Maritime Transport Sector (MTS) The Study was carried out
Maritime Transport Sector (MTS)The agency carrying out the Study
2018Year of Publication
  • Attracting international shipping alliances to Egyptian seaports and raising their competitiveness with neighboring ports, especially in transshipment trade.
  • Stimulating the trading traffic and ship frequencies at East Port Said Port and the Suez Canal Container Company (SCCT) as well as attracting transshipment trade to transform it into a hub port for transshipment trade and increasing its competitiveness with neighboring ports.
Purpose of the Study
  • The study has focused on the cost of the maritime voyage, including fees, tariffs, charges for port services, and handling costs at container terminals (loading/unloading, which is the basic element of the shipping line, which must be characterized by price flexibility in both the port and container terminals):
  1. Revenues from port fees are collected on behalf of the Port Authority, revenues from lighthouses are collected on behalf of the Egyptian Authority for Maritime Safety, and handling revenues are collected separately on behalf of container companies.
  2. Port fees and lighthouse fees are determined by ministerial decrees, while container handling costs are characterized by price flexibility because they are determined by the resolutions issued by the company’s board of directors. Thus, it is necessary for Port Authorities and the Container Handling Companies to have a sort of coordination concerning the package of facilities that are granted as incentives.
  3. The Damietta Port Authority followed a successful marketing policy, where coordination and cooperation were achieved with the Damietta Container Terminal, and a contract was concluded with the shipping line YML as a representative of the ALLIANCE group, which consists of 5 shipping lines. The contract includes granting a package of facilities in handling fees and transshipments storage, in addition to a package of discounts at the end of each year on handling figures.
  4. The impact of which became clear in the continuous increase in the number of voyages and the number of handled containers, without affecting port fees and Ministerial Decrees.
Conclusions
I. To encourage transshipment traffic at East Port Said Port, we propose the following:

  • Tugboats are accounted for by movement, not by hour, for transshipment vessels, taking into account the calculation of tugboat operating costs.
  • Accounting for pilotage boats by movement, not by hour, taking into account the calculation of the operating costs of pilotage boats.
  • No increase in fees by more than 5 times the rates stipulated in Law 24 of 1983 and unifying the foundations of accounting.
  • Applying discounts suggested above in addition to those state in Economic Zone Resolution No. 127 of 2017.

II. Suez Canal Container Handling Company (SCCT), , we propose the following:

  • SCCT terminal in East Port Said Port reduces the handling rates of transshipment containers by 18.5% to create a competitive standpoint (first stage).
  • The reconsideration of the analysis of the impact of these reductions on the number of vessel voyages and the number of transshipment containers received.
Recommendations