Interview with Captain Mahmoud Hamdy, Managing Director of Pyramid Navigation

Let’s start with the evaluation of the shipping and logistics industry in Egypt.

Thank you for coming and asking about Egypt. I am so happy that people like you are coming and are interested in Egypt. As you are aware Egypt connects Europe with the Far East and the Middle East through the Suez Canal which has this strategic position connecting Asia with Europe, including the Middle East. I am happy to tell you that a new project which has been announced by President Sisi will have a lot of impact in the next few years.

How has the shipping industry been affected by the recent political crisis and the lack of stability in the last few years?

The shipping industry has never been affected as most of the Egyptian ports which were secured, only for a few days during the Arab Spring. All international trade was running perfectly most of the time, except for those few days and only in certain ports in the Red Sea and the Mediterranean. The authorities and the government did a fantastic job in controlling the uprising at that time.

Could you give us your commentary on the recent development project that is the enlargement of the Suez Canal?

This is a national project to bring together all the Egyptian people supporting this project. It will give us a wider and deeper canal allowing ships to pass as well as the very large crude carriers (VLCC) and the new generation of container ships. Apart from widening the canal, there will be a new project to utilise the land and the area around the canal to bring more industrial projects either in Sinai or the Western desert.

Now let’s move on to the company which was established in 1978, Pyramid Navigation, which is a shipping company in Egypt. If you could tell us what type of product you transport?

Pyramid is mainly a ship-owning company which means that our activities are to own and manage ships and at certain times sell those ships as well as chartering in ships in common language rent the ships and run them for a certain period, then give them back to their original owner. Sometimes we also do something called contract of affreightment for a short period of time, so we bid within the Egyptian government for example, to transport grain from Australia, America, Argentina or wherever. Within a certain period, to transport a quantity of grain, for example. At that time, back in 1980/1981, we were awarded almost 1.1 million tonnes from Australia to Egypt and we successfully did it at that time and there was no competition, except from the Chinese, who lost by 2 pence or 4 cents or something like that from what we offered for the freight at that time. At that time the port of Safaga had no restrictions and you can directly be in the city but there was no city there at that time except for a few houses. We have a long history in shipping and we have been serving the country which is one of the things I am most proud and happy about.

Earlier you mentioned you have a very long history in shipping and you worried about the government products but I am sure you have a larger portfolio of clients apart from the government?

We did abroad. We did with a lot of big trading houses like Cargill and big names around the world. We chartered into them some of our ships so they use the ships for a long period of time. A lot of big names and very large trading houses around the world where they mainly trade in grain, coal, iron ore and all these kinds of things, so the question: why are they are using us? Because we are keeping our ships up to a very high standard. With high safety for the crew and the ships and we respect all international port rules and regulations where we trade. I am proud to say we have never had one of our ships stopped from entering a port. This is one of our main values.

If you could describe your fleet, what type of ships do you have?

We have oil tankers and Dry Bulk carriers and we have Panamaxes and Aframaxes and we have a Handysize as well. I am also proud to say that in 2003 we joined the Egyptian government in a joint venture for the LNG, a liquefied natural gas carrier where we made a very nice future contract for 20 years. It has nothing to do with Egypt but rather to do with worldwide trading.

Do you have any such planned contract for next year? 

We are open to any other good opportunities. We don’t like to rush into any opportunities; we like to take a good and serious approach, because we like to protect the shareholders as well as our partners and our counterparts. We all like to have a stable and balanced relationship between us and our other partners.

For the challenges - apart from the security of the Egyptian coast and perhaps the security situation in the Gulf of Aden, - what other types of challenges are there?

The Gulf of Aden earlier stages one of our ships had been hit by pirates. I was proud at that time that the captain of our ship was visited by the US Coastguard. It was announced all over the shipping magazines at that time and we succeeded to avoid the ship to be seized by pirates. It was one of the first incidents that happened in the Gulf of Aden. We saved the ship and we saved the crew and her cargo, also I am so happy and proud of those guys, those captains. This captain was a cadet and joined the company as a cadet back in 1983/1984. I am so happy about that.

Does the Gulf of Aden still pose considerable threats?

It is much better and safer now. There is still a risk of course, but now it is much better.

With all the EU coast guards and others.

There is a patrol and there are convoys to cross the dangerous area until it’s safe and there is always a military naval shipping there controlling all those ships.

Apart from the security are there any other challenges that you face, perhaps with getting human resources for the crew?

Human resources are always a challenge you know. The challenge is that any mistakes are usually down to human errors. The most important thing is to keep accumulated experience as much as we can until they reach the pension age of course.  But we are trying to keep all our crew within our ships and periodically we are sending them on small courses in the naval academy, here or sometimes abroad. We send them for some training in the UK at a very famous academy there. Of course it costs a lot, but sometimes we need this for our crew to get experience.

Is Pyramid Navigation the largest company in your sector?

No, we are the largest private company. There are some other government companies who are doing this shipping as well.

Let’s move onto the other company that you run - the Red Sea Resort company.

Through my younger brother who is an architect who has built several hotels, we have built a resort on 130,000m² to a very high standard in a place called the Sahl Hasheesh. It is a new area with a high calibre of clients there. Its one of the beautiful beaches which has a gulf, an open beach which anyone can walk on without any interference from hotels or anything else like that. I think the new trend will be to go to Sahl Hasheesh, not Hurghada or Sharm El Sheikh. This I believe and I do believe in the future of Sahl Hasheesh.

When did you start this project?

We started this project back in 2008 and it was unfortunately at the time of the economic crisis around the world when people stopped buying second or third homes. Before that, most Europeans and Egyptians were buying second or third homes. We were aiming this project at Europeans, as this the houses come fully furnished and fully completed so you can just bring your bags and your clothes and you don’t need anything else. It is built to a very highly standard and it is called Veranda Sahl Hasheesh or Veranda Egypt. It is one of the beautiful resorts, not just because we’re involved. I have visited several resorts around the world, in Turkey in several areas, as most of the year it is dry- there is no humidity. Of course in the summer it is a bit hot, but during the rest of the eight months it is wonderful.

And right now how is it going with the construction?

We have finished three phases and we have the other two phases to complete as the project consists of five phases. Now it is fully operational. We have a swimming pools, we have a pool bar, we have a large dining hall. We have a fantastic gym and we bought all of the equipment from America. It is fully air conditioned of course. We have croquet and tennis courts. It is a lovely place. And you if you guys want to go there for one week, we will offer you one week there to enjoy your time.

What percentage of the project is already sold or rented?

We have sold 150 flats, but I can’t remember the size of the flats. I think we have almost 300 built now, either flats or villas.

Half of that is already sold?

Almost, yes. And we are now making service flats. We have about ten or 15 so people can rent the flats and stay for one week or something through this very famous web page on the internet.

So you are targeting most of the European markets?

In the beginning, but now we are looking to just the local market, as Europeans have stopped buying now after the crisis. But we sold about 30 or something to Europeans. English, German and Czech. We have a very nice family from the Czech Republic. We have also sold it to Italians, there are some, a few. But there are a lot of Egyptians here now. I think it’s nice. If I decided to take my pension, I would go there. It is quiet.

Is there anything else you want to talk about that we didn’t mention about the shipping or the resort?

To encourage people, shipping is always, most of the time, away from any local events etc… Mainly they don’t affect it. It could be affected for very short periods, but it continues to trade as most of the world is trying to protect their trade. You understand. By having safe ports and trying to protect the safe ports. Everywhere. Not just here. In every country. Very good. Thank you very much.

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