Download Project brief 2007 COUNTRY: EGYPT PROJECT NAME: DAMIETTA

COUNTRY:
EGYPT
PROJECT NAME:
DAMIETTA CONTAINER TERMINAL
SECTOR:
Infrastructure
CONTRIBUTION OF ADB : US DOLLARS 150 MILLION
PROJECT DESCRIPTION: As shown in Figure 1 below, the Damietta port is situated
on the Mediterranean coast of Egypt, about 37 km west of Port-Said and about 9 km of
Dumyat city. Theport’s operations commenced in 1986. The port currently handles exports
of agricultural products, fertilizers and furniture as well as the receipt of imported good
such as petrochemicals, cement, grains, flour, and general cargo with a total capacity
of about 5.6 million tonnes annually. Damietta is well connected by roads and railways that
provide a source of competitive advantage for the port compared to other Egyptian
terminals. However, the port’s existing facilities are unable to serve the potential demand
of 4.5 million twenty foot Container Equivalent Units (TEUs), which would make it one of
the largest transshipment facilities in the Mediterranean and the only one capable of
handling the new generation of large containerships.
PROJECT BENEFITS: The proposed project will have important development impacts.
The first direct impact will be the creation of jobs. The project will create1,600 permanent
direct local jobs: 1,400 new jobs in operations, 130 in engineering, 50in services and
supplies, 25 in management and financial departments. The present 10 value of the direct
local labor wages will be significant, given that PV is estimated at USD 60 million.
Another benefit of the project will be the transfer of technology since the operators of the
port will provide training in modern port practices to the Egyptian staff.
The project will generate revenues for the government through taxes and free zone fees
(estimated at 1% of project revenues), worth about USD 10 million in PV terms. The
injection of permanent wages and revenues into the economy will boost Egypt’s national
income or gross domestic product (GDP). Thus, the project will accelerate economic
growth and hence could have a significant developmental impact.
Project brief 2007