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Rain Global commissions Deloitte to evaluate RGS Egypt - Daily News Egypt

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Rain Global commissions Deloitte to evaluate RGS Egypt

US partner is exiting due to export constraints, says head of RGS


Waleed Abouraya, president of RGS Egypt Limited, operating in coal trading, said that RGS Egypt commissioned Deloitte to evaluate the company’s current factory in the Free Zone at Al-Adabiya Port seeking to exit, based on the decision of the main contributor US Rain Global Services LLC.

 

RGS was established in the early 2000s in partnership with local investors in US Rain Global Services LLC to meet the coal demand in Egypt and the Middle East.

The US partner desires to exit RGS due to the company facing problems with regards to exporting to the region’s markets, Abouraya said. He noted that hindered production is near 50% of the total production size.

Abouraya explained that those restrains include decisions made by the Ministry of Environment regulating coal handling at ports. Abouraya addressed Environment Minister Khaled Fahmy on cargo in ports, but shipments have remained stacked for several months.

 

The Ministry of Environment issued new controls and standards for coal trading and handling in August. These measures organise the oversight on ports’ reception and storage of coal shipments. The Egyptian market consumes around 3m tonnes of coal per year, but consumption is increasing as cement factories are now allowed to use coal as a source of energy.

 

The head of RGS said that the evaluation is likely to set the value at EGP 200m. The factory covers an area of 16,000 sqm. It is located 5 kilometres away from Al-Adabiya Port and 30 kilometres from the port of Ain ​​Sokhna.

 

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https://www.dailynewsegypt.com/2016/06/11/rain-global-commissions-deloitte-evaluate-rgs-egypt/
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