Market Trends of Egypt 3PL Industry
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).
