Egyptian ministry announces construction of 22 logistic zones at 11 governorates

CAIRO – 9 June 2022: The Ministry of Supply and Internal Trade announced Thursday it is introducing 22 logistic zones in 11 governorates, creating 250,000 direct and indirect jobs, and hopefully, improving the flow of supply chains in Egypt.

The ministry pointed out that it has already upgraded and introduced six grinding facilities at a cost of LE308 million, raising the country's daily capacity of wheat grinding to 1,970 tons up from 850 tons.

To expand the country's wheat storage, five warehouses with a total capacity of 140,000 tons were built at LE10.2 million. That is in addition to upgrading and introducing 21 silos with a total capacity of 530,000 tons at LE60 million.

The ministry noted that it plans to make the country's capacity of wheat storage 4.3 million, given that it has to produce 250,000 – 270,000 loaves of subsidized bread daily.  

According to statements made by the ministry's spokesperson, Ahmed Kamal, in June 2021 and published by Al Ahram, Egypt owns 44 silos having a total capacity of 2.7 million tons.

Kamal added that Egypt's capacity of wheat storage rose in general from 1.6 million tons in 2011 to 3.4 million tons. That is attributed to introducing new silos and improving the wheat storage system in Egypt reducing loss to almost zero percent, after it had been up to 10 percent.

The Egyptian Holding Company for Silos and Storage, affiliated with the Ministry of Supply and Internal Trade, announced in a press release in May that there is a plan to build 60 new silos nationwide, and that the capacity of each would be 10,000 tons.

The company underscored that the new silos will be close to the production sites in order to reduce the costs of transport and fuel. It is noted that the construction of 25 silos are funded by an Emirati grant. Further, the company will expand the capacity of a number of silos in Upper Egypt to become 90,000 each instead of 30,000.

The holding company pointed out in the statement that the expansion of silos' capacities is highly needed currently, given the rise in local production of wheat so as  there has to be space for storing imported wheat that is used in the production subsidized bread.