Timsah Shipbuilding Company, the shipbuilding affiliate of Egypt's Suez Canal Authority, is evaluating a joint venture with Kenyan firm Tunasco to set up a specialized port and marine construction company in East Africa, the SCA said.

SCA Chairman Osama Rabie confirmed the proposal and tied it to Cairo's wider continental strategy. "The plan aligns with the authority's objectives to expand its presence in African markets, driven by the strategic partnerships linking Egypt with African nations," he said.

The talks mark a potential new direction for an authority that has historically generated revenue from transit fees and engineering works tied to the canal corridor itself. A dedicated foreign construction subsidiary would extend that base into a new geography.

What technical expertise would SCA export?

Rabie said the authority stands ready to provide know-how in five areas: port operations, marine construction, dredging, shipbuilding, and maritime training. The bundle draws on the SCA's experience managing expansion and maintenance works along the canal corridor.

For commercial buyers of port services in East Africa, the offer would integrate disciplines typically procured separately. Dredging contractors, terminal engineers, and training academies usually compete for individual contracts; a single integrated supplier backed by Egyptian state capital would consolidate that procurement chain under one roof.

What role would Tunasco play?

Kenyan firm Tunasco would provide the local interface. Its chairman, Abdulwalli Shariff, said he wants to "strengthen cooperation with the SCA and leverage its technical capabilities, human resources, and extensive experience in the maritime sector."

Neither party has disclosed the size of the proposed entity, the equity structure, target ports, or a launch timetable. The SCA has not announced when a binding agreement might be signed.

What would change for African port competition?

A permanent Kenyan base would convert the SCA's existing Africa cooperation agreements, typically framed as training missions and consultancy work, into an operating construction company. That shift would give Egypt a foothold in a market currently populated by Chinese contractors, European dredging specialists, and Gulf state-backed port operators.

For shippers, additional local capacity in marine construction and dredging could support deeper drafts at East African berths, faster terminal upgrades, and stronger competition for specialized harbor work. The downstream effect would touch port-call costs on intra-African and Asia–East Africa container trades, where Mombasa serves as the principal gateway.

The proposal remains at the feasibility stage. Both sides are expected to advance technical and financial studies before any binding agreement is announced, with Kenyan regulatory clearances likely to determine the pace of the rollout.