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On the rebound
Published in Al-Ahram Weekly on 10 - 02 - 2005

The port at Damietta is undergoing a large-scale transformation, reports Mustafa El-Menshawy
Damietta, at the eastern end of the Delta, has long been at the heart of Egypt's sweets and furniture industries. Its importance as a shipping centre, however, has been surpassed by that of Alexandria and the Suez Canal ports for well over a century. In July 1987, the governorate witnessed a promising new development with the opening of a multi-purpose port, located between the two existing Mediterranean harbours of Alexandria and Port Said.
The port has handled mostly grain, flour, and other bulk goods, and its annual capacity is now at 24 million tonnes. Furthermore, it is a first-class transshipment port, able to accommodate large vessels with a draught of 14.5 metres. Vessels can enter and exit the port 24 hours a day, and those passing through the Suez Canal either north or south bound can take advantage of Damietta's facilities without deviating off course.
Spread across a spacious 25 square kilometres, the Damietta port is also free of the storage and berthing limitations that have affected other ports in the country.
With these advantages in mind, the port has been selected to be the first electronically operated one in Egypt. President Hosni Mubarak re-opened the new and improved port in December after renovations to the tune of LE190 million. Many expect the port to eventually pass Alexandria and Port Said to become the largest port in Egypt.
"The new system will link all port members together providing real-time information and enabling them to exchange documents and finish all paperwork electronically," Farouq Abu Gindia, the vice- chairman of the Damietta Port Authority, told Al-Ahram Weekly.
The new system would save time, for a ship could be unloaded and discharged in two hours, rather than the current one week. Such processes as allocating ships their berths and weighing the vessel all would be carried out automatically.
Although the port officials promise that the new system will be handled efficiently, doubts remain. "Training port employees on the use of the new technology is not that easy, and needs time and effort," said Mahmoud Sami, an engineer working on the project.
The Damietta port has long been notorious for negligence and bribery, but the new developments should help combat corruption, with the electronic system allowing for more transparency at the port.
Those dealing with the port also worry that the modernisation's benefits might not pan out as hoped. More than two years ago, Al-Sukhna was also hyped as potentially the first electronic port in the country, but before long its development came to a virtual standstill in the face of bureaucratic obstacles. "We were told the same statements in October 2002, when the Al-Sukhna port opened, but the plans were not enacted," said Mohamed Fouad, a port customs facilitator. Fruit-exporting tycoon Abdu El-Reidi was more optimistic. "Now that the port has been modernised, we can export more and at lower cost than in our competitors in Turkey and Israel."
The costly renovations have already begun to pay off. In mid-January, the first tanker of liquefied natural gas (LNG) was exported from Damietta to Spain.
Within the port's free trade zone, the $1.3 billion plant was constructed through a joint Egyptian-Spanish investment, and is the largest and one of the most advanced in the world. The plant has an annual output capacity of four million tonnes, at a value of $250 million a year, with further expansions under consideration.
The adjoining canal linking the port to the Nile has also been upgraded, raising hopes for improved river transportation links between areas as distant as the Delta and Upper Egypt. The canal, now out of service for logistical reasons, could be used for transporting imports and exports at significantly reduced prices. The port has good railway connections and four- lane roads to Cairo and the cities of the Delta.
The citizens of Damietta Governorate, which has a population of roughly one million, are eagerly anticipating substantial benefits from the makeover. The port now employs 12,000 workers, with the number expected to rise to 40,000 after the expansion. "Of course we will benefit from the port's development, with more business coming in and more jobs created," said Mohamed Gamal, a cashier at a well-known restaurant in downtown Damietta.


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