Proposal to establish a global logistics distribution center in the Suez Canal Zone to support global trade

Logistics services andmodern supply chainsare among the basic pillars on which contemporary economies rely to enhance their competitiveness and increase their integration into the global trade system, in light of the rapid transformations the world is witnessing in patterns of production, distribution and trade exchange.

In this context, the importance of logistics centers and redistribution areas is increasing as strategic tools that contribute to facilitating the movement of goods and merchandise, raising the efficiency of transit trade, and attracting qualitative investments capable of creating added value to national economies,

These trends stand out as one of the main axes of supporting sustainable economic development, by maximizing the use of geographical advantages and advanced infrastructure, thus enhancing the position of countries as regional and international centers for trade and logistics services. This trend is consistent with the Sustainable Development Goals (SDGs), which link infrastructure development, enhancing economic growth, and raising the efficiency of global trade.

Attracting foreign investments and localizing projects

In this context, Dr. Mostafa Madbouly, Prime Minister, held a meeting; To discuss the proposal to establish a global logistics distribution center in the Suez Canal Economic Zone, in the presence of Dr. Mohamed Farid, Minister of Investment and Foreign Trade, and Mr. Walid Gamal El-Din, Chairman of the General Authority of the Suez Canal Economic Zone, and his Deputy for Investment and Promotion Affairs; Mr. Mustafa Shaikhoun, Dr. Mohamed Awad, CEO of the General Authority for Investment and Free Zones, and a number of officials.

The Prime Minister stressed that the state has promising plans to attract investments on an ongoing basis to the Suez Canal Economic Zone, as well as to localize important projects in it, and among those projects is a proposal to establish a global logistics distribution center within the economic zone.

He also explained that there are already offers submitted in this regard from some international companies, and work is being done to achieve this important goal, in light of the directives of His Excellency the President of the Republic to maximize the benefit from the national projects implemented by the state, support efforts to attract direct foreign investments, and strengthen Egypt’s position as a regional and global center for trade, logistics and supply chains.

Achieving the positive goals of the project

Dr. Mostafa Madbouly stressed the importance of cooperating with serious companies in this context, and completing an agreement with them, in order to achieve the positive goals of this important project, pointing out the necessity of having clear rules regarding the governance of these activities in general, while working to reach an integrated plan to support global trade, which contributes to attracting various international companies to establish global logistical distribution centers in the various development areas on the territory of Egypt, which supports Goal (17) concerned with strengthening partnerships. To achieve the goals, as one of the main drivers for achieving sustainable development and supporting integration in the global economy.

The meeting witnessed a review of the offers submitted by a number of companies to implement global logistical distribution centers for various goods and commodities, as well as indicating the steps for studying these offers in coordination between the General Authority of the Suez Canal Economic Zone, the Ministry of Investment and Foreign Trade, and the concerned authorities, in addition to presenting the demands submitted by a number of parties with the aim of accelerating the implementation of this major project.

Maximizing the benefits of infrastructure projects

During the meeting, it was pointed out that the promising opportunities for this project represent a major qualitative leap, as it provides Egypt with a strategic opportunity to enhance its regional role in managing global trade and distribution. Taking advantage of its unique geographical location and the huge investments that have been made in developing ports, infrastructure, transportation networks and logistics services, in a way that supports Goal (8) Decent Work and Economic Growth, and Goal (9) Industry, Innovation and Infrastructure

It also supports the transformation of the Suez Canal Economic Zone into a pivotal center for supporting international transit trade and redistribution at the regional and international levels, in addition to the indirect economic effects it achieves, namely stimulating port traffic, increasing demand for logistics services, supporting supply chains, and maximizing the state’s dollar revenue through storage, handling, and redistribution activities.

In conclusion, in light of the state’s integrated vision for developing the logistics infrastructure and strengthening its position within the global trade system, it is clear that the global logistics distribution center project in the Suez Canal Economic Zone represents a qualitative transition in the philosophy of managing trade movement from the traditional model to a model more integrated into international supply chains

This trend also emerges as one of the approaches to maximizing returns from national projects, by directly linking them to the global trade movement and foreign direct investment flows, thus creating an integrated system capable of accommodating the expansions of international companies in the areas of warehousing and supply chain management.

For its part,The Earth Guards Foundation believes that the project to establish a global logistics distribution center in the Suez Canal region, with its strategic geographical location and accumulated investments in ports, transport networks and logistics services, reshapes Egypt’s role as an effective hub in redistribution and transit trade processes, thus enhancing its ability to transform spatial advantage. To sustainable economic value.