DP World, the fourth largest ports operator globally, plans to develop an industrial and residential zone in Egypt’s Sokhna overlooking the Red Sea’s Gulf of Suez in partnership with the Suez Canal Economic Authority, the company said on Tuesday.
DP World didn’t disclose the cost of the project, in which it will hold a 49 per cent stake. Construction is expected to start in the first quarter of next year, but the ports operator didn't provide a time frame for completion. Spanning a 95 square kilometres area, the zone near the Suez Canal will include a residential zone stretching 20 square kilometers and housing 500,000 people when completed.
"The development of the zone will support the sustainable growth of the country and help it attract more business investment,” said Sultan Ahmed bin Sulayem, group chairman and chief executive of DP World. “It will also help transform the Suez Canal into a major trade and business hub in the region, given its strategic location and role as an artery for global trade.”
The industrial area will feature light and medium-sized industries, logistics, and service utilities, targeting sectors that include medical, electronics and communications, construction materials, textiles, automotive parts, food processing, energy production components and petrochemicals. The project is expected to create more than 400,000 jobs.
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“The project includes a comprehensive economic zone in Sokhna including an industrial free zone and a number of development projects that will boost the national economy and create jobs for Egyptian youth,” said Mohab Mamish, chairman of the Suez Canal Authority and chairman of the Suez Canal Economic Zone. “This is an important step in Egypt’s industrial and economic growth journey, while taking advantage of the strategic location of the Suez Canal.”
DP World signed last month an agreement with Egypt’s Red Sea Ports Authority to double the capacity of port it manages in Sokhna, which is adjacent to the new specialized economic zone. The Dubai-based ports operator will also sign a new 35-year concession agreement for managing the Sokhna port that will replace the original one struck in 2007 after the completion of the expansion project.
