Suez Canal Authority Signs $2 Billion Deal to Establish Petrochemical Complex in Ain Sokhna
In a major step toward enhancing Egypt’s industrial and maritime capabilities, the Suez Canal Authority (SCA) has signed a strategic partnership agreement with Anchorage Investments to develop a world-class petrochemical complex in Ain Sokhna, within the Suez Canal Economic Zone (SCZONE).
The project represents a cornerstone investment in Egypt’s strategy to expand industrial production, strengthen private-sector collaboration, and boost the nation’s position as a global trade and logistics hub.
A New Industrial Era for the Suez Canal Economic Zone
Located northwest of the Gulf of Suez, the Ain Sokhna petrochemical complex will be established on SCA-owned land, symbolizing the Authority’s proactive approach to diversifying its operations beyond navigation revenues.
This initiative aligns with Egypt’s broader national vision to develop sustainable industrial zones that complement the country’s robust maritime and logistics infrastructure. It also supports the integration of shipping, energy, and manufacturing, forming a powerful ecosystem within the Suez Canal Economic Zone.
Phase One: Polypropylene Production and Hydrogen By-Product
The first phase of the project, valued at over $2 billion, will focus on producing polypropylene (PP) using propane feedstock, a key industrial polymer used globally in packaging, automotive, and construction sectors. The process will also yield hydrogen as a by-product marking a forward-looking step in Egypt’s clean energy transition.
The second phase will expand output to include additional petrochemical derivatives and industrial support units, raising the total investment to approximately $4.5 billion.
When operational, the complex is expected to create more than 2,500 direct and indirect jobs, reduce Egypt’s reliance on petrochemical imports, and increase export capacity, generating substantial foreign exchange inflows.
Optimizing Canal Assets for Long-Term Growth
Admiral Osama Rabie, Chairperson of the Suez Canal Authority, reaffirmed that the project embodies the Authority’s long-term vision to maximize asset utilization and enhance economic resilience:
“The establishment of a petrochemical complex on the Authority’s land in Ain Sokhna reflects the Suez Canal’s strategy to optimize its assets, diversify its activities, and create multiple income streams,” he stated.
Rabie emphasized that strategic investments like this reinforce the Suez Canal’s role as a global logistics powerhouse, supporting Egypt’s ambition to attract industrial investment and enhance competitiveness in international trade.
Anchorage Investments: Partnering for Sustainable Industrial Development
Ahmed Moharram, Founder and Managing Director of Anchorage Investments, highlighted that the Anchorage Polypropylene Complex marks the first phase of a broader industrial vision aimed at positioning Egypt as a regional leader in petrochemical production and sustainable industrial growth.
He noted that the project integrates global expertise across engineering, construction, and technology, ensuring world-class governance, efficiency, and sustainability standards.
“Our partnership with the SCA builds on Egypt’s growing momentum in industrial diversification and aligns with international efforts toward energy transition and low-emission manufacturing,” Moharram said.
Driving Maritime and Energy Synergy
This new petrochemical investment further strengthens the strategic role of the Suez Canal Economic Zone as a regional energy and logistics hub, linking industrial operations with maritime connectivity.
By localizing petrochemical production and promoting sustainable exports, the Ain Sokhna complex will reduce transport distances, lower logistics costs, and enhance the overall efficiency of Egypt’s integrated maritime-industrial ecosystem.
Such synergy between industry, shipping, and logistics positions Egypt as a competitive hub for global trade, with the Suez Canal serving not only as a navigational corridor but also as an anchor point for economic transformation.
Ocean Shipping’s Perspective
At Ocean Shipping Egypt, we view this milestone as a defining development for the Egyptian maritime and logistics sector. The Suez Canal’s expansion into petrochemical manufacturing reflects a national commitment to economic diversification, industrial resilience, and supply chain integration.
As a leading provider of ship agency, chartering, and integrated marine logistics, Ocean Shipping continues to support the evolving needs of clients operating within Egypt’s ports and the Suez Canal corridor.
Projects like the Ain Sokhna Petrochemical Complex illustrate the growing interconnection between maritime services and industrial growth a synergy that drives efficiency across global supply chains.
Ocean Shipping Egypt remains committed to supporting Egypt’s maritime advancement through innovative logistics solutions, reliable port operations, and sustainable shipping services that align with the nation’s long-term growth strategy.
