The Egyptian Ministry of Transport, in collaboration with the Ministry of Industry, has unveiled a new national project at Damietta Port. This initiative aims to establish a specialized company focused on ship recycling and building new vessels. The project will be executed on a 2 million square meter site and will comply with international standards, enabling Egypt to attract ships from around the world for recycling. The end product will be scrap metal, which is globally tradable.
Production Goals and Market Contribution
The primary objective of this project is to produce 1.5 million tons of scrap annually within five years. This will supply 66% of the local market’s needs for materials used in rebar production, thus reducing the country’s reliance on imported scrap. Furthermore, the initiative aims to cut foreign currency usage by providing locally sourced materials to the steel industry.
Job Creation and Economic Growth
In addition to contributing to industrial growth, the project is expected to create approximately 4,000 direct and indirect job opportunities. These jobs will help boost the Egyptian economy by fostering growth in the transportation, recycling, and construction sectors.
Presidential Support and Investment Strategy
The project is a response to presidential directives aimed at supporting private investment in the transport sector. By providing essential raw materials for the iron and steel industries, the project will play a key role in strengthening Egypt’s industrial capabilities.
International Compliance
The project also aligns with global best practices, as it adheres to recommendations from the Hong Kong and Basel conferences on ship recycling, as well as European Union regulations. These standards ensure that Egypt remains at the forefront of ship recycling in the Arab and African regions, positioning the country as a strategic leader in this sector.