By: AGBI

Egypt is planning an integrated logistics zone for storing and handling petroleum products at the Northern port of Alexandria, a Saudi news website reported on Monday.

More than $600 million will initially be invested in the project, Asharqbusiness said, citing an unnamed Egyptian government official.

The zone will span an area of around 300,000 square metres, including a 900-metre-long berth, which is part of phase one of the Alexandria Port development.

“This project aligns with the government’s strategy to transform the country into a regional energy hub, leveraging its strategic geographic location and integrated logistics and maritime infrastructure,” the official told the website.

The ministries of oil and transport are working together to finalise the project contracts, including agreeing on the financing structure and determining the land use rights for its  Alexandria Port authority owner. 

According to the report, the storage capacity at Egypt’s main ports is estimated at around 29 million barrels. The country has 19 commercial ports, 14 of which are currently being developed, it said.

Egypt also has about 79 petroleum storage facilities that were constructed or upgraded between 2014 and 2023 to bolster strategic reserves at a cost of EGP2.4 billion ($50 million).

In March, the country was reported to have offered 10 crude oil and petroleum product storage facilities for lease at the Ain Sokhna and Ras Badran ports on the Red Sea.

The report said Cairo was reviewing an offer from AD Ports Group to lease storage facilities for crude oil and petroleum products on the Red Sea coast. It said negotiations were underway and likely to be agreed before July.