Egyptian President Abdel Fattah El Sisi asserted on Tuesday that the state is moving on a different track with the aim of possessing real economic pillars and benefiting from the geographical location as well as accomplishing projects at lower costs.
Speaking during a visit to Alexandria Port to check on the work progress there, Sisi said that the state intervenes to solve all problems related to mega projects and its expansion such as the state’s expropriation of property and compensation for citizens, noting that such intervention helped in finalising projects according to set schedules.
Such policy is different from what had been done over many years when the state was used to asking investors to be involved in the development projects, the president added.
“Over the past years, we have been requesting investors to develop our own ports, including the Damietta port and others. Now, we are doing it ourselves and with our own funds,” Sisi said.
During the visit, President Sisi received firsthand information about work to upgrade its multi-purpose logistics station, docks and advanced warehouses.
The president noted that the state eases the challenges facing investors, including the need to expropriate the buildings around projects and compensate residents.
“For sure, we want investors with us,” Sisi said, however, he added that investors sometimes find themselves unable to face some of the challenges of these projects.
“If we told [an investor] to develop a certain area, they will find challenges that they cannot deal with … But as a state, when we need to expropriate and compensate people, we do so… taking into consideration the security aspect, which we consider in all projects,” the president said.
He also gave an example of Ain Sokhna Port that was established 25 years ago saying that the state is exerting all efforts to expand and upgrade it to help lure in investors.
“We want to give the chance for international investors and operators. We shorten their journey when [the state] does the [development] work,” President Sisi added.
He noted that the construction work at the Ain Sokhna Port will cost LE25-30 billion.
“The state has now taken a different path … through which it aims to possess real capabilities and the components of a real economy to benefit from its position,” President Sisi said.
He pointed out that since 2005, the state has taken a decision to maintain the level of public debt despite the negative impact of population growth and high demand for employment.
The president also demanded a good compensation for citizens whose homes will be evacuated to develop the back shipyards of Alexandria Port.
In remarks to the minister of transport, Sisi said the plan to remove such homes was part of the port’s security and that is why they have to be removed.
He added that the past months witnessed experimental implementation of tax and customs automation system but the actual implementation of the new system will start in March 2022 through the use of artificial intelligence.
The president, meanwhile, called on the government to achieve the full automation with providing LE100 billion for that purpose to facilitate services offered to citizens and curb graft.
He reaffirmed that all goods imported into Egypt must meet international standards and classifications.
By March 22, Egypt will not allow the entry of any goods unless they are in line with European standards, Sisi said.
“We will not accept goods entering Egypt that will last for a week or two or three or a month and then be thrown away.”
The president highlighted Egypt’s steps towards the “full automation” of customs and taxes procedures, saying it is the way to fight corruption.
“If you really want to face corruption, people have to deal with machines … and both citizens and employees should not maintain direct communication,” President Sisi said.
The president called on Prime Minister Moustafa Madbouli and Finance Minister Mohamed Maeet to introduce the automation plan applied in the world to Egypt in order to allow import and export companies to get approvals necessary for shipping goods instead of storing them at ports.
He said the automation plan will boost the state ability to control the movement of imported and exported goods and prevent imports of illegal and risky items such as narcotics.
The president added the new automation system will give a chance to importers to address the companies which, for their part, will address the customs departments to get approvals necessary for imports and exports.
The government has been assigned with the development of ports such as Alexandria, Damietta and Ain Sokhna to be ready for investors to present good offers for their operation, Sisi explained, adding that the government will then have to choose the best offers.
During his visit on Tuesday, President Sisi inspected the Tahya Misr multi-purpose station in Alexandria Port. He also listened to a detailed explanation by the official in charge of the logistics terminal about its great potentials.
‘It is the first multi-purpose station in Egypt and plays a vital role in modern transport system’, the official said.
The station also serves the high-speed electric train network which links Red Sea and Mediterranean ports, he said.
He added that it is feeding the dry port that will be established in the industrial zone in the 6th of October city, which he added, is a cornerstone for operating the logistics centre, which will be built behind Alexandria Port, according to him.
Sisi also inspected on Tuesday the petroleum Gouna zone in Alexandria Port to get acquainted with latest developments in the area.
He listened to a detailed explanation by Petroleum Minister Tarek el-Mulla about development rates of ports in Egypt, including six ports in the Mediterranean Sea and their counterparts in the Gulf of Suez in the Red Sea.
The move is part of an action plan to turn Egypt into a regional centre for circulation of oil and gas, said Mulla.
