Agility and Hassan Allam link up to build logistics parks in Egypt

Agility

• Joint venture Yanmu is to open its first 270,000-sq-m site in August
• Kuwait’s Agility says parks will plug a gap in Egypt’s warehouse capacity
• Cairo government wants logistics to play a key role in recovery

Kuwaiti logistics specialist Agility has formed a joint venture with the development arm of Hassan Allam Holding to build and run warehouses in Egypt. 

The venture, Yanmu, is due to open its first logistics park in August with an initial investment of about $100 million, Agility said in a stock market filing.

The development, a 270,000sq m site about 10 miles from Cairo airport, will be part-financed by equity and debt. A second park is planned for next year.

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Dubai-listed Agility and Hassan Allam Utilities said the Yanmu parks would be designed to meet the storage and distribution needs of companies in sectors including e-commerce, food and beverage, technology, automotive, energy, industrial goods and pharmaceuticals. 

They will prioritise sustainable design, incorporating solar rooftops and other features that reduce power and water use and increase operational efficiency, the market statement said. 

“Yanmu will offer Egypt’s most modern, efficient and sustainable warehousing,” said Amr Allam, chairman of Hassan Allam Utilities. 

Agility vice chairman Tarek Sultan said: “When it comes to warehousing capacity and distribution capability, Egypt is underserved. Yanmu will fill the gap.” 

Both companies have recently unveiled expansion plans in Egypt.

In October, Agility announced that it is investing around $60 million to develop and operate two customs and logistics centres in the Suez Canal Economic Zone. 

In September, Hassan Allam Utilities signed two concession agreements to develop and operate strategic warehouses for the Internal Trade Development Authority in the governorates of Luxor and Sharqiyah. 

According to Egypt’s General Authority of Investment and Free Zones, logistics will play a “significant role” in the country’s economic recovery. 

“The outlook for Egypt’s logistics profile is positive over the long term as the efforts of the Egyptian government to reform the economy have so far helped attract the much-needed investments to carry out these upgrades,” the authority said.

Research firm Oxford Business Group has described expansion of the logistics sector as a national priority for Egypt, saying the government is engaging with the private sector and foreign investors on large-scale transport infrastructure projects.

In January, Hassan Allam Holding signed a deal with UK Export Finance to increase co-operation on projects across the Middle East and North Africa.

The agreement, signed at the British embassy in Cairo, aims to secure inward investment into the UK, promote financing for projects and encourage trade between the UK and Africa.