“Roots Commodities” bets on 7 companies to successfully operate the dry mass plant in “East Port Said”.

Roots Commodities, the leader of the implementation coalition for the clean dry bulk plant project in East Port Said Port, which recently signed an agreement with the Suez Canal Economic Authority under the usufructuary system for a period of 30 years, has number of successes achieved. criteria.

According to the economic studies related to the project, submitted by the company to the Suez Canal Economic Authority and obtained by Al Mal, the most important criteria for the project’s success is the formation of an alliance of 8 companies specialized in dry casting, trading, manufacturing, distribution and transportation.

The list of the alliance, according to the project study, includes companies: “Roots Commodities, UAE Rosa Green, Karawan Poultry and Feed Production, Belchar, North African Trade, UAE Al Ghurair and Badia.”

Roots Commodities’ study revealed that the project aims to benefit from the previously mentioned list of companies, combined in one scope, as it is possible to supply, import and trade goods from the country of origin drive, unload and transport, produce animal feed and establish an integrated food industrial complex based on the expertise of each company in the group.

The study stated that all participating companies would benefit from the East Port Said station, either in terms of the 18 meter deep draft or the ability to accommodate large ships, and not wait at the cellars, thus reducing waiting fines for consignment owners , which affects the cost of goods.

Roots Commodities stated in its study that it will rely on large-capacity unloading equipment, up to 4 giant cranes, with a capacity of up to 600 tons per hour for each winch, with a total unloading capacity of 48,000 tons per day.

Roots Commodities also intends to rely on closed automated belts connecting the discharge rate and silos to ensure that the discharge rates are compatible with storage, as well as to reduce the wastage of goods and the release of dust, in line with the port’s environmental standards .

The company aims to establish silos with a storage capacity of 750,000 tons of different grains and feed, and to achieve an annual trade volume of 6 million tons.

The company will also establish a specialized line for the production of horse feed in Egypt, especially since the Egyptian market imports most of its needs from England and Belgium, with the possibility of exporting to Arab countries, in addition to establishing a factory for screening and dumping pulses (beans and lentils) and packaging for export and to meet local demand.

The company intends to inject investments of nearly $500 million into the projects of the grain and feed plant and the value-added area and create jobs of up to 6,400 jobs.

The company confirmed that it will receive large ships of 80 to 120 thousand tons, specifically from relatively distant origins, including: “the United States, Canada and Brazil”, with the aim of saving on shipping costs, and part of the to attract ships. caught in the waiting lists of other Egyptian ports, suffering from demurrage fines, and thus reflected in the total price of the imported goods.

The studies of the project stated that the transit activity will enter neighboring countries for the first time, receiving large ship shipments and then partially re-shipping them to countries that cannot receive ships whose tonnage exceeds 12,000 tons, such as ” Lebanon, Cyprus, and the Greek Islands” or ships with a maximum tonnage of 25 thousand tons to the sister country Libya.

The project’s studies mentioned an increase in Egypt’s food exports to all countries of the world, especially the African continent, which reached almost $3.1 billion in 2018, and to $3.4 billion in 2019, including flour and pasta.

She emphasized that the project of the feed grain plant and the integrated manufacturing zone is an effective tool to reduce the final cost of manufactured products and achieve a competitive advantage that will increase exports in this sector, in addition to increasing demand from the local market.

The study of the project indicated that about 96% of the volume of grain and wheat traded in Egypt is through the Mediterranean ports, the vast majority of which is in the Dekheila port with capacity of up to 2.5 million tons, through 3 berths, then Damietta with a volume of up to 1.2 million tons through 5 berths, then a port Alexandria through two berths, Abu Qir Port, and West Port Said, then comes “Safaga” and “Al-Adabiya” to the Red Sea.

The company plans to establish 72 storage silos with a height of 27 meters and a diameter of 38 meters each, and a capacity of 10 thousand tons, with a total storage capacity of 725,000 tons, while the target capacity for the discharge of goods from 8 to 10 thousand tons, equivalent to 200,250 cars per day.

The company targets a trading rate of up to 90% of its turnover annually, in addition to 10% transit, which will be divided between 60% of which is wheat, 25% corn, 10% soy flour, jellies and distilled grains. at 4%, lentils and beans 1% of the total estimated quantities handled at the station.

The study expected that the market share of the station in Egypt would reach 14% in the tenth year of its operation, as the turnover rate of goods would reach about 8.3 cycles annually, at a rate of 40 days, and all the capacity of the station is traded, and it is expected that this rate will reach 10 cycles annually during the year The last of the franchise.

The station covers an area of ​​267,500 square meters, and a berth of up to 500 meters long and a depth of 18.5 meters.

Roots Commodities is active in grain and consumer goods trading in the local market, and Rosa is in the grain, oilseeds and multi-commodity trading and storage sector in the United Arab Emirates.

The study mentioned detailed definitions of the specializations of the work of the eight companies participating in the work after the establishment of the station, and came to the forefront of the entities, Roots Commodities, established in 2012, and working in the trade of grain and consumer goods in the local market, and the implementation of a movement of grain and pulses that trade with an annual trade volume of up to one million tons.

The company confirmed that it recently signed a long-term contract for the grain handling station owned by the Citadel Group, which is dependent on unloading ships at the internal anchorage of the port of Alexandria, and transporting goods by river barge to the station’s bay and then unloading with vertical silos with a capacity of 10,000 tons per silo, in addition to its contract Long term also with Cisco Trans in Dekheila and Damietta.

As for the second company within the alliance, it is the Emirates “Rosa Green”, which operates in the Arabian Gulf region through the ports of Bahrain, Qatar and Kuwait, and it has a long-term contract with the Union Port in the Emirate of Fujairah with a draft of 15 meters, which gives the company the commitment to manage a grain and feed station with an annual trade volume of 2 million tons.

And the third company in the alliance, “Karwan Poultry and Feed Production,” operates production farms in Wadi Natroun and Nubariya in the licensed desert interior. Since its inception, it has relied on poultry production from Holland and Belgium, and has a production capacity of 4 million birds annually, and aims to reach 10 million birds within a year.2025.

The fourth company in the alliance is “Belchar”, which is based in Australia, and makes direct purchases from producers of wheat and pulses, carries out internal trade in Australia and supplies to other countries, including Egypt, the UAE and Yemen, especially that Australia is one of the main suppliers of wheat to Egypt, as well as beans and lentils.

The alliance also includes the North Africa Trading Company, which acts as an agent for international companies in the production of production lines for mills, feed factories, pasta and various packing lines, and participated in the establishment of 7 companies and factories in the pasta activity in the local market.

The alliance also includes Al Ghurair UAE, which is one of the most important entities operating in feed and grain in the UAE and the Arabian Gulf, and which has been operating in Egypt since 2015. Soybean era in the Middle East with a capacity of 6 thousand tons per day.

The alliance also includes “Badia” company in Germany, which owns two ports in Germany and the Netherlands. Roots, the leader of the alliance, is linked to an exclusive trade and distribution agency contract in Egypt and Saudi Arabia, in addition to “Mira International ”, which is a strategic partner for Roots in the field of international trade and tenders and global stock exchanges.

According to the study, “Badia” intends to build a trading station for loading and unloading operations, feed and pulses in East Port Said Port, integrating it with manufacturing activities and achieving added value in the logistics area at the rear of the port, with the aim of supplying the local market with manufactured products at competitive prices as well as exporting vegetable products, in addition to opening New Markets by taking advantage of Egypt’s free trade agreements with African, Arab and European counterparts.

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