DP World acquires 90% stake in key Egyptian port operator

Dubai: DP World yesterday said it had acquired a 90 per cent stake in ECHCO, the controlling shareholder of Sokhna Port Development Company (SPDC), entering the Egyptian market.

Sokhna is the closest container port to Cairo and is expected to have a capacity of 1.2 million TEU by the end of 2009. The port is located in the 90 square kilometre North West Suez Economic Zone.

DP World has invested Dh2.4 billion ($670 million) to acquire the controlling interest. The remaining 10 per cent will be owned by Amiral Holdings.

Captain Osama Al Sharif will remain chairman of the port and an active partner in the enterprise through Amiral Holdings.

"Egypt is the largest economy in North Africa and rapidly becoming a major force in the region, with foreign direct investment growth of 65 per cent per annum since 2000. Sokhna will continue to play a significant role in supporting this growth, serving as a gateway for the growing Egyptian industrial base and consumer demand," said DP World chairman, Sultan Ahmad Bin Sulayem.

"We believe the port and free zone have an exciting future and we look forward to contributing to that future, bringing our expertise from across the group to operations at Sokhna," said Jamal Majid Bin Thaniah, DP World executive vice-chairman and group CEO of Port & Free Zone World.

Gateway for Egypt-Asia trade

The port serves Cairo, which has a population of more than 17 million, and is also situated directly on the main East-West arterial trade route at the southern entrance to the Suez Canal.

Sokhna is located within an expanding free zone, which has attracted international interest, with over $2 billion invested since it commenced operations in 2003.

The port is directly connected to Cairo via a six-lane highway and has direct rail links to the rest of Egypt.

Together with its location at the southern entrance to the Suez Canal, these factors combine to make Sokhna the premier gateway for the Egypt-Asia trade, which has grown approximately 20 per cent a year over the past five years.