The Egyptian Transport and Commercial Services Co (Egytrans) aims to compete for the energy projects that will be posed by the government this year, such as the Tahrir Mogamma (Complex) and the wind farm in Gabal El-Zeit to be put forward by the end of 2018.
Chairperson of the company, Abir Leheta, said that the company is awaiting the launch of the works for the Tahrir Complex.
The Tahrir Petrochemical Complex is one of the most important energy projects sought by the Egyptian government in the Suez Canal Economic Zone (SCZone) with investments of about $10.6bn.
The government is implementing a number of wind farm projects, including the expansion of the Gabal El-Zeit wind farm to reach 240 MW, to output 196,000 MWh every year, alongside another project with a capacity of 232 MW in cooperation with the Japanese government, planned to be inaugurated in June. This is in addition to a third 120 MW project in coordination with the Spanish government in the Gulf of Suez area.
In an interview with Daily News Egypt, Leheta said that the company is partaking in the Breakbulk Europe exhibition for the second consecutive year, which will be held in Germany, noting that the participation last year was important.
She pointed out that the exhibition is an opportunity to share experiences, introduce the company’s potentials, establish partnerships, identify new ones in the field of advanced equipment, and provide an opportunity to introduce the company’s plans to large companies.
She stressed that she does not need to buy equipment at the moment, as the company recently invested in new equipment covering the projects it is currently competing for, adding that buying new machinery depends on contracting new projects.
Meanwhile, Leheta highlighted the company’s interest in entering into activities accompanying the railway projects which the state has started to prepare for. It is currently studying alternatives to competition for the operation and management of logistics for railway lines, especially since the company is concerned with transporting goods.
Earlier this year, the government amended the law of the Egyptian National Railways to allow the entry of the private sector into the sector.
She pointed out that the expansion of the company in the ISO Tanks projects was fuelled by the increased demand for petrochemical projects, especially in the areas of Damietta and Port Said.
She explained that Egytrans is participating in the government’s plan to distribute electricity.
On the return of the company to invest in river transport, she stressed that the problem with entering this sector is the difficulty of obtaining licenses, which is being solved by the government, adding that the company is interested in the sector and will return to it when real opportunities arise.
Moreover, Leheta said that the company is not thinking about external expansion at present, but it is a long-term option in its future plans, considering that the local market has great momentum for opportunities.
She noted that the company bought a new headquarters in the Fifth Settlement area at a cost of EGP 25m, of which 50% was self-financed and the remainder funded through a bank loan.
She pointed out that the company is considering other investments in storage activities and EDS, a company for warehouse solutions, through the opening of a new site for the company and increasing internal transport.
She expected lower revenues and consolidated profits in the company’s estimated budget for the year 2018 versus last year.
Leheta explained that the projects implementation rate declined during 2018, which trimmed target revenues to EGP 230m and profits to EGP 48.5m.
The company denominates 60% of the market for the transport of exceptional equipment and parts for projects, such as power plants and wind farms.
Egytrans intends to offer a variety of services in the transport and logistics sector, with a focus on the profitability factor and taking into account the specific margins of expenses.
The company launched a pilot project for land transport. It owns a fleet of five cars, with plans to increase that fleet.
The company’s results for 2017 reflected a growth of 62.5% in revenues and 21.6% in net profit.
In the same context, the company announced in April new contracts worth EGP 50m to be signed in the coming months in the fields of traditional and renewable energy.