EGYPT FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Egyptian logistics expenditure is expected to cross USD 50 billion by 2024. Egypt is evolving as one of the major trading countries and creates a wide range of opportunities for the logistics service providers. As per Logistic Performance Index for 2018, Egypt, with a rank of 67, has slipped down from its previous position of 42 in 2016. The primary reason for the drastic fall is the reduction of tracking and tracing capabilities and poor performance of the country in international shipments. Moreover, the government aims to make the country a production and distribution hub to serve Europe and the Middle East & Africa. Additionally, Egypt Vision 2030 entitled economic development as an essential section, which includes the development of the transportation infrastructure. The increase in market penetration of companies and construction activities is expected to create a demand for project and contract logistics.

• Egypt is expected to record the highest growth in the Levant and North Africa region, accelerating at a rate of 4.2% in 2017 to around 5.0% by 2019 and 5.5% by 2021, according to Moody’s.
• Construction is one of the major contributors to the domestic economy and freight and logistics industry. In 2016, the construction sector’s output increased by 10.3%, a significant increase after growing at an average of 5.3% in the past four years. This growth trend was maintained in 2017, with a rate of 7.3% in the first nine months of FY 2016-2017.

Scope of the Report

The report covers segments of the freight and logistics industry, like freight forwarder, freight transportation, warehousing, courier express and parcel, and other value-added services. The report also provides insights on e-commerce, free trade zones, and government regulations and initiatives. Overview of some of the major international and local players is also provided to understand the competitive landscape.

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Key Market Trends

Maritime Transportation in Egypt is Expected to Grow Further

Due to the strategic geographical location, Egypt has excellent access to the Mediterranean Sea on one side and the Red Sea on the other. This makes the maritime sector of the country the most important in Africa. Almost 90% of the country’s international trade flow (in terms of volume) occurs through sea transport, which is a significant contribution to the country’s economy. Egypt, under the plan ‘Vision 2030’, aims to increase the handling capacity of ports to 370 million metric ton by 2030, from 120 million metric ton. Major developments include the construction of port terminals by Red Sea Ports Authority and the development of Port Said.
Moreover, the Suez Canal, which is the artificial waterway, connects the Mediterranean Sea with the Red Sea. More than 10% of world trade volume happens through the Suez Canal. The Suez Canal tolls are a significant source of revenue. Furthermore, Suez Canal Zone is expected to attract approximately USD 30 billion through FDI.

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