Egypt’s Suez Canal Authority (SCA) and Kuwait-based Agility Logistics have signed an agreement to establish a new logistics centre in East Port Said.

The planned logistics hub is part of the current expansion of East Port Said, Agility said in a statement.

MEED understands both parties will be considering establishing a joint company to implement the project, which will have two phases.

The first phase covers the preparation of feasibility studies for the development of a logistics centre and the provision of customs technology services.

The second phase includes the preparation of the detailed master plan for the logistics centre as well as detailed technical and financial studies to provide technology services.

Agility said it agreed to develop the hub with “international standard logistics infrastructure to enhance importing and warehousing of raw materials.” The hub is also expected to facilitate the export and distribution of intermediate and final goods through the Suez Canal ports.

To achieve this, Agility will be providing solutions for Egyptian customs, including the modernisation and automation of the customs processes.

Tarek Sultan, vice-chairman and CEO at Agility, cited Egypt’s prominent location, which allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub. "Being present in the Suez Canal Economic Zone and, in particular, working in the East Port Said area will give companies access to world-class infrastructure as well as fast, easy and efficient logistics and customs services in terms of time and cost," Sultan said.