DP World Sokhna: Integrated Supply Chain For Egyptian Sugar
Opinion-Editorial by Gerard van den Heuvel, Chief Executive Officer of DP World Sokhna and General Manager of DP World Egypt
Egypt is in the middle of a massive leap in sugar production, amounting to 2.6 million tons each year. While it currently sustains more than 90% of Egypt’s needs, it could also become a key export. Large government investments show the faith that the country has in the industry, and the Port of Ain Sokhna is ready to handle this increase in production and export.
To remain competitive, enterprises that serve large markets must continuously improve the efficiency of logistics operations between supply chain collaborators. Clients expect services that are cost-effective, accurate, and sustainable. It is imperative that logistics services help to meet these expectations. For years, the logistics and supply chain sector has shifted towards more integrated solutions for clientele. At the centre of this is the concept of a ‘one-stop-shop’, where packaging, storage, administrative processes, and delivery all come together to cut down on waiting times, improve delivery functionality, and, ultimately, lower costs.
This trend in integrated supply chain is not likely to change any time soon. Therefore, DP World Sokhna has created its own one-stop-shop. By leveraging our strategically placed centre of operations at the Port of Ain Sokhna, and implementing new infrastructure and digital solutions, we can adhere to these new market conditions.
Already, DP World Sokhna is established as a primary gateway to the Red Sea and is handling cargo transiting through one of the world’s busiest commercial waterways. The port is at the heart of one of the most vitally important East-West trade routes, which is why DP World has insisted on only the most cutting-edge technology and integrated port management approaches.
A prime example of how DP World Sokhna has committed to benefiting its clientele is the way we handle the vast amount of sugar being exported through our port each year.
Using port centric logistics, we currently deliver an integrated supply chain for the United Sugar Company of Egypt (USCE), through the creation of a one-stop-shop for importing raw material, manufacturing the sugar, and exporting it. This has minimised the time and cost of transportation from the port to the factory and vice versa. DP World Sokhna receives the sugar cane, used as a raw material for manufacturing processed sugar, unloads the ship it arrives on, and then transfers the raw material the United Sugar Company’s factory – located at our port.
Central to this large-scale process, is being able to accept the massive container vessels that house this sugar cane. Since it was upgraded, the Port of Ain Sokhna’s capacity has significantly increased and can now receive ships from cape size to Super Panamax.
DP World Sokhna has a capacity of approximately One Million TEUs (Twenty Foot Equivalent Units) annually, plus a further capacity of 750,000 TEU with the opening of its second basin. Because of this, larger containers of sugar cane can be received at once, reducing the shipping feeds for the company.
The transportation process has also been shortened and made more cost effective. The raw sugar cane is unloaded from ships quickly and effectively through our mobile harbour cranes and then transferred through a conveyor belt system directly to USCE’s factory – just 400 meters away from the harbour. Our processes have been streamlined to the point where no fee is required for customs, and this will be further improved by the proposed Special Economic Free Zone for Egypt.
Finally, after the sugar is manufactured and packed, it is exported through the port and received at one of DP World’s terminals.
Even though we rely on upgraded infrastructure and digital solutions at our one-stop-shop facility, at DP World Sokhna, we know that it is people who are at the core of our operations. We draw on the extensive knowledge, experience, and ideas of our talented workforce, training and developing them to reach their full potential, and by rewarding creativity and perseverance, we empower them to have the courage to go beyond our clients’ expectations.
It is their combined expertise and commitment to quality that means we always deliver value to our customers, generate long-term value for our business, and make a positive societal impact.
They will continue to be the drivers on our journey to create the most efficient, cost-effective, and sustainable port in the region.