21 October 2012    

Nile Cargo, a Portfolio Company of Nile Logistics, Citadel Capital’s Platform Company in the logistics, river transport and port management sector, has announced that it has taken delivery of 4 new dumb barges and 2 pushers bringing its fleet of custom-designed, fuel-efficient, environmentally friendly river barges up to 45 vessels.\n\nThe new barges, two 50-meters long and two 70-meters long, —each with a maximum loading capacity of 700 tons and 850 tons respectively, were designed by Ship Design Group, a renowned European design and engineering company, and built by the Alexandria Shipyard and the Arab Contractors Shipyard.\n\n“This new batch of barges marks the first output that we have seen from the Arab Contractors Shipyard which built the two 70-meter barges as well as the pushers that we have just received. We are very pleased with the outcome and look forward to receiving the remainder of the commissioned barges from Arab Contractors,” said Gen. Maged Farag, Chairman of the National Company for Multimodal Transport (NMT).\n\nNMT is a Nile Logistics holding company for Nile Cargo and National River Port Management Company (NRPMC), in addition to its other investments in transportation, storage and stevedoring services.\n\nThe new river barges are the fourth batch of new vessels that the company has received. Nile Cargo took receipt of its first two barges in late 2010, shortly followed by two 100-meter vessels then four 70-meter dumb barges earlier this year .\n\n“As more of our vessels come into operation, we are able to strengthen our competitive advantage in a fragmented market, and are better able to position ourselves as the service provider of choice among our key customers,” said Farag.\n\nCommenting on the importance of developing the river transportation sector in Egypt, Farag said, “fuel subsidies have led to an over-reliance on road transport because cheap fuel encourages the use of trucking as the primary mode of transport for products and goods.. Since the 1970’s the government has invested in road infrastructure at the expense of developing river transport.. But with the impending removal or reduction fuel subsidies, the river transportation sector can no longer be neglected.”\nOne river barge has the carrying capacity of 20-25 trucks making it a much more cost efficient and environmentally friendly mode of transport. Therefore, moving goods on the River Nile will soon become one of the most attractive propositions for the transport of large volumes of cargo.\n\nThe new barges will allow Nile Cargo to increase its capacity by 15%, while the efficient and environmentally considered design allows dramatically decreased per-unit shipping costs, while producing lower levels of emissions compared to road transportation.\n\n“We’re not only aiming to look after the environment, but to also reduce road accidents, create jobs, and lower the cost of transporting cargo for the Egyptian consumer through a more cost efficient operation,” said Farag.\n\nNile Cargo’s fleet of barges, which will reach 58 vessels (31 refurbished and 27 newly commissioned vessels) by the middle of 2014, are capable of carrying all types of dry bulk goods as well as containers with an annual volume of c. 2 billion ton-kilometers. Bureau Veritas (BV), one of the world’s leading marine certification bodies, is supervising barge construction and the classification process on behalf of Nile Cargo to ensure that the barges meet the highest international safety and quality standards.\n\nCitadel Capital effective ownership of Nile Logistics stands at more than 32%.\n\n—Ends—\n\nCitadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity-Specific Funds. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 9.5 billion in 15 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.2 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2007-2012, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.\n\nFor more information, please contact:\n\nMs. Ghada Hammouda\nHead of Corporate Communications\nCitadel Capital (S.A.E.)\n\nghammouda@citadelcapital.com\n\nTel: +20 2 2791-4440 • Fax: +20 22 791-4448\nMobile: +20 16 662-0002