international
construction
december 2014
REGIONALREPORT
20
Growth amid turbulence
It would come as a much-needed boost to the Egyptian
economy, which has suffered ongoing instability since 2011’s
Arab Spring political uprising.
The canal work will involve deepening existing canal sections
to a depth of 24 m, elements of which will be carried out by
a consortium including Dutch engineering company Boskalis
Westminster.
It has confirmed that the project will be carried out using 17
cutting dredgers, with the timeline for
the work aiming for a tight completion
of next August.
Among the many companies involved
in its delivery is Caterpillar, with
its machinery including wheeled
loaders already on-site and handling
transportation ofmaterial.
As part of the scheme, there are also
plans tocreatea76,000km
2
international
logistics hub nearby, which the Suez
Canal PortAuthoritybelieveswill act as a
major driver for the economy.
It is understood that the canal’s
extension will boost its revenues from
a present level of US$ 5 billion to
US$ 13.5 billion by 2023.
However, concerns have already been expressed by the Baltic
and International Maritime Council, which warned against
potential large increases in fees for using the channel – which
presently costs larger vessels up toUS$ 1.2millionper two-way
journey.
Another significant project within the country has been the
expansion of Cairo International Airport.
This US$ 300million investment will see the extension of its
second terminal –whichwas closed last year tobegin theproject
scheduled for completionnext year.
It isbeingdesigned toaccommodate someof theworld’s largest
aircraft including the Airbus A380,
which will double passenger numbers to
around 7.5million a year.
Plans are also being progressed for the
extension of the metro system between
the airport and Giza – where the
country’s new Grand EgyptianMuseum
is being built close to the Pyramids.
The ambitious venture on the 120-acre
site 2 km from the country’s key tourism
destination includes a major conference
centre is said to be worth US$ 810
million and began in 2012.
Featuring virtual-reality technology
within its displays, the museum is
being designed by Arup and will feature a 121-tonne statue of
Ramesses II as its centerpiece.
Morocco
While manufacturers including Bobcat and Liebherr have
indicated there has been a slackening of pace within the
construction sector in Morocco, one of its core rail ventures
remains on track.
Last year, the country’s national railway operator confirmed
that a € 136 million (US$ 167 million) contract had been
awarded toColas Rail for the construction of a 185 kmdouble-
track line running betweenKenitra andTangiers.
It will feature 14 double deck trains, resulting in journey
times betweenTangiers andCasablancabeing reduced from220
minutes down to 140minutes and is expected to be operational
in 2016.
Other key developments within the country include plans
beingdrawnup todeliver a considerable boost to the residential
construction sector with 110,000 properties scheduled in the
countryby2020with support from aUS$50million loan from
the International FinanceCorporation.
Another further major infrastructure deal was made possible
by the IslamicDevelopmentBank,whichhas providedUS$272
million for improvement to the water supply infrastructure to
regions ofMorocco.
The comparatively modest levels of development that have
also been seen there and in other countries such as Tunisia
(which has economy growing at around +2% a year according
toTimetric), have contrasted sharplywith the fortunes of Libya
–which continues to be affected by political unrest.
This was further confirmed last monthwhen Libya’s Supreme
Court invalidated its internationally recognised parliament,
creating renewed political uncertainty.
As a result, global companies have remained cautious of
investment in the country - which otherwise has potential for
growth if its troubled politics can be resolved.
Despite this situation, the construction sector as a whole
within the region has shown a degree of resilience that has been
provedwith the ongoing delivery of key infrastructure plans.
iC
Work on the Suez Canal upgrade
has just begun, with Caterpillar
equipment in use at the site.
Egypt is aiming to
increase tourism
by 30%with the
creation of a its
new national
museum in Cairo.
Liebherr cranes
operating in
the desert in
Morocco.
