The European Bank for Reconstruction & Development (EBRD) has decided to back October Dry Port Company (ODP), a special purpose vehicle led by Egyptian Exchange-listed Elsewedy Electric to develop and operate the first inland dry port in Egypt.
The EBRD has approved a debt funding of €25 million ($29.6 million) to ODP, a joint stock company. Elsewedy owns 70% of ODP while 20% is held by SLP for Logistic Properties and the balance 10% is with Schenker Egypt.
The proposed loan is part of a total investment package of $60 million to finance the design, development, construction, and operation and maintenance of the dry port in the city of 6th of October, west of Cairo.
The port will function as an extended gateway for the deep-sea ports located in the northern and eastern regions of Egypt. It seeks to provide efficient customs inspections and clearance procedures, reduce congestion in the seaports, and create economies of scale by using intermodal rail services to and from the seaports.
Additionally, the project is also expected to transfer part of the container traffic from road to railway, thereby reducing the load on the roads both in terms of congestion and emission. At the operational stage, the project will reduce congestion at Alexandria and El Dekheila container terminals.
The project site occupies currently unused desert land, designated for industrial development and located 24 km from 6th of October City. The project will create about 1,200 direct and 350 indirect jobs during the construction phase, the EBRD said.