China's TEDA corporation, COSCO shipping company and Suez Canal Economic Zone (SCZone) signed on Tuesday an agreement to build a new logistics park at TEDA Cooperation Zone in Egypt's Red Sea city of Ain Sokhna, east of the capital Cairo.
The agreement was signed by Executive General Manager of China-Africa TEDA Wei Jianqing, President of COSCO shipping (Europe) GmbH Lin Ji, and head of SCZone Mohab Mamish on the sidelines of the World Youth Forum being Held in Egypt's Sharm el-Sheikh resort city.
The signing ceremony was attended by Egyptian Prime Minister Sherif Ismail and some Egyptian ministers and government officials.
The logistics park is an investment of China's COSCO shipping (Europe) GmbH. It is part of TEDA's development of an area of 7.23 sq km in Ain Sokhna.
"The special economic zone is not only meant to be built into an industrial city but rather a modernized city capable of comprehensive services including entertainment, real estate, R&D, as well as storage and logistics," Wei Jianqing told Xinhua.
He noted that COSCO has been working with TEDA in the past decade, adding that the new Investment Law in Egypt provides the momentum that both TEDA and COSCO seek to put the logistics park into reality.
"We are proud to say the Suez International Logistics Park will be the first bonded logistics park in any special economic zone in Egypt," he added.
The international bonded logistics park is meant to enrich the supporting logistic facilities of Ain Sokhna, Wei Jianqing pointed out.
The logistics park will be built on 130,000 square meters including 52,000 square meters of storage yards and 46,000 square meters of bonded and non-bonded warehouses.
The investment of the logistics park stands at 30 million U.S. dollars and it will provide more than 300 job opportunities initially.
"The idea of building a logistics park in TEDA Cooperation Zone in Egypt came from COSCO's vision to serve the Belt and Road Initiative as a major international logistics service-provider," Lin Ji, told Xinhua.
He said the logistics park will help COSCO consolidate its position in North Africa and Europe, adding that Egyptian importers and exporters can make use of the services provided in the bonded logistics park, which will save them a lot of money from the customs clearance process.
"Our cooperation with the General Authority for Suez Canal Economic Zone (SCZone) has been smooth. The determination and trust the SCZone has shown during the negotiation really guarantee the success of the logistics park," he stressed.
China is Egypt's largest trading partner with a trade volume of about US$11 billion in 2016 and about US$5.2 billion in the first half of 2017.