Egypt Third Party Logistics (3PL) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.59 Billion |
| Market Size (2029) | USD 4.89 Billion |
| CAGR (2024 - 2029) | 6.35 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Egypt Third Party Logistics (3PL) Market Analysis
The Egypt 3PL Market size is estimated at USD 3.59 billion in 2024, and is expected to reach USD 4.89 billion by 2029, growing at a CAGR of 6.35% during the forecast period (2024-2029).
The growth of the 3PL market in Egypt is primarily driven by the expansion of maritime transportation, while some obstacles, such as high logistics costs, may restrain market expansion. The increased maritime traffic is one of the main factors fueling growth in Egypt's 3PL industry. With access to the Red Sea and the Mediterranean Sea, Egypt's location makes the marine industry one of the nation's most important transportation sectors.
- More than 90% of the country's foreign trade is carried out by maritime transit. The maritime transportation industry is expanding thanks to the expansion of key industries like oil and gas, textiles, food processing, and construction.
- A customs and logistics center will be built and run by Agility, a pioneer in supply chain services, infrastructure, and investment, in the Suez Canal Economic Zone. Agility has spent USD 60 million to construct two 100,000 SQM customs and logistics centers, one in the industrial area of Ein Sokhna and the other in East Port Said. The project will be carried out in the second half of 2023.
- The maritime transportation industry is expanding due to the expansion of key industries like oil and gas, textiles, food processing, and construction. With 8.0% of global maritime traffic flowing through the Suez Canal annually, followed by an increase in foreign companies from Turkey, Spain, India, and China, Egypt is being exploited as a logistic hub for goods destined for the European market. In turn, this is expected to fuel the expansion of Egypt's 3PL market throughout the forecast period.
Egypt Third Party Logistics (3PL) Market Trends
This section covers the major market trends shaping the Egypt 3PL Market according to our research experts:
Growth in Maritime Transport in Egypt
Egypt is expanding the Suez Canal by widening and deepening an extra 30 kilometers while opening up an additional 10 kilometers for two-way trade. The project's second stage entails excavating 40 meters from the eastern side of the canal to broaden the 30-kilometer section running south to the canal's mouth. There will also be a six-foot increase in depth in this area where the Ever Given ship was grounded.
22,400 metric tons of aviation freight were moved through Egypt in April 2022. This was a decrease from April 2021 and the prior month. 42.1 million metric tons of cargo were transported by sea in the fourth quarter of 2021. Alexandria, Sokhna, Port Said, and Damietta are Egypt's four major ports and are getting closer to being fully utilized. Sokhna's and Damietta's utilization rates hit 94% and 90%, respectively. As a result, terminal operators have been expanding current facilities and constructing new ones.
Hutchison Ports announced investments in August totaling USD 700 million to establish two new ports at El Dekheila in Alexandria and Sokhna. The development of a new terminal in Abu Qir, in northeast Alexandria, has already been underway for two years. In addition, CMA CGM is constructing general cargo, roll-on/roll-off (RO/RO), and a 1.5 million TEU container terminal in Alexandria.
Increase in Infrastructure Investment Driving the Market
According to a report released by the Ministry of Planning and Economic Development on August 2022, the total targeted investments for the Egyptian transport sector are estimated to be around EGP 307 billion (USD 12.48 Billion) in the general plan for fiscal year (FY) 2022/2023, compared to EGP 240.7 billion (USD 9.78 Billion) for FY 2021. According to data, the transport sector is expected to produce EGP 672.4 billion (USD 27.33 Billion) at current prices in FY 2022/2023, up 14.7% from EGP 586.5 billion (USD 23.84 Billion) in the base year 2021/2022.
According to the Ministry of Transportation, Egypt has planned close to 80 projects in the transportation sector, including port development, container terminals, cruise berths, marine passenger terminals, multimodal transport, river ports, and metro in the process providing investment opportunities to the private sector. The anticipated cost of these initiatives, which are either in the planned or construction stages, is EGP 129 billion (USD 6.6 billion).
Egypt Third Party Logistics (3PL) Industry Overview
The 3PL market in Egypt is highly fragmented, with the presence of both domestic and international players in the country, including DHL, FedEx, UPS, and Aramex. Major companies engaged in the maritime freight business are Kuehne + Nagel, Panalpina, Expeditors, and Agility. With 'Vision 2030' in action and sustainable development being one of the key focus areas of logistics service providers, companies are adopting technological improvements, like electronic data interchange (EDI), radio frequency identification (RFID), cloud storage, automated machines, robotics, and electronic vehicles, to increase productivity and reduce the operating costs.
Egypt Third Party Logistics (3PL) Market Leaders
Agility
Aramex
DB Schenker
DCM
DHL Supply Chain
*Disclaimer: Major Players sorted in no particular order
Egypt Third Party Logistics (3PL) Market News
September 2022 - AD Ports Group has completed the acquisition of a 70% equity stake in Egypt's maritime firms, Transmar International Shipping Company (Transmar), and Transcargo International S.A.E. (TCI), in line with its strategy to increase its presence in the container, cargo, and port sectors throughout Egypt, the Gulf region, and along the Red Sea.
May 2022 - Mylerz, an e-commerce fulfillment firm based out of Cairo, intends to expand throughout Egypt in light of the recent USD 9.6 million funding it received. The firm also has its sights set on expanding the e-commerce sector in East Africa, with the long-term goal of developing into a pan-African shipping logistics provider.
Egypt Third Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Policies and Regulations
4.5 General Trends in the Warehousing Market
4.6 Demand from Other Segments, Such as CEP, Last Mile Delivery, and Cold Chain Logistics
4.7 Insights into the E-commerce Business
4.8 Technological Developments in the Logistics Sector
4.9 Industry Attractiveness - Porter's Five Forces Analysis
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Buyers/Consumers
4.9.3 Bargaining Power of Suppliers
4.9.4 Threat of Substitute Products
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil & Gas and Chemical
5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)
5.2.4 Pharma & Healthcare
5.2.5 Construction
5.2.6 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Agility
6.2.2 Aramex
6.2.3 DB Schenker
6.2.4 DCM
6.2.5 DHL Supply Chain
6.2.6 DP World Sokhna
6.2.7 Eastern Logistics
6.2.8 El Nada For International Services
6.2.9 Expeditors
6.2.10 FedEx
6.2.11 Intex Express
6.2.12 Kuehne+Nagel
6.2.13 Panalpina
6.2.14 UPS*
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
7.1 Recent Mergers and Acquisitions
8. FUTURE OF THE MARKET
9. DISCLAIMER
Egypt Third Party Logistics (3PL) Industry Segmentation
A 3PL (third-party logistics) provider offers outsourced logistics services, which include managing one or more aspects of procurement and fulfillment activities. The Egypt 3PL Market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and by end user (manufacturing & automotive, oil & gas and chemical, distributive trade (wholesale and retail trade including e-commerce), pharma and healthcare, construction, and other end users). The report offers market size and forecasts for the Egypt 3PL market in value (USD Billion) for all the above segments.
| By Service | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By End User | |
| Manufacturing and Automotive | |
| Oil & Gas and Chemical | |
| Distributive Trade (Wholesale and Retail trade including e-commerce) | |
| Pharma & Healthcare | |
| Construction | |
| Other End Users |
Egypt Third Party Logistics (3PL) Market Research FAQs
How big is the Egypt 3PL Market?
The Egypt 3PL Market size is expected to reach USD 3.59 billion in 2024 and grow at a CAGR of 6.35% to reach USD 4.89 billion by 2029.
What is the current Egypt 3PL Market size?
In 2024, the Egypt 3PL Market size is expected to reach USD 3.59 billion.
Who are the key players in Egypt 3PL Market?
Agility, Aramex, DB Schenker, DCM and DHL Supply Chain are the major companies operating in the Egypt 3PL Market.
What years does this Egypt 3PL Market cover, and what was the market size in 2023?
In 2023, the Egypt 3PL Market size was estimated at USD 3.38 billion. The report covers the Egypt 3PL Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Egypt 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
3PL in Egypt Industry Report
Statistics for the 2024 3PL in Egypt market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 3PL in Egypt analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
