The Mashreq Petroleum tank terminal due to be constructed to the east of Port Said is expected to see construction start before the end of the year.

“We are expecting to secure a partner for this project and start construction over coming months,” said Qalaa Holdings managing director, Mohamed Shoeib.

Shoeib says Qalaa Holdings, formerly known as Citadel Capital, has already spent $30m on the project securing the concession and carrying out dredging works.

He says the full investment cost of the project will be $350m.

Construction will be split into three phases with the first phase expected to be begin before the end of the year.

A total of $60m will be invested in the first phase, $150m invested in the second phase, and $110m invested in the third phase.

The 30-year concession agreement for the project was signed with the East Port Said Port Authority in May 2013.

Under current plans the facility will have a storage capacity of 10 million metric tonnes a year and an annual bunkering capacity of 2-3 million tonnes.

It will have three berths that will accommodate tankers with a loading capacity of 120,000 deadweight tonnes (dwt).

There will be an additional four berths for bunkering barges.

Qalaa Holdings says the facility will primarily serve the liquid bulk market in the Far East, the Middle East and the broader Mediterranean region.

It will also provide fuel bunkering services for ships transiting the Suez Canal.