An illustrative image. Photo courtesy of EBRD Twitter account
The European Bank for Reconstruction and Development (EBRD) disbursed a €25 million loan on Monday to support the construction of Egypt’s first inland dry port, which will be located west of Cairo in 6 of October City.
The EBRD said that the loan is directed to the October Dry Port Company, a special-purpose entity established by a consortium that includes El-Sewedy Electric, Schenker Egypt, and SLP Logistics.
The construction and development of the 6 of October Dry Port is the first to be implemented in the sector under the public-private partnership (PPP) model and the first under the EBRD’s Green Cities Programme in Egypt.
Egypt’s first inland dry port will function as an extended gateway to the deep seaports located in the northern and eastern regions of the country, as well as supporting the existing port infrastructure and logistics market.
“The 6 of October Dry Port will help make logistics more efficient, as it will become the final destination for cargo and will provide efficient customs inspection and clearance procedures. This will reduce congestion in the seaports and create economies of scale through the use of intermodal rail services at the seaports. It will also improve the overall reliability and cost-efficiency of the logistical processes for the dry port’s future clients,” the EBRD explained.
It also added that the 6 of October Dry Port will contribute to reducing road congestion, accidents, and CO2 emissions by transferring some of the container traffic off the roads and onto the railways.
Nandita Parshad, the EBRD’s managing director for sustainable infrastructure, noted that Egypt’s 6 of October Dry Port PPP is a true milestone for both Egypt and the EBRD, marking the country’s first inland dry port and setting up 6 of October City’s initiation into the EBRD’s flagship Green Cities Programme.
“It is a shining example of how we can simultaneously increase the capacity of the existing port infrastructure and logistics services while pushing forward the green agenda,” she added.
Ahmed El-Sewedy, the president and CEO of El-Sewedy Electric, said that the project is the outcome of the fruitful engagement between his group, Egypt’s government, and the EBRD.
Through the EBRD Green Cities Programme, technical assistance worth up to €350,000 will be provided to the New Urban Communities Authority and 6 of October City to prioritise and address environmental challenges and to increase gender inclusion through the development of a Green City Action Plan, 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 more than €7.7 billion in 132 projects in the country.