The Minister of Supply and Internal Trade, Khaled Hanafy, announced Monday that his Italian counterpart has welcome Italian-Egyptian collaboration on a logistics centre project. The alliance will create cooperation for the building of silos and logistics areas, as well as the development of barns for storing wheat.
The announcement came after a meeting was held in Cairo with a delegation from the Italian Embassy.
Marco Platzer, director of the Italian Embassy’s Development Cooperation Office, senior agricultural expert Ismail Faramawi, and deputy director of the Technical Cooperation Unit Yassin Mubarak, were all present at the meeting.
After the meeting, Hanafy said the Italian delegation offered to establish logistics areas for collecting and storing grains, vegetables and fruits. Large quantities of those products will be available at consumer outlets and wholesale stores at reduced prices suitable to match the incomes of low paid workers. The new barns will aid in reducing the amount of wheat that goes to waste due to environmental exposure, allowing for the production of subsidised bread at a better quality.
Hanafy added that Jordan, Sudan, Ethiopia and Rwanda are also interested in investing in the logistics and the commercial projects.
On 29 October, Hanafy announced that a Russian firm offered to create a consortium with Egypt investing in the Global Logistics Center Project, and offering to supply the project with the required equipment and machinery.
Technical studies for the logistics project, as well as a commercial and shopping, area have been completed, according to Hanafi.
The minister’s comments came during a seminar held by the Egyptian Business Association (EBA) on Sunday, regarding studies conducted by experts and university professors.
The new projects will focus on a global logistics centre for handling and storing grain and food commodities and the commercial and shopping area project.
Hanafy added that great economic, social and national returns will be gained from those two projects, specifying that those plans will let Egypt become a global logistics hub. They will allow for Egypt to secure its local food consumption and for other countries in the region.
The minister added that President Abdel Fattah Al-Sisi gave the green light for the global logistics centre project in Damietta, to be started next month and finishing in two years. The project will involve storing and handling grain and food commodities as well as the packing of oil seed crops, unrefined oils, raw sugar and grains. The trading volume of the products will reach approximately 65m tons per year, with total investments needed at about EGP 15bn.
The commercial and shopping area project will commence shortly, with its area located near the new Suez Canal axis. The execution process will take approximately four years, with the potential for its completion in less time. Funds for this project may reach about EGP 40bn and will require a space of 4.2m square metres.
Hanafi said they have received many investment offers from Arab and international investors and companies for both projects.
A Ministry of Supply spokesman, Mahmoud Diad, said Monday that investment offers were made by several countries including the UAE, Saudi Arabia, the US and South Korea. He did not, however, specify the names of the companies that are willing to invest in the projects.