A joint venture (JV), named Damietta Alliance Container Terminal SAE, has been formed to develop and run a new terminal at the port of Damietta in Egypt.

Hapag-Lloyd Damietta has a 39% stake in the JV while Eurogate Damietta and Contship Damietta each hold a 29.5% interest.

Middle East Logistics & Consultants Group and Ship & CREW Egypt SAE each own a 1% stake in the JV.

Hapag-Lloyd CEO Rolf Habben Jansen said: “With the new terminal, Hapag-Lloyd will significantly improve its transhipment operation in the East Mediterranean market as well as access to the local Egyptian trade.”

The new Terminal Two is anticipated to commence operations by 2024.

With a final total operational capacity of 3.3 million twenty-foot equivalent units (TEU), the terminal will act as a strategic transhipment hub for Hapag-Lloyd in the East Mediterranean.

The final signing of the concession agreement for the project was carried out in Cairo, Egypt.

Egypt transport minister Lieutenant-General Eng Kamel Al-Wazir said: “This is a very encouraging, well-planned partnership of international and Egyptian private sector in order to position Egypt as a global hub for logistics and trade.”

“In this first phase, we will establish the port of Damietta as an integrated logistics hub for containers, which will then be followed by the establishment of logistic corridors reaching different manufacturing areas in Egypt by railway network.”

In March, Hapag-Lloyd agreed to acquire a 6,589TEU container ship from Deutsche Afrika-Linien (DAL), along with a container fleet of nearly 17,800 boxes, as part of its takeover of the latter’s container liner business.