Qalaa Holding is set to expand its Nile transportation project to Adabiya port and Damietta port, located on the western shore of Suez Bay, Managing Director of Qalaa Holding for transportation and logistics Karim Sadek told Daily News Egypt.
“The company is ready to start its operations in Adabiya and the next step will be to go to Damietta,” Sadek said.
The Alexandria port had an issue regarding delays, the company official noted, explaining that the docks were insufficient for the volume of ships and products, so ships were forced to wait for about 10 to 20 days.
“We offered a new service; which is to unpack those ships on barges so it minimises the waiting time, and products arrive in Nubaria port form the Alexandria port faster,” he said.
The company has been working in Alexandria for the past two years.
“The only challenges the company faces is when there are general obstacles standing in the way of trade,” Sadek said. He added that during the three months of spring, the issue of shortage of foreign currency negatively affected trade and so products were not being imported.
Annual revenues from the Rift Valley Railways project ranged between $100m-$110m.
“This is because it is in an unsubsidised market, so the cost of transportation is high,” Sadek said. “It [the project] offers a solution that can compete with other means of land transportation.”
Sadek noted that the containers can travel longer distances, and are safer than trucks in terms of being subjected to theft.
The investment plan for the project was set at for a period of five years.
“Around $200m were invested so far [in four years], while the remaining $100 will be invested in the upcoming period [around a year],” Sadek said, explaining that an additional plan of investment will be placed.
The company has allocated its investments in developing the infrastructure, equipment purchases, train cars renovations and human resources development.
The company is waiting to review the Suez Canal Development project’s master plan prior to showing interest.
In June, the company announced that it signed an agreement with Financial Holding International (FHI), with which FHI will help Qalaa Holding sell some of its untapped assets. In February, the company stated that it is aiming to raise $300m in the medium term through exiting non-core projects.