Activities related to maritime transport and industries related to them as well as the means of their development to confront future needs within the framework of international changes in such industry in order to achieve future economical benefits (October 2000)

The entity that carried out the study

Researches and Consultations Center affiliated to the Maritime Transport Sector-Arab Academy for Science ,Technology and Maritime Transport.

The objective of the Study

The development of maritime transport activities in Egypt and its success criteria.

Results

• The development of inter- trade between Arab and African countries leads to the development of transport between these countries which may also lead to activating and updating work mechanism in ports.
• The financing sources for the construction and purchase of vessels are one of the obstacles that could be eliminated through the cooperation between the country and the private sector by means of establishing national joint companies in cooperation with banks and businessmen.
• The ministerial decree 31/98 motivated different parties to compete in order to provide tariffs discounts and exemptions to ship owners regardless of the quality of service that resulted in losses to the Egyptian economy.
• The establishment of East Port Said Port is considered an attracting factor to increase the number of vessels crossing Suez Canal.
• The customs procedures are very slow and complicated as the number of steps for the release of some cargo have reached 32 signature.

Recommendations

• Giving due concern to the restructuring of Egyptian ports to cope with the 21st century environment and developing its competitiveness. The Ministry of Transport is currently undertaking these procedures.
• The Government should set a definite target and strategy to support the national commercial fleet and eliminate all obstacles that confront the fleet development.
• Setting accurate criteria to allow foreign shipping companies to operate as maritime agencies in Egypt.
• Following the example of the procedures taken by European countries as well as Japan and Korea in the field of vessels industry, as they delivered their shipyards to experienced countries at no cost, on condition that they maintain the sustainability of work and laborers.
• Developing a database for standard prices in all sites classified in accordance with customs tariff provisions in order to overcome the problems of prices.

Strategy on Development of shipbuilding and repair in Egypt (November 2009)

Entity conducting the study:

I Maritime Investment Company.

Objective of the Study:

Develop a vision, strategy and action plan for shipbuilding and repair sector in Egypt.

Results:

1- Although God granted Egypt a distinguished geographical location, in addition to its sovereignty on Suez Canal, it has not yet been able to reap the full benefits in this sector.

2- Egypt’s share of the global shipbuilding industry is very small, estimated at about 0.07%, equivalent to $70 million.

3-  Problems faced by Egypt in this context include:

– The current administrative system necessitates the approval of the General Committee making it a highly sophisticated procedure and time-consuming.

–  Difficulty to secure necessary finance.

Improvements should be made in arsenals in order to enhance their efficiency and operation through the application of modern technological methods and the use of modern equipment in order to support ship building and repair so as to achieve increase in income.

 Recommendations:-

• Regard the sector as a strategic industry.
• Develop a policy to promote the sector.
• Establish a central council with broad authority and enable it to take all steps related to the implementation of political framework.
• Rationalize tax and customs system
• Coordinate between security and tax procedures to avoid delay factors.