The head of Egypt’s Suez Canal Authority (SCA) Mohab Mamish announced on Monday the signing of a memorandum of understanding in Dubai with Dubai Ports (DP) and the Holding Company for Maritime & Land Transport (HCMLT) to develop Egypt’s first dry port in the 6 October City on the western outskirts of Cairo at a cost of $100 million.

The MoU was signed by Mamish and Sultan Ahmed Bin Sulayem, chairman and chief executive officer of DP World Group, as well as Mohamed Youssef, the chairman of HCMLT, which follows the Egyptian Ministry of Business Sector.

A dry port, also known as an inland port, is an intermodal terminal directly connected by road or rail to a seaport and operates as a transshipment centre for sea cargo to inland locations.

The MoU states that DP will operate the project and take the lead in bidding procedures given its extensive experience in operating more than 78 land and sea ports around the world, according to the CEO of DP.

Sultan added that the memorandum comes as a result of the historic partnership between Egypt and DP, who have cooperated for many years in Egypt's Sokhna port region.

“Then project will be an important logistics hub to serve trade by linking with sea ports, especially the Port of Alexandria,” said chairman of HCMLT Youssef.

Egypt is working to attract international investors to the Suez Canal Economic Zone to boost job creation and economic growth.

Mamish also said that rapid progress is being made on reaching development agreements for expanding Egypt's industrial shipping zones in Port Said and Ain Sokhna.

Last Month, Egypt’s Minister of Industry and Trade Tarek Kabil affirmed that negotiations are progressing smoothly between Egypt and Russia on establishing a Russian Industrial Zone in eastern Port Said.