Exporters say that an ongoing dispute between the Egyptian government and Dubai World, the company which runs the port of Ain Sokhna, has resulted in a halt on cargo exports for more than a month, with freight piling up at the seaport and exporters and importers incurring huge losses. Hossam Lashin, a member of the Chemicals and Fertilizers Export Council, said cargo has been accumulating in the seaport due to the dispute between the government and Dubai World which, he said, concerns "prohibited goods." Lashin said importers are pressuring Egyptian companies to commit to the delivery dates agreed upon in order to avoid fines. Meanwhile Ahmed Farag Saudi, undersecretary for the Ministry of Finance and head of the Customs Authority, announced that a joint meeting had taken place last week, attended by officials from the maritime transport sector, customs representatives, and officials from the Dubai World, to discuss an increase in demand which the seaport is unable to support, with operations already exceeding capacity by 120-140 percent. Ain Sokhna is the biggest port on the Red Sea with a dock for containers. Saudi said the company running the port has been instructed to make expansions and provide the area with more machinery in order to meet the soaring demand. Mohsen Ahmed, general director of customs at Ain Sokhna, said however that work in the port continues with no stoppages. He said incoming goods are being released normally, and denied there was any dispute with the government. Dubai World also dismissed the allegations. A senior source at the company said the customs authorities had adopted some measures to secure activity in the port, and that Dubai World had reacted positively to this. The source did not name the new measures, which are rumored to have been the reason for the delays. Saudi, on the other hand, attributed a halt in operations to a 25 percent increase in activity compared with last year. Translated from the Arabic Edition.
