EGYPT – Two commodity trading companies have signed a contract with the Egyptian government to build an EGP 2.2 billion (US$140m) bulk grain terminal in East Port Said, at the northern end of the Suez Canal on the Mediterranean Sea.
Local firm Roots Commodities and Emirati company Rosa Grain will establish the facility in partnership with the Suez Canal Economic Zone (SCZone).
This dedicated terminal will be set up on an area of 267,000 square meters and will have a capacity of handling between 1.5 million tonnes (MMT) to 7.2 million tonnes (MMT) of grains per year.
Egypt wants to make Port-Said East the most competitive platform in the south and east of the Mediterranean.
In recent years, the North African country has mobilized substantial investments for the diversification of the services offered by this port.
According to the authorities, this project, which is part of the port authority’s 2025 expansion plans, should generate 400 direct and indirect jobs.
The terminal will come in handy given that Egypt is a net importer of most grains.
According to a recent Gain report by USDA, the country is set to import 13.2 MMT of wheat in 2020/21. This is aimed to meet the local demand of 20.4 MMT, partially offset by local production of 9 MMT.
The country’s local rice demand is set at 4.3 MMT against local production of 4.0 MMT, which will lead to importation of 300,000 MT of rice during the period.
Meanwhile its corn imports are forecasted to be 10.3 MMT, supplementing local production of 6.4 MMT to meet demand of 16.9 MMT.
Still in the North Africa region, Holmarcom Group, a leading diversified industrial group in Morocco recently offloaded 49% of its stake in its grain terminal operator, Mass Céréales al Maghreb (MCM) to Danish company A.P. Moller Capital (APMC), as part of its development ambitions in Africa.
MCM handles nearly half of the annual imports of bulk cereals in Morocco, through its two unloading and storage terminals located in the ports of Casablanca and Jorf Lasfar.
The company provides handling and storage services, contributing to an efficient logistics chain for key food supplies in the North African country.
With the partnership, Holmarcom Group retains 51% of stakes in MCM and will jointly pursue new investments that enable more reliable and efficient supply chains, support food security, and create sustainable jobs in African markets.
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