JV FOR NEW DAMIETTA BOX TERMINAL DEVELOPMENT

A second container terminal is being developed at the Port of Damietta in north-east Egypt and joins the growing throng of new projects in the country.

The new facility, located just 62km from the northern entrance to the Suez Canal, will be known as Damietta Alliance Container Terminal SAE and is expected to commence operations in 2024. Ultimately, up to 3.3 million TEU of annual capacity is due for development.

Hapag Lloyd Damietta GmbH is taking a 39 per cent stake in the 30-year concession, with joint venture partners consisting of Eurogate Damietta (a 29.5 per cent share) and Contship Damietta Srl (29.5 per cent), with the remaining minority interest held by local shareholders.

Rolf Habben Jansen, CEO, Hapag Lloyd, explains the interest in this location. “With the new terminal Hapag-Lloyd will significantly improve its transshipment operation in the East Mediterranean market as well as access to the local Egyptian trade.”

Activity with new port developments in Egypt remains strong. Hutchison Ports is developing a new container facility at Abu Qir in Alexandria, while Abu Dhabi Ports Group has confirmed its intention to build a new multi-purpose terminal at Safaga Port and DP World is expanding Sokhna Port.

However, the interest in the Mediterranean coast is where port competition looks set to increase most. The new projects, including the new Hapag Lloyd-led facility, are in addition to existing terminal facilities including two terminals in Alexandria (in which Hutchison Ports already has an interest), at Damietta and, significantly, the Suez Canal Container Terminal (SCCT), operated by APM Terminals, which has recently increased capacity to 5.4 million TEU per annum.