The National Company for Multimodal Transport (NMT), an Egyptian holding company under Nile Logistics, Citadel Capital's platform for investment in the river transportation sector, will commence a new container transshipment service between Port Said Port and Sharq Al-Tafrea on the Suez Canal
Citadel Capital (CCAP.CA on the Egyptian Exchange) announced today that the National Company for Multimodal Transport (NMT) has begun to transport containers via river barges between the Port Said Container Terminal and the Suez Canal Container Terminal / SharqAl-Tafrea, including a naval service bay at the Suez Canal.
The new container transshipment service is the result of close cooperation between Citadel Capital, the Suez Canal Authority, and various government bodies at the Ministry of Transport to capitalize on the untapped potential of environmentally friendly, fuel-efficient river transport solutions across the region.
A successful trial carried out by NMT has proven that inland barges can transship containers between both port terminals in less than one hour compared to a minimum of 4-6 hours on average by truck convoys.
“This project came as a result of close cooperation between the Suez Canal Authority, the Egyptian Authority for Maritime Safety, the Suez Canal Container Terminal and Port Said Container Terminal, among others,” said NMT Chairman Gen. Maged Farrag. “We are particularly grateful to Admiral Mohab Mamish, head of the Suez Canal Authority (SCA), for his support and that of his team on this project.”
Extensive studies carried out in collaboration with the SCA and the Port Authorities concluded that the project will be beneficial on multiple fronts for all parties involved. In addition to eliminating the need to use ferries to cross the Suez Canal, the project will have a six-fold multiplier effect on fuel efficiency against land trucking. It will also ease road congestion and reduce carbon emissions to enhance the overall environmental footprint of the area.
“NMT has a notable ability to generate sustainable returns despite the current fuel subsidy program, which favors less fuel-efficient modes of transport such as trucking,” said Karim Sadek, Managing Director of Citadel Capital, the leading investment company in Africa and the Middle East. “It is also more efficient for clients as containers were often re-routed to other Mediterranean countries before they reached their destinations at other Egyptian seaports.
“After the successful conclusion of the trial service, we expect NMT to start commercial operations in two weeks,” Sadek noted.
“In addition to reducing fuel consumption, easing road congestion and reducing accident rates, the transshipment service will create new employment opportunities for the residents of the Suez Canal region,” added Citadel Capital Managing Director Ahmed El Sharkawy.
The launch of NMT’s inland service will also help draw investment to the Suez Canal corridor region while simultaneously growing shipping and container activity at Port Said Terminal, thus generating revenue for the Port Authorities involved.
Citadel Capital has effective ownership stake of 37.9% in NMT, a subsidiary of Nile Logistics.
Transportation is one of five core industries in which Citadel Capital invests alongside energy, agrifoods, mining and cement.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading investment company in Africa and Middle East. Citadel Capital controls investments of US$ 9.5 billion and focuses on 5 core industries: Energy, Transportation, Agrifoods, Mining, and Cement. For more information, please visit citadelcapital.com.
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