Egypt Launches New Roro Ferry Service Between Damietta, Trieste Ports

(MENAFN- Daily News Egypt) Egypt launched a new Roll-on/Roll-off (RoRo) ferry service connecting Damietta port in Egypt to Trieste Port in Italy on November 29th, 2024. The service is expected to significantly boost trade and economic ties between the two countries, particularly in the agricultural sector.

The launch event, was attended by high-level government officials and private sector representatives, including Kamel El-Wazir, Egypt's Deputy Prime Minister for Industrial Development and Minister of industry and Transport; Alaa El-Din Farouk, Minister of Agriculture and Land Reclamation; and Rania Al-Mashat, Minister of Planning and Economic Development, marked a significant milestone for the development of a strategic transportation route.

El-Wazir highlighted the collaborative efforts that led to the successful launch of the service.“This conference brings together Egyptian, Italian, and global government and private sector representatives, including prominent Egyptian exporters and leading Italian and international companies supplying Egypt,” he stated.“Their participation highlights the project's importance and provides an opportunity for all parties to contribute to its success.”

He further emphasised the significant support provided by the Ministry of Transport from the initial stages of the project.“The Ministry has engaged in two rounds of Egyptian-Italian dialogue, in 2018 and 2019, to actively support the project and coordinate with all relevant ministries and bodies,” El-Wazir explained.“We have also worked closely with our Italian counterparts to establish working groups composed of experts from both countries to address key project elements, including port cooperation, ship operators, customs collaboration, land transport, and transported goods.”

El-Wazir outlined the comprehensive incentives offered by the Egyptian government to ensure the service's sustainability and economic viability. These incentives include:

• Reduction of port fees by 88%: This reduction, implemented on a reciprocal basis, will encourage greater utilisation of the service.
• Reduction of road tolls: Fees for trucks entering and exiting Egypt have been reduced from $300 to $100 per truck, regardless of whether they are imports or exports.
• Legal Framework: All legal documentation for the service has been signed with Italian counterparts, including a memorandum of understanding on port operations, a customs cooperation agreement, a letter of intent regarding the service on the ship, a governmental agreement for international transport to serve the RoRo line, and a government memorandum of understanding on land transport.

El-Wazir also highlighted the establishment of a specialised customs committee at Damietta Port, as per Ministerial Decision No. 682 of 2007, to expedite the clearance of textiles and their products. This measure aims to ensure the line's economic efficiency, particularly for Egyptian exporters returning from Italy.

“Promoting the service and the goods transported is crucial for its success,” he added.“We have collaborated with the Italian Trade Agency, the commercial representation, the Agricultural Products Export Council, the Federation of Egyptian Chambers of Commerce, and the Egyptian-Italian Business Council to promote the service. We have participated in international exhibitions such as Fruit Logistica in Berlin and Macfrut, and we will continue to promote it through this conference, bringing together exporters, importers, and Italian and international companies.”

El-Wazir emphasised the crucial role of the private sector in driving the project's success.“The Ministry of Transport and the Egyptian government have provided the necessary support for the line, and we need the private sector to contribute its expertise and resources for the project to thrive,” he said.

He outlined the timeline for the service's implementation:

• November 23rd, 2024: The vessel will arrive at Damietta Port to unload a shipment of trailers and empty containers and wait at the port's mooring area.
• November 29th, 2024: The official launch of the service. The vessel will depart from Damietta Port at 10:00 am and arrive at Trieste Port on December 2nd, 2024. A ceremony will be held at Damietta Port on Friday, November 29th, 2024, to commemorate the inaugural voyage.

Rania Al-Mashat, Minister of Planning and Economic Development, highlighted the project's significant role in increasing the export of Egyptian agricultural products to the European market.“The substantial development in the transport sector will positively impact other sectors, including trade and investment, making the Egyptian market more attractive for foreign investment, boosting employment, and contributing to economic growth,” she said.

Al-Mashat commended the Ministry of Transport and the private companies involved in the project. She emphasized the government's focus on empowering the private sector and promoting partnerships between the public and private sectors.“Attracting local and foreign investment is a key priority, especially after implementing numerous structural reforms to enhance Egypt's economic competitiveness, improve the business environment, and contribute to greater macroeconomic stability,” she said.

She also underscored the strong partnership with Italy within the broader context of Egypt's relations with the European Union.“The launch of the RoRo line is part of a number of regional projects, including the cross-border cooperation programme for the Mediterranean Basin countries for the years 2021 – 2027,” she said.

Alaa El-Din Farouk, Minister of Agriculture and Land Reclamation, emphasised the importance of the RoRo line for the transportation of agricultural produce.“This service supports rapid maritime transport, reducing the delivery time of Egyptian goods to Europe, encouraging greater Italian investment in Egypt,” he said.

Farouk highlighted the significant successes Egypt has achieved in agricultural exports, emphasising the country's global reputation for high-quality produce.“The Ministry of Agriculture is working tirelessly to enhance the competitiveness of our agricultural exports by developing a tracing and coding system for agricultural products,” he said. This system ensures rigorous control, beginning at the farm and extending to the port of destination in the importing country.

He added that Egyptian agricultural exports contribute to the country's foreign exchange reserves.“In recent years, total Egyptian fresh and processed agricultural exports have reached approximately $9.2bn,” he said.

Farouk stressed the importance of developing the capabilities of internationally accredited reference laboratories under the Ministry of Agriculture, noting the 24/7 operation of these labs to support agricultural producers, exporters, and other stakeholders. He also highlighted the establishment of a unified laboratory system at customs checkpoints.“This system consolidates all inspection and oversight functions in one location,” he explained.“This streamlined process reduces customs clearance time for imported and exported goods, bringing it down to 48 hours or less, depending on the type of goods.”

He added that the service will reduce transport time and costs for Egyptian agricultural products compared to air transport. It will also address the issue of capacity constraints during peak export seasons (November to January) for certain fresh produce, such as strawberries, grapes, and fresh vegetables while maintaining product quality.

“This project is a testament to our commitment to strengthening agricultural trade and investment between Egypt and Italy, creating a gateway for prosperity between Africa and Europe,” he said.

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