CAIRO: The amount of resources pumped into the compilation and presentation of a recent report on the untapped potential of international and domestic shipping in Egypt seems a clear indicator of the profits expected from this sector.
Commissioned by APL, part of the Singapore-based shipping company Neptune Orient Lines (NOL), and compiled by Frost & Sullivan, a global growth consulting company, the report bears the cheerful title “Connecting Egypt.
Optimism dominated the mood among the assembled transportation industry members who attended the presentation of the report Monday by a panel that included representatives from Egypt’s Investment and Transportation Ministries and regional heads of APL and Frost & Sullivan.
The attendance of the ambassador of Singapore corroborated APL’s high hopes for Egypt’s future as both a shipping hub and highway.
Director of NOL’s Corporate Communications, Paul Barrett, moderated the panel, which began with official statements by Osama Saleh, chairman of the General Authority of Investment. Saleh emphasized Egypt’s recent ranking among the top 10 reformers in doing business, according to the World Bank.
Goh Teik Poh, APL’s regional president for South Asia, pointed out Egypt’s good fortune in “having a government committed to enhancing its economy and the prospects of its people.
The government’s Economic Reform and Structural Adjustment Program (ERSAP) policies since the early 1990s have certainly been profitable for APL, which began operating in Egypt in 1994; in 2008 alone they made $170 million.
V.G. Ramakrishnan, Frost & Sullivan’s transportation practice head for South Asia, the Middle East and Africa, spoke as a consultant. He quoted figures on the growth of Egyptian exports, (29 percent since 2003), and the importance of the Suez Canal for global trade, (processing 10 percent of all global trade), as evidence of Egypt’s enviable position in the global shipping sector.
Trade agreements such as the US-Egypt Partnership for Economic Growth and Development, the EU partnership agreement, and the Common Market for Eastern and Southern Africa Agreement (COMESA), all represent the government’s “commendable commitment to encouraging free trade in Egypt.
He added that China is expected to take over from the US as Egypt’s largest shipping partner, and predicted a global eastward shift in global trade.
A statement of gratitude from APL’s Managing Director in Egypt, Ted Muttiah, furthered the impression that the panel offered little more than thanks and profuse congratulations to Egypt for economic resilience in the face of the financial crisis.
Asian investors, coming out after a year of economic insecurity, are reconfirming their, “long-term commitment to Egypt. in the words of Muttiah.
That long-term FDI had ever been in doubt seemed to strike a nerve in the assembled Egyptian journalists, who questioned the panel for the report’s specific findings.
The report itself appears primed to attract the eye of a potential foreign investor. Opening with a general background of Egypt’s changing economic policies and general political history, it then offers specifics on the opportunities and challenges in developing the sectors of shipping, port development, air, road, rail and inland waterway transport.
Data was collected primarily in 2008 and 2009, with some figures measuring trends for the past seven years. Sections entitled “Challenges for the Development of Infrastructure (for example, “complicated laws ), and detailed maps of various Egyptian ports indicated that the “Connecting Egypt report was compiled as a handbook for potential investors.
The findings will be made public at a meeting at the American Chamber of Commerce in Egypt the following day.
Speaking after the panel with Gene Seroka and Paul Barrett, Daily News Egypt inquired further into the reasons for APL’s Egypt enthusiasm.
“Egypt is unique, stated Seroka, “in having access to international shipping routes as well as a largely untapped internal waterway, the Nile. Egypt has established relationships with famous retailers in the US and Europe, allowing faster development of its shipping sector.
Asked to compare Egypt to India and China 15 years ago, he emphasized Egypt’s more diverse offerings make it more “exciting for investment than the export manufacture that fueled growth in east and southeast Asia.
Seroka was also eager to highlight APL’s efforts to be “more than a good corporate citizen in its commitment to reducing the carbon footprint of its shipping vessels.
