As stated by the IFC, the Project is a container terminal with capacity of 3.3 million Twenty-foot equivalent unit located in Damietta Port on the Mediterranean Sea in Egypt. The Project will be carried under a 30-year Concession Agreement granted by the Damietta Port Authority under the Ministry of Transport. Construction is expected to begin in end of 2023 with initial operations expected to commence in January 2025.

The Damietta port is located on the East-Mediterranean Sea, at around 70km from the Suez Canal and 200km from the Greater Cairo Area. The port began operations in 1987 and currently operates seven terminals.

IFC is considering a financing of up to US$ 125 million A-loan and interest rate swaps of a loan equivalent exposure of up to US$10 million, for the brownfield expansion of a second U-shaped 3.3 Million Twenty-foot Equivalent Units container terminal. This new terminal would occupy an area of 91 hectares (~12%) of the Damietta port. The project will be designed to accommodate the loading and unloading of large container ships (at a length of 400m) and will include 8 berths (with a total of 1670m); 12 shore-to-ship cranes; 40 rubber-tired gantries; 16 spreaders; 12 lashing cages, space for temporary loading and unloading, and support facilities (e.g., office buildings, workshops, etc.). Once completed, CT-II will act as a transshipment hub in the East-Mediterranean basin for approximately 80% of the containers received, with the remainder serving the main consumption areas via the national road network. The project construction is expected to take up to 24 months starting construction in December 2023.

The early development of the infrastructure for CT-II, including land excavation and foundation works; construction and maintenance of the quay walls; and dredging of the access channel and basin, will be led by the DPA and is outside the scope of the proposed IFC investment but are considered associated facilities as per IFC Performance Standards.

As stated by the IFC, the Project will be developed by Damietta Alliance Container Terminal S.A.E., a special purpose vehicle incorporated in Egypt, owned (39%) by Hapag-Lloyd AG (“HLAG”), (29.5%) by Eurogate International GmbH (“Eurogate”), and (29.5%) by Contship Italia S.p.A. (“Contship”), and 1% by Middle East Logistics & Consultant Group S.A.E and Ship & C.R.E.W. S.A.E each.

HLAG is one of the largest ship liners and operates the fifth-largest fleet of container ships worldwide. By the end of 2022, HLAG had c. 14,200 employees in more than 400 offices in 135 countries, and its vessels carried 11.8 MTEU, on par with 2021. HLAG is also a founding member of THEA, one of the biggest shipping alliances worldwide, which includes HLAG, Yang Ming, Ocean Network Express, and Hyundai Merchant Marine.

Eurogate is a top 15 independent operator of container terminals in Europe with twelve terminals located in Germany, Russia, Italy, Portugal, Cyprus, and Morocco and a total capacity of 16.9 MTEU and 69 container gantries, including Germany’s only deep-water container terminal. Eurogate has a longstanding relationship with HLAG through its operations in the German ports of Hamburg, Bremerhaven, and Wilhelmshaven, the three largest ports in Germany, and it also operates HLAG’s West-Med transshipment volumes at the TangerMED port in Morocco.

Contship is a subsidiary of Eurokai, one of the shareholders of Eurogate, and is currently controlled by Eurokai (66.6%) and Eurogate (33.4%). Contship operates (directly and indirectly) four port terminals with 23 STS cranes and 12 mobile cranes, one rail hub, and transport companies. On a standalone basis in the Italian market, the group handled a total of 1.5 MTEU containers with a market share of 16% in 2021.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Damietta Alliance Container Terminals JSC:

Andrea Russler
Phone: +49 160 792 65 25
Email: Andreas.Russler@damiettaalliance.com
Website: https://www.damiettaalliance.com/

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