Cairo – Mubasher: Hassan Allam Utilities has teamed up with the Kuwaiti Agility Public Warehousing Company to form Yanmu as a joint venture (JV) that will allow the development, construction, and operation of modern logistics parks and Grade A warehousing facilities in Egypt.
The two entities unveiled that their first park, YANMU East Logistics Park, will span 270,000 square metres and will be located on the new Cairo Suez road, which is 15-kilometre away from Cairo Airport and with proximity to the Ring Road, according to a press release. It is expected to open in August 2023.
Meanwhile, the initial investment for the first park is estimated at $100 million (nearly KWD 30 million), according to a bourse disclosure by Agility, which is also listed on the UAE stock market. The investment will be financed in equity, in debt from the project finance, and jointly by the Egyptian and Kuwaiti companies.
Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, and Agility will establish a second park under the name YANMU West Logistics Park, which is scheduled to launch in 2024.
The JV parks aim to meet the storage and distribution needs of enterprises in several segments, including e-commerce, manufacturing, and consumer products. This is in addition to the fields of food and beverage, technology, automotive, energy, industrial goods, healthcare, pharmaceuticals, and other sectors.
Chairman of Hassan Allam Utilities, Amr Allam, commented: “YANMU will offer Egypt's most modern, efficient, and sustainable warehousing. We are proud to have strategically partnered with Agility, which has nearly four decades of experience in developing and operating Grade A warehousing across the Middle East, Africa, and Asia.”
Meanwhile, Tarek Sultan, the Vice Chairman of Agility, said: "When it comes to warehousing capacity and distribution capability, Egypt is underserved. YANMU will fill the gap with modern, efficient infrastructure that is going to power growth domestically and strengthen Egypt's role as a vital trade partner and crossroads.”
The two companies recently announced investments and expansion plans in Egypt; in October 2022, Agility said it would invest approximately $60 million to develop and operate two customs and logistics centres in the Suez Canal Economic Zone. The scheme’s objective is to enhance the flow of goods and commodities in Ain Sokhna industrial zone and at East Port Said.
In September last year, Hassan Allam Utilities entered two concession agreements to develop and operate strategic warehouses for the Internal Trade and Development Authority (ITDA) in Luxor and Sharqiyah.
The Egyptian firm had also partnered with the UAE-based Masdar for the development of green hydrogen production plants.