This national project serves the country's interests and offers a unique service in the region and the whole African continent.

It will involve recycling ships, building new ones, and performing repairs (planned and emergency) for up to 400-metre ships and a light displacement of up to 40,000 tons. 

The project, which spans two million square metres in the West Damietta Port, will substantially impact Egypt's economy.

Within five years of its launch, the project is expected to produce 1.5 million tons of scrap annually from ship recycling, covering 66 percent of the total scrap required for rebar production in the local market.

This will reduce Egypt's reliance on imported scrap and help save foreign currency.

The project will also create about 4,000 direct and indirect job opportunities.

Egypt produces approximately eight million tons of rebar annually, while licensed steel factories have a production capacity of 16 million tons.

However, due to a shortage of scrap in the local market, about 1.5 million tons are sourced locally, and around three million tons are imported.

The project will also involve bringing ships worldwide, recycling them, and converting them into scrap suitable for global trade, according to international standards.

During the MoU signing, Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, highlighted that this project aligns with presidential directives to enhance cooperation with the private sector.

He explained that the initiative focuses on investing in raw materials for the critical iron and steel industry, aiming to reduce the industry’s reliance on importing solid scrap by utilizing the scrap produced from this project.

Furthermore, he highlighted that the recycled scrap iron will contribute to a sustainable ecosystem for producing green steel.

He added that the project also aims to establish the first ship recycling yard for large, medium, and small ships according to international standards, enabling it to engage with major shipping and container companies.

The project will generate raw materials for steel factories by establishing an infrastructure capable of obtaining international licenses for purchasing ships, following the recommendations of the Hong Kong and Basel Conferences. Additionally, the project will comply with the European Union’s ship recycling regulations.

Both companies also signed another MoU to foster the development of investment and commercial relations, particularly in establishing and managing dry bulk terminals at ports.

This MoU aligns with the country’s broader economic development goals, including establishing and managing a dry bulk terminal at Dekheila Port.

The Holding Company for Maritime and Land Transport was created by merging the Holding Company for Maritime Transport and the Holding Company for Land Transport, following the Prime Minister’s decision No. 1499 of 2000.

Founded in 2008, the Industrial Development Group (IDG) has redefined industrial excellence by building and managing fully integrated, smart industrial parks. IDG provides local and multinational enterprises with tailored spaces and services to support complex investors while contributing to sustainable economic development.