The Ministry of Transport is planning to offer two logistics projects for container and goods storage in North and South Sinai to the private sector over the next four years, with investments totaling approximately 17.6 billion Egyptian pounds ($338 million), a source familiar with the ministry’s projects told Al Manassa.
The source, who requested anonymity, said the two projects are part of the Arish-Taba logistics development corridor. This corridor aims to link industrial and mining areas in the heart of Sinai with ports on the Red and Mediterranean seas to boost export activity. It includes the construction of the Sinai development train, which extends 500 kilometers, alongside the development of the Port of Arish.
According to the source, “The two projects consist of establishing two logistics zones: the first in the city of Taba on an area of 80 feddans, and the second in El-Tor on 100 feddans. They will be carried out in partnership with consortia including Egyptian and foreign companies.”
The two projects will serve as zones for storing containers and goods before export, while also allowing for some light manufacturing activities such as packaging and wrapping to prepare goods before they are sent to the ports, the source added.
In October 2024, the Ministry of Transport announced the development and renovation of the first line of the development train, the Fardan-Bir Al-Abd railway, after completing infrastructure work and while awaiting the provision of signaling and communication systems.
“Companies interested in the project have pledged to submit their official bids before the end of the current year, following the completion of preliminary economic studies and coordination with local banks to explore necessary financing opportunities to contribute to the implementation of the two projects,” the ministry source said.
Incentives include simplifying licensing procedures through a unified entity and providing access to the latest regulatory frameworks to enhance the investment climate, in addition to forming an impartial committee to resolve any potential disputes, the source added.
Relevant authorities will promote the two projects locally and internationally, both before and after operation, by organizing visits for official foreign delegations to introduce the logistics services provided in cooperation with the private sector, the source explained. This aims to bolster opportunities for attracting new investments to these strategic projects.
Over the past decade, the Ministry of Transport has expanded private sector involvement in managing and operating its major projects. Two dry ports have been implemented using this mechanism in 6th of October and 10th of Ramadan cities.
The port sector has become heavily reliant on international companies to establish the superstructure for container handling terminals, while the private sector has also entered the management of services such as freight transport on railway lines.
