The Suez Canal Economic Zone (SCZone) and the Egyptian Holding Company for Silos and Storage (EHCSS) are embarking on the development of a comprehensive grain handling, processing, and storage facility, with an initial investment of $153 million, as reported by Al Mal News. Set to be completed in two phases, the complex will enhance Egypt’s grain supply capabilities.
The project will be carried out in two phases, with the first phase costing $75 million and the second phase an additional $78 million. The timeline for completion is projected to be between two and two and a half years, contingent on the participation of a local or international strategic investor.
SCZone has designated 1 million square meters for the project, with 385,000 square meters in the port area assigned for the construction of 20 silos. These silos will have the capacity to store 4 to 6 million tons of grain annually. An additional 650,000 square meters in the logistics zone will facilitate the processing of 648,000 tons of wheat flour and 252,000 tons of bran each year. The complex will primarily serve the grain supply needs of East Africa and the Gulf, regions through which 55 million tons of grain pass annually via the Suez Canal.
The Suez Canal Economic Zone plays a pivotal role in Egypt’s economic development, designed to attract investment in industries that leverage the strategic location of the Suez Canal. Spanning over 460 square kilometers, SCZone is positioned as a global hub for logistics, trade, and industrial activity, offering tax incentives and streamlined regulations to encourage foreign and domestic investors alike. Its proximity to one of the world’s busiest maritime routes makes it a vital area for industries, particularly those involved in global trade and supply chains.
The Suez Canal itself is a critical artery in the global grain trade. As a major maritime passage connecting the Mediterranean Sea to the Red Sea, it reduces the travel distance for ships transporting goods between Europe, the Middle East, and Asia. Each year, over 55 million tons of grain pass through the canal, making it an indispensable route for global food supply chains, especially for regions like East Africa and the Gulf, which rely heavily on grain imports. This new complex within the SCZone will not only bolster Egypt's infrastructure but also strengthen its position as a key player in the international grain trade. By enhancing grain storage and processing capabilities, the project aims to meet the growing demand in these regions and support global food security.