Natsproektstroy considering involvement in transport infrastructure construction projects, localization of production in Egypt
CAIRO. Sept 16 (Interfax) - Infrastructure holding Natsproektstroy (NPS) is considering entering the Egyptian market to participate in infrastructure projects and subsequently localize production in the planned Russian Industrial Zone (RIZ).
NPS business development manager Denis Borisov told journalists that a Russian delegation had visited Cairo this week and the holding had been able to reach a partnership agreement with the Egyptian National Railways and National Authority for Tunnels.
"We agreed provisionally to sign a memorandum of understanding with National Railways and the National Authority for Tunnels. Going forward, we will exchange information and seek general points of entry in various projects," he said.
"We also want to offer our company's services in the development of ports along the Suez Canal zone, as well as local airports, roads and railways," he said.
NPS could also participate in infrastructure development projects within the RIZ, which is being built in the Suez Canal Economic Zone in Egypt. The holding is also prepared to consider building a production site in the RIZ, allowing it to enter the Egyptian market as well as that of other friendly countries.
"After visiting the Suez Canal zone and the Russian industrial zone, we began to think seriously about localizing production in the Russian industrial zone, since that will open up points of entry into markets in Africa, the Middle East and South America, considering the fact that the Suez Canal Economic Zone has trade agreements with a multitude of different countries and economic unions," Borisov said.
The company executive said that NPS currently had a presence in Russia and in CIS countries. "We are actively looking into expanding into Africa, the Middle East, South America and Southeast Asia," he said.
In terms of products which could be manufactured in the RIZ, Borisov cited the example of signaling control devices for railways. "We are considering localizing the production of these products in the Russian industrial zone with the aim of then re-exporting them, or in order for them to be used on the local market. We discussed this with the Egyptian authorities too," he said.
NPS plans to implement projects in Egypt using funds from foreign investors, though Borisov did not disclose any information on possible partnerships. "The financial aspect has not yet been discussed, but we are hoping that we will be able to either find foreign investors on the global market or secure funding from Egypt," he said.
The Natsproektstroy holding of 1520 Group and Arkady Rotenberg is Russia's largest infrastructure holding, uniting more than 100 companies that form three core divisions - roads and bridges, railways, and energy and ports. The holding's companies participate in major road and bridge construction projects in Russia, including facilities on the M-12 and other highways, and are also engaged in the development of railway infrastructure, including projects of the Eastern Polygon, the Central Transport Hub and the Moscow-St. Petersburg HSR.
