- Egypt’s shipping and logistics market reaches $14.56 billion in 2024, expected to grow to $18 billion by 2029.
- Plans underway to transform Egyptian seaports into smart green logistics hubs to boost global competitiveness.
- Industry leaders call for increased public-private cooperation to address challenges in international transport and logistics.
Egypt’s shipping and logistics market is demonstrating robust growth, with its value reaching $14.56 billion in 2024. Industry experts project this figure to surge to $18 billion by 2029, reflecting a compound annual growth rate (CAGR) of 4.33% during the forecast period. This growth comes despite various global challenges, including disruptions in the Red Sea and ongoing geopolitical tensions.
Amr El-Samadouni, Secretary-General of the International Transportation and Logistics Services Division at the Cairo Chamber of Commerce, emphasizes the critical need for increased cooperation between public and private sectors to address the hurdles facing international transport and logistics. These challenges include ship reluctance to enter certain regions, supply chain interruptions due to events in Gaza and Sudan, and the ongoing Russia-Ukraine conflict.
Smart Green Logistics Hubs: The Future of Egyptian Ports
El-Samadouni highlights the importance of transforming Egyptian seaports into smart green logistics hubs. This transformation involves:
- Connecting ports to international navigation networks
- Enhancing port workers’ efficiency on a global scale
- Implementing economic-based pricing for port services
- Establishing a logistics regulatory body and a higher logistics council
These initiatives aim to position Egypt as a global trade and logistics hub, capitalizing on its strategic geographical location.
Multimodal Transport and Integrated Logistics
To further boost Egypt’s position in the global logistics landscape, El-Samadouni calls for:
- Promoting multimodal and integrated transport systems
- Creating an observatory to track logistics performance
- Conducting research on sustainable port infrastructure projects
- Collaborating with global shipping companies to anticipate future ship sizes
“Activating ports as integrated logistics centres, linking them to global supply chains, and ensuring local and global integration will reduce costs and improve service quality,” El-Samadouni explains.
Addressing Global Challenges
The growth in Egypt’s shipping and logistics sector comes against a backdrop of global challenges. Port congestion resulting from increased global trade volumes, ship and container shortages, and supply chain disruptions have led to delays in goods transport and higher transportation costs.
To combat these issues, El-Samadouni stresses the importance of investment opportunities in ports and logistics fields. He advocates for comprehensive feasibility studies and learning from global port experiences to enhance supply chain resilience and maximize economic impact.
Looking Ahead
As Egypt positions itself as a key player in the global logistics arena, the rapid activation of ports as integrated logistics centres is crucial. This strategy aims to enhance services related to ships and cargo movement, fostering improvements in global supply chains.
With its projected growth and strategic initiatives, Egypt’s shipping and logistics sector is set to play a pivotal role in the country’s economic development and global trade facilitation in the coming years.
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Last Updated on July 8, 2024 by Safiya K
