Press release
Egypt's Third Party Logistics (3PL) Market Poised for Growth and Economic Revival: Makreo Research Report Reveals Key Trends and Future Prospects
The Egypt Third Party Logistics Market is crucial for worldwide trade. Huge amount of money has been spent on infrastructure, with the logistics and transportation sectors receiving special attention. Egypt's third-party logistics business has risen steadily in recent years.Country's logistics profile is critical to the country's economic revival. The logistics services business has been growing at a rapid pace as the market for international commercial operations has expanded. Aside from the rapid expansion of international commercial operations, the integrated facilities of ports and the professionalism of logistics providers are the primary drivers of growth.
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► Dominance of Freight Forwarding
Egypt Third Party Logistics Market by services is divided into Freight Forwarding and Transportation, Warehousing and Value Added Services. The majority of the services market is dominated by freight forwarding and transportation.
► Mode of Transport
Roads play a key role in Egypt transport network, with 94% of Egypt's freight using roads. There is currently no logistics provider in Egypt with a consistent distribution infrastructure; there is also lack of services around road based transportation. Consequently, Egypt's road network is important to the country's economy, and the country needs greater investment in road networks in the underdeveloped south.
Egypt's proximity to the Mediterranean and Red Sea, connected by the Suez Canal, is a key component of the maritime transportation industry. The Suez Canal, which links the Mediterranean to the Red Sea and offers the shortest sea link between Asia and Europe, facilitates about 12% of global trade. According to data from the CBE, the transport and storage industry in Egypt has grown gradually in recent years, with real GDP growth rates of 3.2% in FY 2017/18, 4.1% in FY 2018/19, 3.9% in FY 2019/20, 4.6% in FY 2020/21, and 3.8% in FY 2021/22.
■ Sea Ports: Egypt has 40 seaports, including 12 commercial ports, 10 oil shipping ports, six ports for mining, Five marinas, and Six ports for fishing. The largest port in Egypt, Alexandria, and the Port of Dekheila, which is a natural extension of the Port of Alexandria, are among the most important ports.
■ Airports: Egypt has 73 airports with paved runways, five of which are international airports. The largest and most active airport is in Cairo, which is the second-busiest airport in Africa after O.R. Tambo in Johannesburg
■ Roadways: The majority of freight (94%) travels on Egyptian roadways, which increases the country's dependence on the maintenance of the road infrastructure.
► Notable Developments in Egypt Warehousing Sector
■ The Egyptian Armament Authority has signed a contract with the Orascom Weitz consortium to develop, build, and run six central self-financed strategic warehouses for medicines and medical equipment on behalf of the strategic warehouses firm. The project will be built on a total of 96 feddans, with a storage capacity of 190,000 pallets that can be expanded to 340,000 pallets.
■ The General Authority for Land and Dry Ports (GALDP) and a consortium of Egyptian enterprises have inked an agreement to construct and run an integrated logistics zone in Salloum, Matrouh governorate.
■ In 2023, Amazon will triple the storage capacity of its fulfilment centers across the country to approximately 100k cubic meters.
► Future Prospects in Egypt
■ Egypt has ambitious plans to build out its transport system. A total of 7,000km of roads will be built as part of this national initiative, at an estimated cost of close to USD 9.8 billion. The programme will expand the network from 23,500km to around 30,500km.
■ Egypt intends to invest over USD 38 billion in the development of its petrochemicals sector over the next four years. The petrochemical sector accounts for around 12% of industrial production and generates USD 7 billion in revenue, or roughly 3% of GDP.
■ Egypt Vision 2030 lists economic growth as a major part, which involves the development of the transportation infrastructure, which aims to transform the country into a production and distribution hub for Europe, the Middle East, and Africa. Project and contract logistics are anticipated to be in high demand as business and construction activity market penetration increases.
The research conducted by Makreo Research, titled "Egypt Third Party Logistics (3PL) Market Size and Forecast 2023-2028: Analysis by Mode of Transportation (Rail, Road, Air, Sea), Service Type (Freight Forwarding, Warehousing, Value-Added Services), and by Domestic and International Markets," offers a comprehensive analysis of the 3PL market in Egypt. This study thoroughly examines the industry's historical, current, and future perspectives, taking into account external factors like the COVID-19 pandemic and macroeconomic conditions.
The report specifically focuses on the transportation segment, encompassing both domestic and international transportation modes in Egypt. It evaluates various modes of transportation, including rail, road, air, and sea, providing insights into their market shares and the regulatory framework governing each mode. Furthermore, it investigates significant trade routes, key ports, and the impact of trade agreements on international transportation services. The research also presents a future outlook for Egypt's 3PL market, offering growth forecasts and identifying emerging opportunities and potential challenges. Technological advancements and their influence on the industry are also considered. Through an analysis of recent trends and macroeconomic factors, the report examines how external elements affect the industry's performance. Additionally, it includes a competitive landscape section that profiles major 3PL providers operating in Egypt.
Period of Study:
2018-2022 : Past and Present Scenario
2023-2028 : Future Outlook of the industry
Base Period : 2022
Market Assessment:
The report examines the Egypt Transport and Logistics Market Revenue on various parameters covering performance of the industry by Market (Freight Forwarding, Warehousing, Value Added Services), By Payment Method (COD and Online Payment), and By Freight Type (International Market and Domestic Market)
Competitive Landscape:
We have studied co-relation of major independent factors those have been covered under the sections:
■ Mergers, Acquisitions, and Investments
■ Company Profiles
■ Companies Covered : Agility Logistics, Aramex International, DHL Supply Chain, DB Schenker, Nile Logistics, World Cargo Egypt, EGY Logistics, and Khawass Logistics
To Know More:-
Egypt Third Party Logistics (3PL) Market Size and Forecast (2023-2028)- Analysis by Mode of Transportation (Rail, Road, Air, Sea), Service Type (Freight Forwarding, Warehousing, Value-Added Services), and by Domestic and International Markets
https://www.makreo.com/report/egypt-third-party-logistics-market-size-and-forecast-2023-2028
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Egypt Transportation and Logistics Market Size and Outlook to 2028
https://www.makreo.com/report/egypt-transportation-and-logistics-market-size-to-2028
Makreo Research and Consulting
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Makreo Research is a market research and consulting firm working closely with business conglomerates worldwide to assist them in many aspects of driving their business growth and making wise decisions with the help of our qualitative and quantitative market insights.
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