Market study for the establishment of a second container terminal in Damietta Port

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Damietta Port Authority Study was carried out
PricewaterhouseCoopers “PwC”The agency carrying out the Study
November 2017Year of Publication
The study aims to examine the feasibility of Damietta Port distinguishing itself in the upcoming period by establishing a highly efficient, modern and competitive container terminal in order to acquire the desired market share, by shedding light on the global market and analyzing macroeconomic factors, with an analysis of the macro factors of the Egyptian economy.Purpose of the Study
  • The Eastern Mediterranean region has more than 15 ports, with an operational container handling capacity of approximately 29 million TEUs in 2017.
  • Egypt accounts for about 38% of the operational capacity in the region, most of which is in the ports of East Port Said and Damietta, and there are now plans for expansion in the future.
  • Similarly, other ports in the eastern Mediterranean are planning to expand their container terminals, mainly the ports of Piraeus, Mersin and Haifa.
  • Based on the historical growth rates and the anticipated growth in the volume of demand, the operational capacity of the region is expected to grow to reach approximately 45 million TEUs in the next ten years.
  • In terms of infrastructure, the competitive advantage was perceived for Ports of Piraeus, East Port Said, Ashdod and Haifa, due to the depths of the berths and the operational capacity.
  • Ports of Beirut, Mersin and Piraeus offer competitive rates for trans-shipment fees compared to Egyptian ports, which is a clear impediment for ports such as Damietta Port.
  • Ports of Piraeus, Mersin and East Port Said use modern container handling equipment, including dock cranes for gigantic ships (the third generation of Panamax) and more than 1000 container cooling sockets.
  • Ports such as East Port Said and Piraeus have established partnerships with international terminal operators who have international port networks and work with international shipping lines alliances.
  • Ports of Piraeus and Mersin are the most efficient and productive in the region, which is an important factor in saving costs for shipping lines.
  • In terms of safety, European ports remain the most attractive in the midst of the political and economic turmoil that the countries of the eastern Mediterranean are exposed to.
  • Ports associated with enticing inland areas characterized by their connection with train lines and highways, in addition to their proximity to airports, cities and industrial areas.
  • Ports of Mersin, Piraeus and Ashdod provide value-added services such as modern electronic operating programs “drivers”, wireless communication networks, cleaning and maintenance services, etc.
  • Ports of Damietta and Port Said are distinguished by their strategic location due to their proximity to the Suez Canal, and Port of Piraeus is distinguished by being the first port of entry to the eastern Mediterranean.
  • The Calculation Is That The Ports Of Piraeus And Mersin Are The Best Among The Ports Of Comparison Due To Their Operational And Cost Advantages.
Results
  • Within imminent future, the port of Damietta must distinguish itself through a highly efficient and modern container terminal, competitive in its fees, in order to acquire the targeted market share.
  • Distinguishing factors Considerations for Damietta Port with regard to the new container terminal are:
    1. Infrastructure: – The minimum depth of the berth is 18-19 m
    2. Handling capacity: – of more than 2 million TEUs
    3. Efficiency and productivity: – The least number of containers handled per hour per winch: more than 40
    4. The maximum vessel dueling time : 0-1 day
    5. Equipment and facilities: – quay winches (preferably for the size of gigantic ships, the third generation of Panamax or its equivalent), the minimum load of the winch is 65 tons, and the minimum range of the winch is 65 meters.
    6. Terminal operator: Contracting with an operator with a global reputation and presence with steady business links with other ports in Europe, the Middle East and Asia.
    7. Cost: – Providing competitive prices regarding container handling fees and port fees compared to competing regional ports (such as Piraeus, Beirut and Haifa)
    8. Shipping Lines: – Forming strong business relationships with the International Shipping Lines Alliance in order to put Port of Damietta on the map as a transit port among its shipping routes such as Port Said and the (CKYH) Alliance.
    9. Value-added services: Investing in modern and pioneering IT applications for terminal operating systems, information management systems, and corporate resource planning systems such as (RBS and NAVIS).
    10. Providing value-added services such as: digital communication and wireless internet services, additional storage/waiting spaces, business service centers, hotels, restaurants, medical services, security services, container cleaning and maintenance, etc.
Conclusion

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