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In addition, there are reports that Egypt has also entered into a preliminary agreement with a partnership between France's CMA CGM and Chinese companies Cosco and Hong Kong's Hutchison Ports.

Maersk operates Egypt's only container terminal located at the northern end of the Suez Canal. It opened in 2004 as a joint venture between APM Terminals, the Suez Canal Authority and other Egyptian companies and Cosco, reports Fort Lauderdale's Maritime Executive.

Located in East Port Said, the terminal already serves as a hub for distribution to the key markets in the Eastern Mediterranean. In 17 years of operations, SCCT reports it has handled more than 27,400 vessels with a total of 44 million TEU. Currently, half of the total container traffic in Egypt used Suez Canal Container Terminal (SCCT).

Under an agreement between the Suez Canal Authority and AP Moller-Maersk, the Danish shipping giant will reportedly invest $500 million, which will be used to add a new 3,200-foot container berth adjacent to the existing 1,600-foot berth.

The current 18 cranes will be increased to 30 with the new ones being electric cranes to contribute to improving the environmental performance of the terminal. The goal is to completely transform the terminal into a green operation by 2030. Maersk will also work to develop the terminal into a smart operation using current technologies.

This next phase of expansion comes after APM completed the phase II expansion of SCCT. That saw a capacity increase to 5.4 million TEU annually. A dredging project was also underway deepening the terminal's draft to over 57 feet. The terminal can handle the largest container vessels transiting the Suez Canal.

Three months ago, Hapag also announced that it would build a new terminal to be located near the Egyptian port of Damietta. Due to open in 2024, Hapag-Lloyd's terminal will have a capacity of 3.3 million TEU.

Reuters also carried a report last week citing a briefing to the Egyptian cabinet on two additional initial agreements for further terminal development. According to the report, CMA CGM, Cosco and Hutchison Ports will participate in a further port development programme that could total up to $800 million in investments.

The development of the ports is in line with Egypt's plans to become a commercial centre for the region. They are exploring other projects including LNG terminals and the possible production of hydrogen as part of the effort to develop alternative fuel supplies. They are also expanding the Suez Canal that is already reporting record volumes.