The European Bank for Reconstruction and Development (EBRD) has announced that it provided Egypt with a €1 million contribution for the construction of a dry port and logistics centre in 10th of Ramadan City.

The sum will be used in the preparation and execution of the project, EBRD said on Wednesday.

The new dry port is aims to upgrade the efficiency of Egypt’s transport infrastructure by reducing congestion at seaports and creating the conditions for accelerated customs processes and procedures, according to the EBRD.

It also added that facilitating trade in this way will contribute to an increase in the competitiveness of local producers, which will help accelerate sustainable economic growth and create employment opportunities.

The project is part of Egypt’s transport master plan, which recommends the development of an intermodal corridor extending from Alexandria on the Mediterranean coast to El-Sokhna on the Red Sea coast.

The bank said that infrastructure development is one of the strategic priorities of the EBRD and one of the pillars of its business activities.

“We are very proud to support the preparation of sustainable infrastructure in Egypt to be implemented and financed by the private sector. The dry port in 10th of Ramadan City is the second in Egypt to receive funds from the Bank’s Infrastructure Project Preparation Facility which demonstrates our commitment to this approach,” said Heike Harmgart, the EBRD’s managing director for the southern and eastern Mediterranean region.

10th of Ramadan City was founded in the 1970s in close vicinity to the capital Cairo, and is one of the most industrialised municipalities in the country.

“As a country with a growing population and economy, Egypt needs urgent investment in its infrastructure capacity to alleviate the pressure on existing ports, shipment points and trade centres. New facilities are required to reduce congestion, allow for a better distribution of goods and let trade flow freely,” according to the EBRD.

Egypt is a founding member of the EBRD. Since the start of the bank’s operations there in 2012, the EBRD has invested over €7 billion in 127 projects in the country.