From Tianjin to TEDA: The Shortest Path for Chinese Used Cars to Export to Egypt

From Tianjin to TEDA: The Shortest Path for Chinese Used Cars to Export to Egypt
I saw this conversation on a used car export forum:

-How about second-hand car export to the Egyptian market?

-- Egypt banned the import of used cars!

Indeed, Egypt is one of only four countries in Africa to ban the import of used cars.

But there are exceptions to everything. Used car markets such as medical use, new energy, and truck heads are open in Egypt. Aiming at these market segments, the "China-Egypt Second-hand Car Direct Platform" jointly established by China-Africa TEDA Investment Co., Ltd., China Star North Automobile Trading Co., Ltd., and China Aid Import and Export Group Co., Ltd. has been launched, and the first batch of vehicles will soon be in Tianjin, China Set sail at the port, the destination is the China-Egypt TEDA Suez Economic and Trade Cooperation Zone (TEDA Cooperation Zone for short).

The transformation of a bonded warehouse

Once upon a time, China's second-hand cars to Africa, including Egypt, often went to Dubai, the "trade capital" of the Middle East and North Africa. It is no wonder that Dubai is an important trade re-export city 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 received official approval from the Egyptian General Customs Administration, allowing it to engage in empty and heavy container storage, bonded goods storage business, and designated Suez Customs for operational jurisdiction and customs supervision. Not long ago, the Egyptian government issued a decree: it will ban the import and storage of used cars in Port said and Alexandria in the next two years, and all such businesses will 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 will no longer approve the import and storage licenses of second-hand 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, and the Suez Canal Economic Zone currently and in the future, only TEDA Cooperation Zone has second-hand car import and storage qualifications.

If you think that the TEDA cooperation zone will rely on the unique advantage to monopolize the second-hand car import business, it would be underestimated TEDA's pattern. The TEDA Cooperation Zone is building a platform and forming a wide range of alliances. It plans to build an international second-hand car trading platform in the expansion zone with the structure of multiple "dual-zone linkages" at home and abroad, and develop vehicle operations, vehicle maintenance and modification, and auto parts with auto re-export trade as the core. Trading, auto supplies trading, auto finance and other businesses, finally, the development of complete automobile ecological chain, such as automobile assembly, parts manufacturing, transportation logistics, testing services and trading auction, will be formed.

If this market with a target size of 50 billion RMB 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

The size of the 50 billion deal can't be done overnight. The efforts of Central Africa TEDA, China Star North and China Aid Group are moving towards this goal. At present, the "China-Egypt used car direct platform" has at least built the shortest path from Chinese used cars to Egypt.

This route, which travels thousands of miles and takes more than a month, is not a complete journey by one person, but three start-up units that provide the best service in their best areas and form a complete closed loop.

With car rental, new car sales and auto parts wholesale as its main business, China Aid Group, which is good at import and export of goods, is mainly responsible for investing in the acquisition of second-hand cars in China (mainly in Tianjin) and providing high-quality and high-priced car sources. Huaxingbei, a well-known automobile service enterprise in Tianjin, which was established earlier, with large scale, rich experience and strong influence, mainly provides used car export inspection, export license processing, export declaration and other services; china-Africa TEDA, 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 business resources and has a deep brand image in the local area, and is responsible for customs clearance, sales and payment collection.

Every "pick-up" runner seems to be "overqualified", cooking small dishes lightly with the power of the dragon elephant, but with a serious attitude, lifting light as heavy. If a long chain is properly broken down into several independent parts, and professional and efficient services are provided in each link, the result will be higher speed and lower loss-such a path is not short.

The "China-Egypt Used Car Direct Platform" jointly built by China-Africa TEDA, China Star North and China Aid Group is an open track. The new runners form a "relay" rather than a competitive relationship with the three founding units-China Star North's old partner Qingdao Qianwan International Automobile Supply Chain Service Co., Ltd. has joined the platform with an unbundled relationship to provide cost-effective logistics and shipping for export cars.

Or subdivide the link, provide more valuable services, or superimpose the quantity, and expand the market scale. In any case, the more runners on this track, the bigger the cake will be, and the sea road for Chinese used cars to export to Egypt will be shorter.

To go further, every step further is a little closer to the establishment of a 50 billion-scale international used car trading platform in Egypt.

TEDA Cooperation Zone "China Used Cars Exported to Egypt" Business Welcome All walks of life to Join