The European Bank for Reconstruction and Development (EBRD) has approved a senior loan of up to $29.6m (€25m) in favour of the October Dry Port Company (ODP), a joint stock company established in Egypt.
The proposed loan is part of a total investment package of $60m to finance the design, development, construction, operation and maintenance of the 6th of October Dry Port (DP6).
The latter represents the first land dry port in Egypt, and is located in Sixth of October, west of Cairo.
The project will be the City’s “trigger investment” under the EBRD Green Cities Framework 2 Window 2, formally initiating Sixth of October’s participation in the programme.
It also enables the commencement of developments in the Green City Action Plan (GCAP) in Sixth of October City, with the New Urban Communities Authority (NUCA) on board.
The proposed project will be the first public-private partnership (PPP) in the sector, and will finance the development and construction of the DP6, which will provide support to the existing port infrastructure and logistics market.
The DP6 will function as an extended gateway for the deep-sea ports located in the northern and eastern regions of Egypt. The port will serve as the final destination for cargo whilst providing efficient customs inspections and clearance procedures, reducing congestion in the seaports.
This is in addition to creating economies of scale by using intermodal rail services to/from the seaports, to improve the overall reliability and cost-efficiency of the logistics processes of the dry port’s future clients.
Additionally, the project is also expected to transfer part of the container traffic from road to railway. As a result, it will realise many social, environmental, and economic benefits, such as reduced road congestion, accidents, and environmental emissions.
In particular, the project will lead to significant greenhouse gas (GHG) savings and reduce air pollutants, which is consistent with the Green Economy Transition (GET) Approach.