Port and the close proximity to the Suez Canal. Technical and commercial studies have been conducted on the logistics project and it is expected to be a major game changer in the trading industry. The logistics center will have silos, barns, and other machinery to preserve and store food commodities such as wheat. The project will begin sometime next month and take upwards of four years to complete. A smaller portion will be operational after two years.
At the beginning of November, Khaled Hanafy, the minister of Supply and Internal Trade in Egypt, met with Marco Platzer from the Italian Embassy’s Development Cooperation Office and other Italian directors to discuss the logistics areas and their collaboration together. Khaled Hanafy also confirmed that a holding company in Russia is going to supply all of the machinery and equipment needed for the project.
The logistics center is a major project that will take the cooperation of several countries. The Ministry of Supply said investment offers were also made by Saudi Arabia, UAE, the U.S., and South Korea. Bechtel, a US-based engineering and construction company, has expressed interest in funding the logistics projects but this has not been finalized yet. Investors will likely come from several place. The venture is expected to be a huge success.
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