A consortium of international financial institutions are supporting the development of a second container terminal in Damietta Port in Egypt, with a US$455 million co-financing package.

Damietta Alliance for Container Terminals is a special purpose vehicle established by Eurogate, Contship Italia, Hapag Lloyd, MELC Group and Ship & C.R.E.W, to design, develop, operate and maintain the terminal under a 30-year concession.

The financing package includes US$100 million from the Asian Infrastructure Investment Bank (AIIB), US$125 million from the European Bank for Reconstruction and Development (EBRD), US$120 million from the International Finance Corporation (IFC), US$60 million from the German development finance institution DEG, and US$50 million from Proparco.

Damietta Port is strategically located close to the Suez Canal, with direct road connections to Greater Cairo, Alexandria and the Nile Delta. The project is in response to growing demand for containerized traffic in Egyptian ports. The improved infrastructure and operational efficiency will increase the port’s competitive position as a strategic hub in the Eastern Mediterranean.

The financing will promote private sector participation in the operation and maintenance of the port.

As part of the project, a skills development strategy will be developed in partnership with local vocational schools to provide the local population with training on skills required for the sector’s expansion, with a focus on gender and women participation in the workforce.

Since 2017, AIIB has invested close to US$1.6  billion in seven projects in Egypt.