FILE - Chairman of the Suez Canal Economic Zone Authority Yehia Zaki
CAIRO - 20 June 2022: The head of the Suez Canal Economic Zone, Yehia Zaki, said that there is communication regarding a logistical zone that DP World wants to work on.
Zaki added in a TV interview, that land will be allocated "quickly" to DP World, and then this will be followed by work on the previously negotiated industrial zone.
"The preference now is to start a logistics zone for DP World, then discussions will turn into an industrial zone, provided that dealings in this agreement will start at the beginning of next year,” he added.
In another context, Zaki added that the strategy for the automotive industry was launched in the East Port Said region last week, which includes the establishment of the first complex on an area of more than 400,000 square meters.
He explained that Egypt aims to establish a major center for the assembly industries of cars, such as paint ovens and iron sheets, in addition to the presence of a group of companies to be part of the complete system for the manufacture of these cars.
Zaki stated that the first agreement will be with 3 companies so that the volume of production for each company ranges from 50 to 75 thousand cars per year, and therefore car production at launch will reach more than 150 thousand cars annually.
He indicated that the car production strategy in Egypt focuses on 4 main axes, including the quantity produced by these companies, the volume of investments that will be injected, the volume of export, and the production of electric cars.
With regard to green hydrogen production, the head of the Suez Canal Economic Zone said that 7 memoranda of understanding had been signed to activate this sector, adding: "We expect to conclude two or three additional memoranda of understanding."
He pointed out that the purpose of signing these agreements is to provide an opportunity for all companies wishing to deal in this activity to carry out engineering, economic and legal studies that qualify them to take a strategic decision to invest and move forward in these projects.
Zaki expected that binding contracts with companies would be concluded at the COP27 climate conference held in Egypt, while agreements with companies - which may need more time to study the project - could be signed at the beginning of next year.
He predicted that Egypt would conclude two or three binding agreements next October with companies interested in investing in green hydrogen.