Egypt is forming a new joint venture shipping operation to own and operate bulkers.
The country's cabinet said in a statement that it has agreed a draft bill to allow the state grains buyer, General Authority for Supply Commodities (GASC), to co-found a company to import and export commodities.
The company, to be known as Atlantic Pacific Company for Shipping and Trade, will focus on domestic and international business.
GASC tenders frequently for vegetable oils and wheat, of which it is the world's largest buyer.
Vessel contracts are often awarded to the state-owned National Navigation Co (NNC), which has 20 ships, comprising 12 bulkers of up to 80,000 dwt, four multipurpose vessels, three ro-ros and a boxship.
It is not clear if the new company will take over NNC ships or look to bring in its own.
GASC could not be contacted for comment.
Cairo-based GASC was set up in 1968 as a response to the crises arising in 1967, including the Six-Day War fought between Israel on one side and Egypt, Jordan and Syria on the other.
Activities scaled back
The company was procuring up to 50 commodities in the 1970s.
But the growing participation of the private sector, commissioned by the state, led to this number dwindling during the mid-1980s and into the 1990s.
Now GASC handles wheat, sugar, oil and tea.
Egyptian ship ownership is dominated by the government, which also controls tugs, product tankers and general cargoships, as well as a dredging and tug fleet through the Suez Canal Authority.
The biggest private owner is Maridive, with 43 offshore support ships.
