Saudi Arabia’s Zamil Industrial will develop a large logistics zone in the south of Egypt, according to a statement made to the media by minister of supply Khaled Hanafy.

The 202,342-square-metre logistics centre, which will be built in the Qena governorate, will have a storage capacity for 18,000 tonnes of vegetables and grains.

Egypt has been keen on developing industrial and logistics centres across the country, although so far the focus has been on the Suez Canal area and the newly established Suez Canal Zone (SCZone).

Cairo is currently planning to develop an industrial and logistics zone surrounding the main ports of the Suez Canal. The government recently approved a draft decree establishing the General Authority of the Economic Zone of the Suez Canal (GAESC), changing the area into an economic authority, allowing the SCZone to act as a single window able to deal with investors directly.

In early September, MEED reported that the UAE’s Aramex is currently in talks with Cairo-based Orascom Telecom Media and Technology Holding for the development of several logistics projects in Egypt.

Aramex released a statement on the Dubai Financial Market (DFM) saying it is in talks with the Egyptian firm to develop five logistics areas. The statement added that no agreement has been signed between the two parties.

It is understood that the proposed developments will be in the new Suez Canal Zone.