Posted on March 22, 2020
Gamal Elsaeed has been running SADCO Engineering, based in Cairo, for over two decades, succeeding his father, Helmy, who founded the business in 1972. Gamal has multiple degrees in engineering from Texas A&M. His company has represented Ellicott Dredges for many decades, but also Great Lakes Dredge & Dock, a US Contractor, so he is well qualified for this conversation. Gamal’s son Helmy has recently joined the business.
DW – Tell us about the state of the Egyptian economy and how that has affected the dredging sector.
SADCO – Well the most important macro-economic issue was the substantial devaluation of the Egyptian pound against the dollar in 2016. The pound went from nine to the dollar to 19. So that was a big deal, and required a lot of adjustments by everybody. Since then the balance has actually stabilized and strengthened to about 16 to do the dollar. So things are looking better now.
DW – The most recognizable name in the sector in the region is of course the Suez Canal Authority. Tell us what’s new with them.
SADCO – The SCA successfully completed their $8 billion expansion project in 2017, which provided an extra water lane so that ships could now pass in two different directions at the same time. This included the purchase of new equipment from IHC, including both the hopper and a big cutter. SCA has also restarted the Ellicott bucket wheel dredge, the “Barakat,” first delivered around 1990 and still going strong.
It has also had many beneficial knock-on effects. Last year the SCA had the highest revenue ever. One of the contributing factors, besides the expansion project, was the curtailment of piracy, thanks to the Egyptian Navy acquiring two helicopter aircraft carriers for better surveillance.
DW – What other big projects are being planned or underway at the moment?
SADCO – The most important one by far is a 500 million m3 government project by the Ministry of Irrigation and Public Works to clean up some lakes for irrigation, sewer water retention and also for fishing. The project is called: “Lakes rehabilitation project.”
IHC has recently sold 10 medium size portable cutter dredges for this project, of which half were reportedly given as a gift from the Dutch.
DW – Any other projects worth noting?
SADCO – The Ministry of Electricity & Renewables has plans to continue to expand mining for Blacksand, which will likely involve dredging. The government has set up an investment arm to set up an economic zone along the Suez Canal, (SCZone), to take advantage of proximity to one of the world’s busiest shipping lanes. The government is spending billions of dollars over recent years to upgrade infrastructure around the canal, with the hope to attract logistics, maritime services, manufacturing, information technology and power industries.
DW – Tell what’s happening in the dredging equipment sector other than what you have mentioned above.
SADCO – The Dredging Supply Co. of the USA sold three small dredges to the Army and there have been some sales by Chinese companies, but not many. Ellicott has continued its long-standing relationship with Arab Contractors delivering the 18 inch dredge “Mahlab” named after the former Prime Minister.
DW – Thank you for your time Gamal.
Hope your 2020 is healthy and prosperous.
