Landscape of China-Egypt · TEDA Suez Economic and Trade Cooperation Zone. Photo courtesy of China-Africa TEDA Investment Co., Ltd
"The six projects signed at that time in the cooperation zone totaled about 1 billion US dollars, which provided new opportunities for TEDA's future development and a new development path for the economic and trade development of China and Egypt." Speaking of the results achieved during the 2024 FOCAC summit, Walid · Jamaleddin is still delighted by the chairman of the General Directorate of the Suez Canal Economic Zone in Egypt.
The cooperation zone mentioned by Jamal al-Din is the China-·Egypt TEDA Suez Economic and Trade Cooperation Zone (hereinafter referred to as the TEDA Cooperation Zone), which is built by China-Africa TEDA Investment Co., Ltd. (hereinafter referred to as China-Africa TEDA) established by Tianjin TEDA Investment Holding Co., Ltd. and China-Africa Development Fund, which is located in the Suez Canal corridor. "At the beginning of construction, we paid attention to green and low-carbon and the integrated development of industry and city." Li Daixin, chairman of China-Africa TEDA, told reporters that this is the park with the best comprehensive environment, the largest investment density, the highest unit output and the most dense concentration of Chinese-funded enterprises in Egypt, which has been evaluated by the Egypt government as the future and hope of Egypt's economic development.
According to the China-Africa Development Report on the Belt and Road Initiative (hereinafter referred to as the "Report"), China and Africa will further implement the Memorandum of Understanding on Promoting Cooperation in Infrastructure Construction between the two sides, comprehensively accelerate the construction of high-speed rail, highways, aviation and industrialization infrastructure and other related facilities, and help promote the industrialization and urbanization process of the African continent.
China-Africa TEDA is just one of the countries that China and Egypt are working together to promote the industrialization and urbanization of the African continent. Over the years, the 10-day electrified light rail project in Egypt, which connects downtown Cairo with the new capital and satellite cities along the eastern route, has promoted transportation and economic development in the region and accelerated the process of urbanization. Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as GAC Group) is deeply engaged in the Egypt automobile market in the field of industrialization, actively arranges and builds assembly plants, improves the level of the overall automobile industry chain in Egypt, and contributes to the green transformation of the Egypt automobile industry...... China-Egypt cooperation has reached a new level and has become a model for China-Africa cooperation in the Belt and Road Initiative.
Contribute to Egypt's green and low-carbon development
Low-carbon development is a global consensus. The report proposes that China and Africa will adhere to the green and low-carbon direction in the Belt and Road Initiative, vigorously promote the construction of green development projects, and make important contributions to the global response to climate change.
China-Africa TEDA advocates the construction of green and ecological industrial parks to create harmony between people and nature in the region. "In the construction process, TEDA Cooperation Zone pays attention to the use of energy-saving materials and facilities, using vacuum double-glazed plastic steel windows and inverter central air conditioning to reduce the loss of cooling capacity and maximize the effective use of energy. In addition, all the main roads in the first phase of the 2-square-kilometer project of the TEDA Cooperation Zone are equipped with wind and solar complementary power generation street lights, becoming the first park in Egypt to use green energy street lights on a large scale. Li Daixin said.
Scientific and technological innovation leads low-carbon development. Egypt's Ramadan City electrified light rail project has the most voice. "The introduction of core equipment made in China has brought a number of 'first' breakthroughs to Egypt transportation infrastructure construction projects: such as the first application of AC 27.5 thousand volt traction power supply system, the first introduction of China's rail transit equipment, China's first signal CBTC train control system that meets European and American standards, the first application of contactless IC card stored value tickets, and the world's first rail transit industrial control network security system that meets IEC62443 series standards." Han Bao, general manager of the fifth department of the complete project of AVIC International Complete Equipment Co., Ltd. and the person in charge of the Chinese side of the project, revealed that the project has applied for a total of 8 patents, 3 invention patents and 1 utility model have been authorized, and the remaining patents are in the stage of "publicity" and "declaration".
"The construction and operation of the first and second phases of this project have greatly reduced greenhouse gas emissions and air pollution. So far, the operation of electric buses has reduced carbon emissions by about 20,000 tons, and the air quality index (AQI) of the areas along the route has improved by about 20% after the implementation of the project. Han Bao proudly said that it is expected that after the third phase of the project is connected with the first and second phases of the project in the future, about 12% of the traffic volume will be transferred, saving about 1,750 tons of carbon emissions per day, and effectively promoting the local energy conservation and emission reduction.
It is reported that the Egypt government attaches great importance to the promotion of electric vehicles, which will be more conducive to local environmental protection. "The current models introduced in the Egypt market are all fuel models, namely EMZOOM, GS4, EMPOW, and EMKOO." Feng Xingya, general manager of GAC Group and chairman of GAC International, said that the Egypt government looks forward to more in-depth cooperation with GAC Group in the field of new energy vehicles to promote the transformation and upgrading of Egypt's automotive industry, and the Egypt government will provide special permits for large groups such as GAC to invest and build factories in Egypt. "It is planned to introduce GAC new energy vehicles in Egypt in the near future, and some new energy vehicles have been shipped to Egypt, and are expected to be launched in Egypt in the fourth quarter of this year." He said.
Industry-city integration into Egypt
The integration of industry and city is the core essence of the scientific development of urbanization. The Chinese side has perfectly introduced this concept into the design and development of the TEDA Cooperation Zone. "The park needs to be supported by commercial and residential support to maximize the value of the area and land." Li Daixin introduced that after years of development, the park has built a comprehensive supporting service center, including apartments, restaurants, gyms, staff clubs, four-star hotels, amusement parks and other facilities, enriching the amateur cultural life of the settled employees and driving the commercial value of the park.
Prosper the city with production, and promote production with the prosperity of the city; Industry is the embodiment of the core competitiveness of the park, and the city is the symbol of the vitality of the park. At present, a number of Fortune 500 enterprises in China and even the world have gathered in the park, and many leading Chinese industry enterprises such as Jushi, Xidian, Universiade, Midea, Xinxing Cast Pipe, Fengshang, Wanhe have played a good exemplary role in leading Chinese enterprises to expand the world market, driving Egypt's industrial upgrading, and promoting Egypt's exports and employment. Egypt Prime Minister Madbouli commented that "the TEDA Cooperation Zone is an ideal model for the development of industrial parks in Egypt".
For example, since its establishment in 2012, Jushi Egypt has invested 1 billion US dollars to build multiple production lines with an annual output of 330,000 tons of glass fiber products, and its glass fiber production has made Egypt one of the world's top five glass fiber producers; Xidian-EGEMAC, a company jointly invested by China Xidian and the Ministry of Electric Power of Egypt, produces all high- and low-voltage electrical equipment using Chinese technology and standards; In addition, the production line of grain storage steel plate and feed machinery and equipment produced by Fengshang Group, the oil drilling equipment of Honghua Company, and the ductile tube casting project of Xinxing Pipe are all important enterprises to fill the gap in Egypt's industry.
According to the report, China will actively promote China-Africa industrial docking and cooperation, work with all parties to implement the Initiative on Supporting Africa's Industrialization, support Chinese enterprises to invest in Africa, and cooperate in building or upgrading a number of industrial parks, so as to help Africa's industrialization and economic diversification.
Located within about 50 kilometers east of Cairo, the Ramadan 10-Day City Electrified Light Rail Project in Egypt is planned for four phases with a total length of about 110 kilometers, becoming an important link connecting the urban area of Cairo with the new capital and satellite cities along the eastern route. The project is not only an important transportation project for Egypt to realize the "Eastward Development" strategy and focus on building the "Eastern Economic Corridor", but also provides solid transportation support for the planned new administrative capital (a city with an estimated population of about 5 million), accelerating the pace of industry-city integration along the route.
Building the Belt and Road Initiative between China and Africa
A new monument to cooperation
Egypt is the third largest economy in Africa and an important link between Asia, Africa and Europe, with unique geographical advantages, and the achievements of China-Egypt cooperation have set a new monument for China-Africa joint construction of the "Belt and Road".
In 2023, with the gradual opening of various functions of the new capital of Egypt and the completion of the first and second phases of the electrified light rail project in Egypt's Ramadan City on the 10th day, the travel of residents along the line has been greatly facilitated, and the passenger flow of the line has continued to rise. In August 2024, the average daily passenger flow has exceeded 10,000 passengers, and the cumulative ticket revenue has exceeded 60 million Egyptian pounds. It is expected that after the completion and opening of the third and fourth phases of the project, the passenger flow of the project may reach 100,000 people per day. At that time, it will certainly establish a good demonstration effect in the Middle East, the Arab world, and African countries.
"In addition to the third and fourth phases of the Ramadan City electrified light rail project, we also have a new capital line." Pointing to the current rail transit planning route map of the National Tunneling Bureau of Egypt, Salah, director of mechanical engineering of the National Tunneling Bureau of Egypt, told reporters that AVIC International is also welcome to participate in other subway and high-speed rail transit projects that are being planned and constructed in Egypt.
"GAC Group actively explores the African market, and currently has established a complete sales network in 16 African countries including Egypt, Nigeria, South Africa, Tunisia, Angola, Libya and Côte d'Ivoire, and has established assembly plants in Nigeria and Tunisia." Feng Xingya said that GAC Group will accelerate the landing of assembly plants in Egypt, build Egypt into a manufacturing base, export to neighboring countries, bring advanced products with exquisite craftsmanship and technological innovation to local consumers, and contribute GAC's strength to the upgrading of Africa's automobile industry, economic prosperity and people's happy life.
"The TEDA Cooperation Zone, which covers an area of 7.34 square kilometers, has excellent engineering quality and is a comprehensive and fully functional trade zone." Jamaleddin praised that at the same time, the TEDA Cooperation Zone has also attracted a lot of investment for Egypt, as of the end of June 2024, a total of 170 enterprises have been attracted to settle in, with a total investment of 2.1 billion US dollars, cumulative sales of about 4.9 billion US dollars, nearly 300 million US dollars in taxes and fees paid to Egypt, and nearly 10,000 jobs directly solved.
Jamal al-Din said that the construction of the TEDA Cooperation Zone has brought Egypt a strategic upgrade of its development strategy, increased employment opportunities, promoted the production of local products and reduced import demand, while also improving infrastructure and promoting the development of high and new technologies, in short, it has injected great vitality into Egypt's economic and trade development.
The just-concluded 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) has opened up broad prospects for further strengthening China-Egypt economic cooperation. In the future, Jamaleddin said that in the future, he will increase investment in green energy and new energy projects, as well as jointly build ports and training centers with the Chinese side to promote local development and improve the localization level of enterprise employees, "building on the previous successful cooperation model, and looking forward to achieving a win-win situation through further cooperation."
According to the report, China and Africa will jointly set up a number of regional vocational education centers and capacity-building colleges to continue to train vocational and technical talents for Africa, provide training places in China, help improve the quality of Africa's labor force, and inject new momentum into Africa's industrialization and urbanization.
■China City Daily reporter Ye Zhonghua