Smoother logistics

A huge logistics centre is being established at the Sokhna Port, Sherine Nasr reports

---

An Egyptian-Dutch joint venture is ready to run a state-of-the-art logistics centre at the Sokhna port, 40km south of Suez on the Red Sea. The Royal Wim Bosman (RWB) company was set up a few weeks ago as the logistics service provider in charge of the warehouse at the Sokhna Port. RWB will be responsible for the distribution of goods in addition to providing a vast variety of other services needed by clients dealing with the port.

The new company is the offspring of the Sokhna Port Development Company (SPDC) and the Netherlands-based Wim Bosman Group. Established under the General Authority for Investment's (GAFI) free zone decree, RWB is an Egyptian joint stock company with $2 million capital. Sixty per cent of the company's shares belong to SPDC and 40 per cent to Wim Bosman Group.

"Egypt has not yet experienced the values of an integrated logistics service provider. Traditionally, we did not have the infrastructure or the technology to offer such a service," said Ossama El-Sharif, president and CEO of SPDC who added that one of the big disadvantages of warehouses affiliated to ports in Egypt is that they are not automated and ports were generally inadequately equipped.

Scheduled to start operating next month, the new company will run the 4,000 square metre warehouse which already exists at Sokhna Port.

"Fortunately, the warehouse at Sokhna is fully computerised, therefore it is easy to know at any given time how many items are stored, when they were delivered, and when they are due out," said El-Sharif.

Established in 1972, Wim Bosman Group has evolved into a major European logistics company operating in eight countries, including France, Romania and Belgium. Managing a total warehouse capacity of 170,000 square metres, the company had a turnover of 220 million euros in 2004.

"It was not difficult for the group to take the decision to come and invest in Egypt. Geographically, Egypt is perfectly situated. It is a connecting country for cargo flows. What it really needs is a high-quality logistics service provider which can efficiently manage a growing bulk of imports and exports," said Wim Bosman, CEO of the Dutch company.

It is worth noting that a new 10,000 square metre logistics centre will be built by 2006. The RWB will offer clients a tailored logistics package which include warehousing, customs services and distribution. Other value added activities include order management, assembly, invoicing and stock control.

"Moreover, we place great value in training our people as they are the ones who are in direct contact with customers," said Bosman who added that Egyptian staff will receive training courses in the Netherlands as they join the company. "The staff will later form the basis for training more staff members. It is expected that the new company will provide at least 300 job opportunities," said Bosman.