Egypt signs founders' agreement for 1st ship scrapping project in Arab world
Updated 12/11/2024 12:28:00 PM
Arab Finance: The Holding Co for Maritime and Land Transport and the United Company for Industry signed a founders' agreement to establish the first-ever ship scrapping project in the Arab region, as per a statement.
The project at Damietta Port, which will span an area of 2 million square meters in the West Damietta Port area, aims to scrap ships, repair vessels, and build new ships, setting a precedent not just in Egypt, but across the Arab world and Africa.
With a capacity to handle ships up to 400 meters in length and 40,000 tons in light displacement, the facility will adhere to international standards for ship recycling.
The initiative will also facilitate the conversion of old ships into recyclable materials, such as scrap metal, which can be traded globally.
The project is poised to contribute to the iron and steel industry by providing locally sourced scrap metal, which will replace the need for imports.
It also aims to recycle 1.5 million tons of scrap annually within five years, reducing Egypt's reliance on foreign scrap imports and promoting a sustainable, environmentally friendly steel production process.
This development is expected to fulfill 66% of the nation's scrap requirements for steel production, helping to reduce foreign currency dependence.
In addition to its economic benefits, the ship scrapping project is set to create around 4,000 direct and indirect jobs, further contributing to Egypt’s labor market and local economy.
The project will meet international standards for ship recycling, ensuring compliance with global conventions such as the Hong Kong and Basel conferences and the European Union's regulation on ship recycling, EU No. 2323 of 2016.
Another memorandum of understanding (MoU) was also signed between the Holding Co for Maritime and Land Transport and the United Company for Industry, further solidifying Egypt's investment climate.
This MoU will focus on establishing and managing dirty dry casting stations at Dekheila Port, reinforcing the country's commitment to expanding its industrial capabilities.
Related News
