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Interview with Aly Al Etreby, Business Developer, SESCO Group

Aly Al Etreby discusses topics such as the logistical challenges facing coal importation, their dry bulk terminal 'El Dekheila' and the environmental considerations for coal handling.

You can hear more from SESCO's Aly Al Etreby at this year's 4th Coaltrans Middle East on 19-20 March 2018.

To find out more about our pre conference field trip to SESCO's dry bulk terminal El Dekheila please click here.

Coaltrans Conferences (CC): What do you see as the greatest logistical challenges facing coal importing in the Middle East?

Aly Al Etreby (AAE): In this section we will refer to the greatest logistical challenges facing coal imports in Egypt.

A.      Ports:
• Congestion: Egyptian ports are congested and the average waiting time for a ship to dock is around 1 week. This causes vessels to incur demurrage, consequently, the final cost of coal increases.
• Draft: The maximum allowed draft for coal vessels in all Egypt’s Mediterranean ports and the Adabya port (Red Sea) is 12.50 m, which limits vessel sizes to Supra max vessels which have a maximum capacity of around 50k tons. Only the Sukhna port (Red Sea) can receive up to PANAMAX vessels; nevertheless, it is only economical for a limited number of specific origin countries due to the freight cost to the Red Sea, such as South Africa and Mozambique.
• Discharging rates: The average discharging rate for most of the Egyptian stevedoring companies is 6000 tons/day

B.      Storage Capacity: The licensed storage capacity of coal which is fitted with the environmental safety requirements is very limited and doesn’t cover the current market demand.

C.      Transportation: The number of available trucks nowadays hardly covers the current imported volume of coal, and with the expected increase in coal consumption, Egypt will be in need for more trucks.

CC: How are SESCO’s facilities at El Dekheila port supporting the industry in overcoming these challenges?

AAE: The current facilities which SESCOTRANS has in Dekheila port help overcome some of the previously mentioned challenges such as discharging rate, as SESCO can easily reach up to 30,000 tons/day, but due to environmental restrictions for dust emissions on the docks, SESCOTRANS is limited to only 15-18 k tons/day.

SESCOTRANS is also tackling the transportation challenge as the company is currently increasing its truck fleet size to cover the increase in imported coal volume.

But the integrated solution for overcoming all of the challenges will be achieved once SESCOTRANS finishes building its new dirty bulk terminal in Dekheila port, which is expected to be ready by end of 2020. The terminal will consist of two docks with 250 m LOA each and will have a draft of 18 m which will allow receiving up to cape size vessels, consequently, decreasing the freight cost dramatically when compared to the current situation. The new terminal will also increase the discharging rate and reduce the congestion and waiting time which will limit demurrage and further reduce the freight and overall cost of coal.

The new terminal will have the capacity to receive up to 8 million tons of coal which will be sufficient to cover all of the country’s coal and pet coke import demand.

CC: Which countries are likely to dominate coal supplies for the Egyptian market?

: USA, Russia, South Africa and Mozambique.

CC: It’s looking like Egypt is set to increase its coal imports considerably over the next few years as the government ramps up construction of coal fired plants in response to the countries rising energy demand. How well are the logistical facilities in Egypt set up to deal with this?

AAE: The last two years coal and pet coke imports reached around 5 million tons annually, this year we expect to reach 6 million tons due to the new cement plants capacities coming online, and by 2020 we expect imports to reach 12 million as the two new power plants become operational.

The current logistical facilities are not set up to deal with double the amount of coal and pet coke imports, however, the government has begun taking steps to improve the road network around the ports linking them to major highways, there are also several new highways being built and improvements being made to existing ones, amongst other initiatives.

We believe that when the time comes the logistical facilities will be better suited to deal with the increase in demand.

CC: What are some of the environmental considerations for coal handling in Egypt and what are SESCO doing to uphold them?

There are many environmental considerations and safety regulations for coal handling in Egypt, however the main ones
being control of dust emission while discharging, handling, and transporting, as well as fire & safety regulations for storage. SESCO has carefully fitted all its equipment, trucks, and storage areas with the required facilities to control pollution and limit ignition of the coal, and will offer state of the art facilities in the new terminal when it comes to environmental safety.

CC:  Which question or industry issue are you most interested to hear discussed at this year’s conference in Egypt?

The effects of the new natural gas fields in Egypt on coal consumption.

You can hear more from SESCO's Aly Al Etreby at this year's 4th Coaltrans Middle East on 19-20 March 2018.



This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

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