Nile Logistics

Nile Logistics is Citadel Capital’s Platform Company in the logistics, river transport and port management sector with operations in Egypt and Sudan. Nile Logistics is home to four complementary portfolio companies that pursue business opportunities within the regional transportation and logistics sector. With a well-developed portfolio of services, Nile Logistics provides seamless door-to-door service for industrial and agricultural producers and traders in Egypt and Sudan, and also offers indirect services in Uganda, Ethiopia and Kenya. The four companies under Nile Logistics are: Nile Cargo, National River Port Management Company (NRPMC), Keer Marine, and Ostool Trucking Company.

Nile Cargo builds and operates a fleet of fuel efficient, environmentally friendly river barges with a geographical coverage that spans river transport routes from northern to southern Egypt. NRPMC owns and operates a network of river ports at strategic locations along Egypt’s navigable waterways to load and unload dry bulk materials and containers, providing services to Nile Cargo as well as to third parties.

Keer Marine, Nile Logistics’ arm in the underserved Sudanese market, operates a fleet of barges as well as ports connecting the north and south of Sudan. In addition, Nile Cargo also owns a 45% minority stake in Ostool Trucking Company, an acquisition that complements the company’s existing assets.

OPERATIONAL UPDATE

Nile Cargo took delivery of its first two state-of-the-art, custom-designed, environmentally friendly river barges in August 2010. The new 100-meter barges were designed by leading national and international consultants and constructed by the Alexandria Shipyard to meet the highest global standards in river transportation. The company took receipt of two additional vessels in March 2011, bringing its total fleet up to 35 operating barges. A further 11 barges are expected to be completed by the Alexandria Shipyard over the coming year. Six additional barges are in the process of being constructed by the Arab Contractors Shipyard in Helwan, south of Cairo. The company plans to contract European shipyards to undertake the construction on the remainder of Nile Cargo’s fleet, which will ultimately reach a total of 135 vessels. Nile Cargo’s fleet currently transports both bulk goods and containers, for a varied list of clients.

River ports operator NRPMC began official operations at its Tanash Port in the Greater Cairo Area in 1Q10. The inauguration of the Port coincided with the start of a strategic five-year contract to transport up to 2 million tons of wheat annually along the River Nile for the General Authority for Supply Commodities (GASC).

The 27,500-square-meter port currently handles bulk goods such as grains, metals and aggregates as well as containers. As NRPMC continues to develop, Tanash Port will serve as a hub for additional logistics services and will join a network of similar facilities along Egypt’s navigable waterways stretching from Alexandria to Upper Egypt. Going forward, the company will focus on developing smaller ports as a part of a larger nationwide network stretching into Upper Egypt, namely Beni Suef, Minya, and Aswan.

Keer Marine was acquired by Nile Logistics in a deal that included the purchase of multipurpose river barges and pushers. The company also owns a fleet of five convoys and a port in Kosti 300 kilometers south of Khartoum. Keer Marine currently operates the river route between Kosti and Juba, transporting bulk goods and petroleum products. In response to increasing demand for the transport of goods and petroleum products between North and South Sudan, the company’s management intends to further expand its fleet over the coming few years to reach 10 convoys.