23 July 2024 05:02 AM

Establishing Strategic Warehouses for Food Products

Friday، 02 February 2024 - 08:00 AM


Establishing strategic warehouses for food products is the largest national project of storage. The project aims to build 7 strategic warehouses in the governorates of Sharkia, Suez, Fayoum, Luxor, Greater Cairo, Kafr El-Sheikh, and Ismailia.


The project is being implemented in two phases..


The first phase will be in governorates of Suez - Fayoum - Luxor and Sharqia. The amount of the investments in the project reached EGP 4 billion.


The second stage will be in Cairo - Kafr El-Sheikh - Ismailia.


The strategic importance of the project


These warehouses are a qualitative leap in the trade system and part of the infrastructure. They identify inventory and goods electronically, and the warehouse includes different temperatures to preserve different goods.


Each strategic store can supply approximately 4 governorates with the goods they need.


These warehouses will enable the Ministry and its affiliated agencies to monitor the quantities of stored goods, as well as determine the type and size of the disbursed products, which will contribute to controlling the storage system and preventing any type of tampering.


In addition, the project will facilitate the inventory process and enable the Ministry to know the quantities in stock in all governorates and the quantities of goods available. The types and sizes of goods that need replacement or new supplies will also be determined, which will secure the country's needs for more than 25 basic and supply commodities, such as oil, rice, sugar, ghee and other commodities.


These warehouses contribute to raising the Egyptian state’s ranking in the Global Food Security Index.These strategic warehouses contribute to doubling the stock of goods and packaged products at the governorate level, as well as reducing the waste of finished products, and also reducing commercial circles.


1 – The strategic warehouse in Suez Governorate:


It is the first warehouse in this national project. It will be established according to the most advanced technology to manage commodity storage operations, ensuring the safety and quality of products on an area of 56 thousand square meters and 75 thousand pallets (95% dry stock, 4.5% cold stock, 0.5% frozen stock).


The warehouse will serve the governorates of the Suez Canal region, with an investment of approximately EGP 1.5 billion.


2 – The strategic warehouse in Luxor Governorate:


It is the second strategic warehouse within the first phase. It serves 4 governorates in Upper Egypt and its cost is about EGP 1.3 billion. Construction of the project is scheduled to take 18 months.


Hassan Allam Contracting Company is launching the project in partnership with the Egyptian Wholesale Trade Company, affiliated with the Ministry of Supply.


The contract stipulates that Hassan Allam Company will finance, manage and operate the warehouse, in exchange for a usufruct right for a period of 35 years, while “Egyptian Wholesale Trade” will undertake the provision of food supplies for the subsidized cards and supply them to the warehouse.




3 – The strategic warehouse in Fayoum Governorate:


The third strategic warehouse within the first phase. Orascom Construction Group is building the warehouse on an area of 10 acres, at a total cost ranging between EGP 1.5 and 2 billion. The construction of the project is scheduled to take between 18 to 24 months.



The strategic warehouse in Fayoum is financed, designed, constructed, operated and maintained in partnership with the Ministry of Supply and the Fayoum Company for Stores and Warehouses, with Orascom Construction overseeing the construction process.


The strategic Fayoum warehouse is located on an area of 38,385 square metres, and consists of the main warehouse, which can accommodate up to 75,000 pallets distributed between 71,250 pallets of dry materials and about 3,375 pallets of cold foodstuffs, in addition to 375 pallets of frozen materials.

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