CAIRO - 11 December 2024: In line with presidential directives to strengthen collaboration with the private sector, Egypt's Minister of Transport, Kamel El-Wazir, witnessed the signing of the first-ever ship recycling project agreement in Egypt, located at Damietta Port.
The agreement marks a significant step toward the country's economic and industrial development.
The contract, signed between the Holding Company for Maritime and Land Transport and Al-Wahda Industrial Development Company, will establish a company dedicated to managing the region’s first ship recycling facility. This project aims to dismantle ships and build new vessels, as well as repair both planned and emergency repairs for ships up to 400 meters in length and a light displacement of 40,000 tons.
The facility, covering an area of 2 million square meters in the west of Damietta Port, will serve as a regional hub for ship recycling and meet international standards.
Minister El-Wazir emphasized that the project would bring global ships to Egypt for recycling, turning them into scrap metal that can be traded worldwide in accordance with international standards. The project is considered a national initiative that aligns with Egypt's economic goals, supporting industrial and environmental sustainability.
El-Wazir also highlighted that the project would significantly contribute to Egypt's iron and steel industry by supplying raw materials for steel production. By using recycled steel from ship scrap, the project will support the production of "green steel" and reduce reliance on imported raw materials.
Additionally, the project will create approximately 4,000 direct and indirect job opportunities. It is expected to produce 1.5 million tons of scrap steel annually within five years of operation, which will meet 66% of the domestic scrap demand for rebar production, thus reducing Egypt's dependency on imported scrap and conserving foreign currency.
Furthermore, El-Wazir witnessed the signing of a Memorandum of Understanding (MoU) between the Holding Company for Maritime and Land Transport and Al-Wahda Industrial Development Company, aimed at strengthening investment and commercial relations. The MoU focuses on the development of dry bulk unloading stations at ports, including the establishment of a dry bulk handling station at Dekheila Port, contributing to national economic growth.
This project is expected to play a crucial role in Egypt's push to boost local industries, create jobs, and support sustainable economic development in line with the country's long-term goals.
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