EBRD finances 6th of October Dry Port in Egypt under EBRD Green Cities
The European Bank for Reconstruction and Development (EBRD) is supporting the construction of the first inland dry port in Egypt, in 6th of October City, west of Cairo, with a €25 million loan to October Dry Port Company, a special-purpose vehicle established by a consortium of El Sewedy Electric, Schenker Egypt and SLP Logistics.
The development and construction of the 6th of October Dry Port is the first public-private partnership (PPP) project in the sector and the first under the EBRD Green Cities programme in Egypt.
Egypt’s first inland dry port will function as an extended gateway to the deep sea ports located in the northern and eastern regions of the country, thus supporting the existing port infrastructure and logistics market.
The 6th of October Dry Port will help to make logistics more efficient as it will become the final destination of cargo and will provide efficient customs inspection and clearance procedures. This will reduce congestion in the sea ports and create economies of scale through the use of intermodal rail services at the sea ports. It will also improve the overall reliability and cost-efficiency of the logistical processes for the dry port’s future clients.
Nandita Parshad, EBRD Managing Director for Sustainable Infrastructure, said: “The 6th of October Dry Port PPP is a true milestone for both Egypt and the EBRD, marking the country’s first inland dry port PPP and triggering 6th 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.”
Once operational, the 6th of October Dry Port will contribute to a reduction in road congestion, accidents and CO2 emissions by transferring some of the container traffic from road to rail.
Ahmed El Sewedy, President and CEO of Elsewedy Electric, said: “We are very pleased with the successful signing of this flagship project, a new milestone in our long-term relationship with the EBRD. The project will be the first dry port PPP in the sector and is the outcome of the fruitful engagement between ourselves, the Egyptian 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 6th of October City to prioritise and address environmental challenges and to increase gender inclusion, through the development of a Green City Action Plan.
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.