Hassan Allam Utilities has formed a joint venture — dubbed Yanmu — with regional warehousing and industrial developer Agility to establish and operate logistics parks in Egypt, both companies said in a joint press release according to Enterprise Press
The parks will provide warehousing and distribution facilities for businesses operating in various industries including e-commerce, manufacturing, consumer products, food and beverages, tech, automotive, energy, industrial goods, healthcare, and pharma, the release reads.
The facilities will offer lower carbon footprints, lower energy costs, and a 35% space savings compared to traditional warehouses, a company exec further told Enterprise Press. In addition, they will integrate sustainable features, including solar roofs.
Hassan Allam will project manage and build the parks and it will build the parks under engineering, procurement and construction (EPC) contract, Hassan Allam Holding co-CEO Amr Allam noted
Moreover, Hassan Allam Holding subsidiary PGESCO will act as the project management consultant, he added.
The first park: Yanmu East Logistics Park will be located on the new Cairo Suez road close to Cairo International Airport and the Ring Road. It is expected to open by August 2023.
It will cost some USD 100 mn to build and will be jointly financed by the two partners through a mixture of debt and equity, Agility said in a disclosure (pdf) to the Kuwaiti stock exchange.
However, Yanmu will also develop data center campuses at its warehouses, tying in with the MENA-wide data centers project Agility launched last week.
Yanmu East will include a data center featuring 25 MW of IT load, Allam said. Readily available energy will cut delivery time for international data center developers, who have significant appetite for green power at data centers. Egypt is well-positioned as a data center hub given our geographical location and the multiple subsea cables crossing our borders.
The second park: Yanmu West Park is set to launch in 2024 at a yet-to-be-finalized “strategic location,” Allam said.
More to come: Yanmu is eyeing further locations in the Nile Delta and Upper Egypt, and is also considering building “export facilities from key ports,” he added.