Egypt’s Minister of Transport, Kamel El-Wazir, recently witnessed the signing of the country’s first-ever ship recycling project agreement at Damietta Port, supporting industrial sustainability, and positioning the country as a regional hub for ship recycling.
A Vision for Industrial and Environmental Sustainability
The agreement, signed between the Holding Company for Maritime and Land Transport and Al-Wahda Industrial Development Company, marks a major milestone in Egypt’s journey toward becoming a leading force in maritime industry development.
The Damietta Port facility, covering a vast area of 2 million square meters, will provide an environmentally friendly solution for dismantling ships and producing raw materials for various industrial uses. With the ability to handle vessels up to 400 meters in length and a light displacement of 40,000 tons, the facility will adhere to international standards of ship recycling, ensuring that ships are dismantled safely and responsibly.
Economic Impact and Job Creation
One of the most significant aspects of this project is its potential to boost Egypt’s economy. Minister Kamel El-Wazir emphasized that the facility would attract global ships to Egypt for recycling, converting these vessels into scrap metal for global trading. The facility’s production capacity will be up to 1.5 million tons of scrap steel annually within five years, which will account for 66% of Egypt’s domestic scrap demand for rebar production.
This shift toward recycled steel will not only reduce Egypt’s reliance on imported raw materials but will also support the production of “green steel”—an environmentally sustainable material vital to modern infrastructure and industrial projects. By incorporating recycled materials, the ship recycling project is in line with Egypt’s broader environmental and sustainability goals, reinforcing the country’s commitment to green industrial practices.
The project will create approximately 4,000 direct and indirect job opportunities, contributing to local employment and providing a significant boost to Egypt’s labor market. The development of the recycling facility will help alleviate unemployment in the region and offer training in high-demand skills, supporting the growth of a skilled workforce in Damietta and beyond.
Strengthening the Iron and Steel Industry
The ship recycling project also holds substantial potential for Egypt’s iron and steel industry. By supplying recycled steel from ship scrap, the project will support local steel production, reducing Egypt’s dependency on imported materials. This shift will be vital for the country’s ability to meet the growing demands of domestic construction, infrastructure projects, and other industrial applications, positioning Egypt as a key player in the regional steel market.
The facility’s contribution to Egypt’s iron and steel industry will be pivotal in fostering industrial self-sufficiency and reducing the outflow of foreign currency spent on raw material imports.
A Step Toward Regional Economic Growth
Beyond the ship recycling facility itself, Minister El-Wazir also witnessed the signing of a Memorandum of Understanding (MoU) between the Holding Company for Maritime and Land Transport and Al-Wahda Industrial Development Company. This MoU aims to deepen investment and commercial relations between the two entities and focuses on the development of dry bulk unloading stations at key Egyptian ports, including the Dekheila Port. This development will further bolster Egypt’s maritime and industrial infrastructure, contributing to the country’s long-term economic growth.
By investing in these critical infrastructure projects, Egypt is laying the groundwork for continued development, ensuring that the nation remains competitive in the global marketplace while creating a sustainable, green economy.
