Daily News Egypt

Sokhna Logistics negotiates with 3 banks to work in first automotive logistics zone - Daily News Egypt

Advertising Area

Advertising Area

Sokhna Logistics negotiates with 3 banks to work in first automotive logistics zone

Company aims to attract foreign companies to maximise business: ElSayed

Media Advisor to Sokhna Logistics, Emad El Sayed, said that the company will establish the first logistics area in Egypt to serve the automotive sector, and all heavy and light transportation means, on a total area of 260,000 sqm in the Suez Canal Economic Zone (SCZone).

In an interview with Daily News Egypt, ElSayed said that the company completed the project blueprints, and received all the necessary work permits, as it will begin implementation in the coming months, before the end of this year.

The project’s importance is its ability to solve problems facing car imports, such as the long delay in the ports of Alexandria and Damietta, he pointed out.

According to ElSayed, car import companies are suffering from the high cost of waiting in yards at ports by paying floor fees, other than the lack of storage space, which forces companies to resort to renting areas in dry ports at high costs.

“The project provides spaces for companies on usufruct rights for up to 40 years, tailored to each company’s needs, therefore cutting their costs,” he explained.

One of the most prominent features of the SCZone is that companies can postpone the payment of customs on cars until they leave the logistics area as needed, stated the media advisor.

The area is close to Cairo and the New Administrative Capital, roughly 40 km away. It will also participate in the development of SCZone in the coming period.

ElSayed explained that the company negotiated with three banks to be present in the zone to provide financial services to companies. It is also currently in negotiations with Arab and foreign companies to work at the SCZone.

The logistics zone in the SCZone is a gateway to the outside world, especially Africa, and can be used for car storage, transit and re-export, he indicated.

Throughout the region, companies can supply their products at any time from their warehouses, rather than waiting for imports to carry out their contracts.

Sokhna Logistics looks forward to providing innovative solutions in the automotive field and developing models which encourage linking all sector partners and investors to promote growth through creating an attractive environment, remarked ElSayed.

He pointed out that the project will have a special customs zone, with attractive investment rules.

The company aims to serve car showrooms through establishing warehouses with international specifications, exhibitions and depots for heavy equipment and accessories, and will be managed by a specialised logistics operator.

The zone will provide solutions to the car market in Egypt, at the level of import and re-export, and regulate the transport movement within the SCZone, he elaborated.

Additionally, ElSayed stressed that the zone is located in one of the most important contact sites between the world continents, within the Belt and Road Initiative, which will encourage both foreign and Egyptian investors to increase their investments in the SCZone.

Cube Consultants Engineering announced it was responsible for designing the Sokhna Logistics zone, which will be established on an area of 260,000 sqm with investments worth EGP 2.5bn.

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter