I saw this conversation on a used car export forum:
How about exporting second-hand cars to the Egyptian market?
Egypt prohibits the import of second-hand cars!
Indeed, Egypt is one of the four countries in Africa that prohibit the import of used cars.
But there are exceptions to everything. The market for used cars such as medical use, new energy, and truck heads is open in Egypt. Aiming at these market segments, the "China Egypt Second-hand Vehicle Direct Platform" jointly established by China Africa Teda Investment Co., Ltd., Huaxing North Automobile Trade Co., Ltd., and ZhongYuan Import and Export Group Co., Ltd. has been launched, and the first batch of vehicles will soon set sail in Tianjin Port, China. The destination is the China Egypt Teda Suez Economic and Trade Cooperation Zone (hereinafter referred to as "Teda Cooperation Zone").
Transformation brought by a bonded warehouse
Once upon a time, second-hand cars from China to Africa, including Egypt, were frequently shipped to Dubai, the "trade capital" of Central and Northeast Africa. It's no wonder that Dubai is an important transit city for trade in the Middle East, Africa, Europe, and Southeast Asia, as well as a distribution center for used cars in the Middle East and Africa.
Now, things are quietly changing.
In December 2020, TEDA-Royal bonded warehouse was officially approved by the Egyptian General Administration of Customs, allowing it to engage in the storage of empty and heavy containers, bonded goods storage business, and designated Suez Customs for business jurisdiction and customs supervision. Not long ago, the Egyptian government issued a decree that it would ban the import and storage of second-hand cars in the Port Said and Alexandria regions within the next two years, and all such businesses would be transferred to the Suez Canal Economic Zone, where the TEDA Cooperation Zone is located. The General Administration of the Suez Canal Economic Zone stated that, in principle, it would not approve the import and storage licenses for used cars other than TEDA within three years.
In other words, Egypt's second-hand car import and storage business will gradually converge to the Suez Canal Economic Zone, while currently and for some time in the future, only the Taida Cooperation Zone has qualifications for second-hand car import and storage.
If you think that the Taida Cooperation Zone will monopolize the second-hand car import business by virtue of its unique advantage, you may underestimate the pattern of Taida. Taida Cooperation Zone is building a platform and forming alliances. It plans to establish an international second-hand car trading platform in the expansion zone with a structure of multiple "dual zone linkage" at home and abroad, and develop businesses such as vehicle operation, automobile repair and modification, automobile parts trading, automobile supplies trading, and automobile finance with automobile entrepot trade as the core, ultimately forming automobile assembly, parts manufacturing, transportation logistics, testing services The development of a complete automotive ecological chain such as trading and bidding.
If this market with a target size of 50 billion yuan is successfully established, Dubai may no longer be the only used car distribution center in the Middle East and Africa.
Professional relay to create the shortest path
A transaction scale of 50 billion yuan cannot be achieved overnight. The efforts of China Africa Taida, China Star North and ZhongYuan Group are advancing towards this goal. At present, the "China Egypt Used Car Direct Platform" has at least completed the shortest path for Chinese used cars to Egypt. This route, which runs thousands of nautical miles and takes more than a month, is not about completing the entire journey by one person. It is about three start-up companies providing the best services in their fields of expertise, forming a complete closed loop.
The main business is car leasing, sales of new cars, and wholesale of auto parts. At the same time, ZhongYuan Group, which specializes in the import and export of goods, is mainly responsible for investing in the acquisition of second-hand cars in China (mainly in Tianjin), providing high-quality and affordable car sources; Huaxing North, a well-known automotive service enterprise in Tianjin that was established earlier, has a large scale, rich experience, and strong influence, mainly provides services such as second-hand car export testing, export license processing, and export customs declaration; China Africa Taida, which has been deeply involved in Egypt for more than 10 years, has attracted the attention of the Chinese and Egyptian governments, is rich in political and commercial resources, and has a deep brand image in the local area. It is responsible for customs clearance, sales, and payment collection.
"Every runner who takes the baton seems to be overqualified and underemployed, cooking small delicacies lightly with the power of dragons and elephants, but with a serious attitude and a heavy lifting.". Properly dividing a long chain into several independent parts and providing professional and efficient services at each link will result in higher speeds and lower losses - a path that is not short.
The "China Egypt Second-hand Car Direct Platform" jointly built by China Africa Taida, China Star North and ZhongYuan Group is an open racetrack, with newly added runners forming a "relay" rather than a competitive relationship with three founding units. Qingdao Qianwan International Automobile Supply Chain Service Co., Ltd., an old partner of China Star North, has joined the platform in a non binding relationship to provide cost-effective logistics and shipping for export vehicles.
"Either segment, provide more valuable services, or add quantity to expand the market scale. In any case, the more runners on this track, the larger the cake made, and the shorter the sea route for Chinese second-hand cars to export to Egypt.".
Going further, with each additional step, it will be closer to establishing a 50 billion scale international second-hand car trading platform in Egypt.