No. TRANSPORT PLANNING AUTHORITY MINISTRY OF TRANSPORT THE ARAB REPUBLIC OF EGYPT THE STUDY ON MULTIMODAL TRANSPORT AND LOGISTICS SYSTEM OF THE EASTERN MEDITERRANEAN REGION AND MASTER PLAN IN THE ARAB REPUBLIC OF EGYPT FINAL REPORT Volume 1 EXECUTIVE SUMMARY AUGUST 2008 JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. KATAHIRA & ENGINEERS INTERNATIONAL EGO JR 08-003 TRANSPORT PLANNING AUTHORITY MINISTRY OF TRANSPORT THE ARAB REPUBLIC OF EGYPT THE STUDY ON MULTIMODAL TRANSPORT AND LOGISTICS SYSTEM OF THE EASTERN MEDITERRANEAN REGION AND MASTER PLAN IN THE ARAB REPUBLIC OF EGYPT FINAL REPORT Volume 1 EXECUTIVE SUMMARY AUGUST 2008 JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. KATAHIRA & ENGINEERS INTERNATIONAL Exchange Rate: US$ 1.00 = LE 5.71 (As of June 2007) PREFACE In response to the request form the Government of the Arab Republic of Egypt, the Government of Japan decided to conduct the “Study on Multimodal Transport and Logistics System of the Eastern Mediterranean Region and Master Plan in the Arab Republic of Egypt“, and entrusted it to the Japan International Cooperation Agency (JICA). JICA selected and dispatched a study team headed by Mr. Akihisa Kojima of Nippon Koei from November 2006 to December 2007. In addition, JICA held the support meetings headed by Professor Toshinori Nemoto of Hitotsubashi University to provide advises to the Study Team during the course of the Study in Japan. The Study Team conducted field surveys, and conducted discussions, data analysis and project formation together with the officials concerned of the Transport Planning Authority and the Ministry of Transport as well as other officials. Upon retuning to Japan, the Study Team prepared this final report. I hope that this report will contribute to development in the Arab Republic of Egypt, and to the enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of the Arab Republic of Egypt for their close cooperation extended to the Study Team. August 2008 Seiichi Nagatsuka Vice President Japan International Cooperation Agency August 2008 Mr. Seiichi Nagatsuka Vice President Japan International Cooperation Agency Letter of Transmittal Dear Sir, We are pleased to submit herewith the Final Report of the “Study on Multimodal Transport and Logistics System of the Eastern Mediterranean Region and Master Plan in the Arab Republic of Egypt.” The report compiles all the results of the Study and reflects the advices of the authorities concerned of the Government of Japan and your agency as well as the comments made by the counterpart organization i.e. the Transport Planning Authority, the Ministry of Transport and other authorities concerned in the Arab Republic of Egypt. The report presents the present and future conditions of the freight logistics for export and import. It presents the overall plan for the further logistics development of all the multimodal modal and logistics system: including forwarding activities, custom clearance and procedure activities. For the newly suggested projects, more than twenty projects are proposed in addition to the projects that have been already planned by the Government of Egypt. We wish to take this opportunity to express our sincere gratitude to your agency and the Ministry of Foreign Affairs. We also wish to express our deep gratitude to the Transport Planning Agency and the Ministry of Transport as well as other Government Agencies concerned in the Arab Republic of Egypt for the cooperation and assistance extended to us during the Study. We hope this report will contribute to the development of the Arab Republic of Egypt. Very truly yours, Ken Nishino Team Leader, Study on Multimodal Transport and Logistics System of the Eastern Mediterranean Region and Master Plan in the Arab Republic of Egypt Location Map Holistic Approach to Logistics Enhancement Egypt Is Rising Again Egypt Is Losing Occasion Not to Lose the Emerging CHANCE Yet It Is Not Too Late Widening Access Channel for tw o-w ay T Alexandria International o/ Fr Container Terminal om River Port EU Future Expansion KGL Container Terminal (planned) Container Terminal (Gov.) Development of Alexandria Port Promotion of Strategic Sea Port Development Development of Damietta Port Source: Google Earth Issues Source: Google Earth Realization of Logistics System on Inland Transport Issues Lack of Container Handling Equipment Large Maintenance Dredging Volume Lack of Container Yard Enhancement of Logistics Industry Limited Channel Capacity Insufficient Water Depth Establishment of Governmental Body related to Logistics Development of Logistics Center at Port Said Port (East) A le x A g ri cu l tu re Source: Google Earth R o a d ) m 6 1 - ( n ) C o t Construction of New Burg El Alab Construction of i n air to Belonging s e n Industrial Area: 800ha Railw ay Authority g o- a 10th of Ramadan r New Burg El Arab p U A Relocation x ( lex E Direct Access Line Direct Access Line h t D r e Development of e s B e r New River Port t Access Channel l Existing Development of na R Factories tio er o d Container di t a d a ad o (Free Zone Area) A kw Dekheila Port a R Terminal re t B r e e t s a e G D n i ya a i M n il (Future y ard) io d at r a m a m la Y s I Warehouses and factories ec ew - R N o r ir Phase 2 fo a C Sadat City Container Terminal Industrial Area: 500ha AICT Dekheila Development of Belonging (Plan) Logistics Center to Army at 10th of Ramadan Development of Existing Plan of Construction of (Industrial Area: 3,500ha) 6th of October Port Said Port (West) Port Said Port (East) Cairo -Sue Source: Google Earth Empty Direct Access Line z De Issues sert Army Area Road Area Insufficient Water Depth Development of Insufficient Area of Container Development of Logistics Center Yard Source: Google Earth New Freight Link Issues at 6th of October Heavy Congestion at Entry Limited Area of Container Yard (Industrial Area: 2,550ha) Gate Insufficient Length of Breakwater Regional Ring Road (Under Construction/Planning) Example of Logistics Center Example of Modern (Bremen Logistics Centre) Necessary Programs to Develop Railcar Double Stacking Logistics Industry T o / F Forwarding/Trucking Industry r o m Service Enhancement G u l f Human Resource Development a n d Legal Framework Improvement A s i a Financial Incentive n Necessity of Modal Shift C o to Alleviate Traffic Congestion Development of Logistics Center u To Upper n to Enhance Export/Import Promotion t r Egypt i Source: www.freefoto.com e Source: www.big-bremen.de s Damietta Port Mediterranean Sea P34 Access Channel Upgrade Project SP2 Study of Numerical Simulation for Sedimentation Prevention Port Said Port (West) R10 Burg El-Arab Access Line P35 Container Yard Expansion Project Construction Project Port Said Port (East) L3 Logistics Center Development Project SP3 Master Plan Supplemental Study SP4 Study on Bunkering Service Station R13 Railway Improvement Project (Ferdan - Port Said Port East) R12 10th of Ramadan Direct Access Line Construction Project (Bilbeis - 10th of Ramadan) New Burg El Alab L2 Logistics Center Development Project (10th of Ramadan) Alexandria Port SR1 New Freight Link Study (10th of Ramadan P27 Container Yard Expansion Project (AICT) – Helwan, Marazip Bridge) P28 Gantry Cranes Renewal and Additional RTG Installation Project (Government) P29 Container Yard Pavement Upgrade Project (Government) Dekheila Port P30 Container Terminal Consolidation Project P31 Additional Container Yard Construction Project P32 Additional Breakwater Construction Project P33 Conveyor System Installation Project R11 Sadat City Access Line Construction Project W13 New River Port Construction Project Legend Railway Project R9 6th of October Direct Access Line Railway Study Construction Project River Port Project L1 Logistics Center Development Project (6th of October) Logistics Center Project Note: Project written by bold face indicates urgent project. Project Location Map Table of Contents Preface Letter of Transmittal Location Map Holistic Approach to Logistics Enhancement Project Location Map 1. Study Introduction....................................................................................................................................... 1 2. Study Approach........................................................................................................................................... 3 2.1 Present Status of Export/Import Freight Transport ........................................................................ 3 2.2 Approach to New Freight Transport Development ........................................................................... 6 3. Freight Flows and Growth Scenario in 2022........................................................................................... 9 4. Desired Development Plan....................................................................................................................... 14 4.1 Maritime Freight Transportation....................................................................................................... 14 1) Securing International Hub Port Function.................................................................................. 14 2) Strengthening of Facilities for Export/import Freight................................................................. 15 4.2 Inland Export and Import Freight Transportation............................................................................ 16 1) Inland Freight