Egyptian President Abdel Fattah al-Sisi has given the go ahead for a "global logistics hub" for grain storage, one of several efforts the government is pursuing to boost efficiency in the sector and lower imports. The world's largest wheat importer is looking to cut its 32 billion Egyptian pound ($4.5 billion) annual food import bill.
Sisi's office said in a statement the president met Supplies Minister Khaled Hanafi and Planning Minister Ashraf al-Arabi on Sunday to discuss the project, intended to make Egypt an international focal point for the handling and storage of grain and other commodities such as sugar, oil and animal feed.
The supplies minister has said the project will help Egypt better secure the country's own reserves of the strategic crop while also exporting flour and other goods to regional markets. The minister said in June he hopes to tap China's expertise in grain logistics and transport systems.
According to the statement, the president said he wanted it completed within two years. The project "would contribute to transforming Egypt into a modern state that takes advantage of its geographical location and its potential, and helps to attract serious national or foreign investment", it said.
Though the official price tag on the project was announced as 15 billion Egyptian pounds in Sisi's statement, no details have yet been released about how it would be financed.
It is improving its local storage capacity to cut waste of the crop with the help of one of its Gulf Arab backers, the United Arab Emirates, which is funding the construction of 25 silos to raise storage capacity by 1.5 million tonnes.
The supplies ministry is spearheading reforms to the subsidised bread programme that millions of Egyptians rely on. It is rolling out a "smart card" system the government says will eventually bring down consumption without hurting poor Egyptians and will target corrupt parts of the bread supply chain.
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