**Cairo**: A major partnership has been formed between CMA CGM and October Dry Port to elevate Egypt’s logistics capabilities. This strategic agreement marks CMA CGM’s significant investment and aims to improve cargo operations, aligning with Egypt’s industrial growth and sustainability goals.
Following a notable state visit to Egypt by French President Emmanuel Macron, a significant strategic partnership was established between the CMA CGM Group and October Dry Port (ODP). The agreement, inked in the presence of H.E. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, aims to enhance Egypt’s logistics infrastructure and supply chain capabilities.
The partnership entails the CMA CGM Group acquiring a 35% share in ODP along with a management agreement, enabling the global shipping and logistics company to play an active role in the operational and developmental aspects of the logistics and rail platform at the port. The finalisation of this agreement is contingent upon the fulfilment of standard closing conditions and the necessary regulatory approvals.
The signing of the agreement took place during a formal ceremony attended by Christine Cabau Woehrel, Executive Vice-President Assets and Operations of CMA CGM, and Eng. Ahmed Elsewedy, President and CEO of Elsewedy Electric, alongside senior officials from both organisations. This collaboration aims to enhance port operations, streamline cargo movements, and deliver comprehensive logistics services, particularly to customers in Egypt’s burgeoning industrial sectors.
ODP, recognised as Egypt’s inaugural dry port and the first public-private partnership (PPP) project within the nation’s transport sector, was developed and is operated by Elsewedy Electric in collaboration with the General Authority for Land and Dry Ports (GALDP). The European Bank for Reconstruction and Development (EBRD) provided funding for this venture, which commenced operations in November 2023. The facility has earned accolades for its sustainable design and operations, aligning with Egypt’s green transformation strategy, notably receiving the “Best Sustainable Infrastructure Project” award.
Strategically positioned in the New Industrial Area of 6th of October City, ODP is directly connected to all Egyptian seaports, acting as a vital logistics hub. The facility is expected to expedite cargo clearance, alleviate congestion at seaports, and bolster Egypt’s growing industrial and export landscape.
Through this agreement, CMA CGM aims to utilise ODP’s advanced facilities, extending its services to an expanding clientele in Greater Cairo and Upper Egypt. The Group will provide integrated inland transportation, customs clearance, and advanced logistics solutions. Already operating the Tahya Misr container terminal at the Port of Alexandria and preparing to open a new terminal at Sokhna early next year, CMA CGM is further consolidating its strategic foothold in Egypt, reinforcing the Mediterranean and Red Sea logistics landscape with innovative intermodal solutions. Regular rail services are also anticipated to be established between the major seaports of Alexandria and Ain Sokhna, enhancing the competitiveness of intermodal solutions for Egyptian customers.
During the signing ceremony, Minister El Wazir highlighted Egypt’s openness to international collaboration, noting CMA CGM’s established strategic cooperation, particularly through its management of the “Tahya Misr” multipurpose terminal inaugurated by President Abdel Fattah El-Sisi in June 2023. He reiterated calls for CMA CGM and other international entities to increase investments within Egypt, taking advantage of the promising investment climate.
Christine Cabau Woehrel expressed the significance of the partnership, citing it as an opportunity to develop low-emission intermodal solutions in Egypt with efficient rail connections. “This new investment confirms the Group’s long-term commitment to Egyptian supply chain growth,” she stated.
Ahmed Elsewedy welcomed the collaboration, calling it a transformative milestone for ODP’s position as a national and regional logistics hub. He affirmed that their mutual vision for sustainability makes this partnership particularly impactful.
The signing of this agreement not only reinforces Egypt’s role as a regional logistics gateway but also supports its broader objectives of fostering industrial growth, promoting sustainable development, and establishing global trade connectivity.
Source: Noah Wire Services
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