Partners, including NYK Lines, launch a new auto logistics facility near the Suez Canal
The Suez Canal Automotive Terminal (SCAT), Egypt's first dedicated terminal for finished vehicles, has officially been opened. Located at East Port Said, this significant development is set to operate for a period of 30 years.
The chronic shortage of storage space at Port Alexandria in Egypt was a key driver for the creation of the SCAT. As a new entry point to other markets, the terminal can potentially help mitigate the effects of disruptions, such as those experienced over the last year due to a series of attacks against vessels in the Red Sea, which have disrupted passage through the Suez Canal, a vital route for shipments between Europe and Asia.
The SCAT is designed to serve as a new receiving port and can accommodate two large car carriers simultaneously. It also includes cargo transhipment capabilities. The initial storage capacity of the terminal is for 2,550 vehicles, with plans to expand to 10,000 units when operations are fully underway.
The joint venture partners for the terminal are NYK Lines, Africa Global Logistics (AGL), and Toyota Tsusho Corporation. AGL, part of the Mediterranean Shipping Company (MSC) Group, focuses on logistics operations across Africa and is the primary partner for the terminal. NYK Lines and Toyota Tsusho Corporation have equal minority stakes.
Several shippers, including Møller Maersk, Mitsui OSK, and more, have diverted vessels away from the region entirely due to the disruptions in the Suez Canal. However, the creation of the SCAT offers a promising solution for OEMs and logistics partners facing global disruption due to port congestion, reduced vessel capacity, and volatile shipping lanes.
NYK Lines commented that the terminal is well positioned to contribute significantly to Egypt's development by capturing the increasing demand for automobile logistics in North Africa and the Eastern Mediterranean region. No information about the terminal's expansion plans or partners' stakes was provided.
While the Mediterranean Shipping Company Group is a key player in the region, there is no information available about their involvement at the Suez Canal Automotive Terminal specifically. The terminal's cargo transhipment capabilities remain undisclosed.
The creation of the SCAT was driven by expectations that both imports and exports of finished vehicles in the region will rise as the populations and economies continue to develop. This development is expected to boost the automotive industry in Egypt and the surrounding regions, offering a much-needed solution to the ongoing disruptions in the global logistics sector.
