The project, located in the western region of Damietta Port, will recycle ships, construct new vessels, and conduct ship repairs, including planned and emergency maintenance for vessels up to 400 meters in length and 40,000 tons in lightweight displacement
Egypt has signed an agreement to establish the region’s first ship recycling and building project, a venture that sets a new standard for the Arab and African maritime industries. The project, located in the western region of Damietta Port, will recycle ships, construct new vessels, and conduct ship repairs, including planned and emergency maintenance for vessels up to 400 meters in length and 40,000 tons in lightweight displacement.
This initiative, supervised by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Engineer Kamel El Wazir, represents a major step in Egypt’s sustainable industrial development and private sector collaboration.
The agreement establishes a joint company between the Holding Company for Maritime and Land Transport and Al Wahda Industrial Development Company. The project will operate on a 2 million square meter site, adhering to internationally recognized environmental and safety standards.
El Wazir emphasized that the project aligns with President Abdel Fattah El-Sisi’s directives to expand private sector participation in national development. “This initiative reflects the promising investment climate and various incentives provided by the state to attract private investment, ensuring economic growth in the framework of the New Republic,” he said.
The project is set to transform the ship recycling industry in the region, dismantling ships from across the globe and converting them into high-quality recyclable materials. This aligns with international guidelines, including the Hong Kong and Basel Conventions and the European Union’s Ship Recycling Regulation (EU SRR No. 2323/2016).
Deputy Prime Minister El Wazir highlighted the initiative’s strategic importance for Egypt’s iron and steel industry. By replacing imported scrap metal with locally recycled materials from dismantled ships, the project will provide raw materials for steel production in an environmentally sustainable manner. This will enable the production of “green steel,” a critical step toward achieving a sustainable industrial ecosystem.
Egypt currently produces approximately 8 million tons of rebar annually, though licensed factories have a production capacity of 16 million tons. The local market generates only 1.5 million tons of scrap metal annually, while 3 million tons are imported. This project aims to supply an additional 1.5 million tons of scrap annually within five years, covering 66% of local demand and significantly reducing reliance on imported materials. This will not only save foreign currency but also bolster the national economy.
The ship recycling project is also expected to create around 4,000 direct and indirect jobs, contributing to local employment and economic development. Additionally, it will position Egypt as a leader in the global ship recycling market, attracting international shipping companies to its state-of-the-art facilities.
The signing ceremony also included a memorandum of understanding (MoU) to develop and manage dry bulk terminals at Egypt’s ports, further enhancing Egypt’s maritime infrastructure.
This ship recycling project in Damietta is poised to reshape the maritime industry in the Arab and African regions, demonstrating Egypt’s leadership in sustainable industrial innovation and its commitment to driving economic growth through strategic public-private partnerships.
