Egypt is moving forward with plans to develop a new storage facility and expand its port operations at two terminals in the Suez area, reports Reuters.
In a bid to reduce its reliance on imports, Egypt plans to boost its strategic wheat storage capacity and cut its US$4.5 billion food import bill.
The rationale behind this new facility is to attract investment and strengthen the country’s strategic food reserves.
Red Sea Ports Authority (RSPA) chairman, Hassan Falah said that RSPA recently issued a tender to develop a wheat storage site with a capacity of two million tonnes at the port of Adabiya.
Falah said Adabiya would augment grain storage facilities at other ports in Damietta, and Safaga, which is situated along the Red Sea.
According to Hassan: “There are a number of Egyptian banks who are willing to fund the project with any investors and one of them is the National Bank of Egypt.
He added: “In six months, the winner of the tender will be known.”
With the help of one of its major Gulf Arab backers, the United Arab Emirates, Egypt is also making progress in increasing local storage capacity.
The UAE has committed to funding the construction of 25 silos to boost storage capacity by a further 1.5 million tonnes.
Mr Falah declined to disclose the value of the project.