By: Fahd Omran
Cairo - Mubasher: Suez Canal Container Terminal (SCCT) expects the Port Said dock to maintain the same level of trade achieved last year of 2.5 million containers in 2018, according to CEO Lars Vang Christensen.
Strong competition on the other side of the Mediterranean has pushed Maersk to increase trade by 40% from 2016 until now, Christensen told Mubasher on Wednesday.
The company’s station at the Port Said port has an annual capacity of 4.5 million containers.
Fees on a single container in the east Port Said port is almost triple that in in the Port of Piraeus in Greece, said the company’s head of public relations Hani El Nady.
Regarding competitiveness, Christensen stressed that that without the support of Maersk volumes would have declined even further.
The decision by the ministry of transportation to authorize ports to take the necessary measurements to increase the competitive level is a positive decision, the CEO added, noting that it opens the door for more motives, especially as his company has been pushing in this direction to level up the competitiveness of Egyptian ports.
SCCT remains optimistic regarding governmental efforts to support the sector and the port, the CEO added, despite that the decision to reduce fees by 50% for companies operating in the port of East Port Said did not provide enough support for the company, as some could think, with annual increases affecting discounts.
The company recently sold five old winches, as part of its new renovation plans.
SCCT has asked China Ocean Shipping Company (COSCO Shipping Lines) to raise trade on the port’s station, as it has declined since 2015.
Not a single container came from the Chinese line despite the COSCO accounting for 20% of the company’s capital.
SCCT previously offered to acquire the Chinese partner’s stake, as it refused to deal with the port’s management due to the higher prices, while Maersk is the biggest competitor.
The National Bank of Egypt (NBE) recently indicated plams to exit SCCT by selling its 5% stake, but Christensen revealed that there are no new developments in this regard.
