Kamel Al-Wazir, Egypt’s Minister of Transport, witnessed the signing of a memorandum of understanding (MoU) for the financing, design, construction, operation and maintenance of the Borg El Arab dry port and logistics zone in Borg El Arab City, covering an area of 133 feddans.
The agreement was signed between the General Authority for Land and Dry Ports (LDP) and Sky Ports. The memorandum was signed by Sayed Metwally, Chairperson of the General Authority for Land and Dry Ports, and Tarek Hussein, Chairperson of Sky Ports, in the presence of Nehad Shaheen, Deputy Minister of Transport for Maritime Transport, Ashraf El Lozy, Assistant Minister for Authorities and Companies, and Mohamed Fathy, Adviser to the Minister for Maritime Transport.
Al-Wazir said the agreement aligns with the Ministry of Transport’s strategy to implement directives issued by President Abdel Fattah Al-Sisi aimed at transforming Egypt into a regional hub for transport, logistics and transit trade.
The project also forms part of a broader national plan to establish 33 dry ports and logistics zones across Egypt, alongside seven integrated logistics corridors linking industrial, agricultural and mining production centres with seaports, while connecting ports on the Red Sea with those on the Mediterranean.
These corridors are designed to serve emerging urban communities through railway networks and major road infrastructure, passing through dry ports and logistics zones situated along the routes. The Borg El Arab dry port and logistics zone is considered a key component of the Cairo-Alexandria logistics corridor.
Al-Wazir added that the agreement reflects presidential directives to strengthen cooperation with domestic and international private sector partners across ministry projects. He noted that the project’s strategic location in Borg El Arab City will support industrial activity and improve supply chain efficiency.
According to the minister, the project is expected to enhance services for the Borg El Arab industrial zone, facilitate trade and boost exports and imports, while reducing congestion at seaports caused by container and cargo accumulation. It is also intended to improve logistics services, lower freight transport costs and strengthen connectivity between manufacturing centres, export ports and consumption markets.
The project is expected to accelerate inspection and customs clearance procedures, generate economies of scale in distribution through more efficient rail connectivity, reduce road traffic accidents and create employment opportunities for young people, he added.
For his part, Tarek Hussein, Chairperson of Sky Ports, said the signing represents an extension of the company’s longstanding cooperation with the Ministry of Transport, through the General Authority for Land and Dry Ports, and reflects growing confidence in Sky Ports’ capabilities in developing and managing logistics projects.
Hussein said the company aims to build on previous successes by delivering an integrated dry port model aligned with international standards, supporting the state’s efforts to enhance the efficiency and competitiveness of Egypt’s transport and logistics sector.
Sky Ports began operating in the logistics sector in 2015 and became the first Egyptian operator to secure a concession for the construction, management and operation of a multi-purpose terminal at East Port Said Port under Law No. 165 of 2022. Since partial operations began in February 2024, the company has handled more than 12 million tonnes of cargo, with an annual average exceeding 6.5 million tonnes.
