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Egypt's Thriving Logistics Industry: A Gateway to Global Trade and Investment Opportunities

09-08-2023 09:38 AM CET | Logistics & Transport

Press release from: Makreo Research And Consulting

Egypt's Thriving Logistics Industry: A Gateway to Global Trade

► Egypt's Transportation and Logistics Market Performance and Outlook to 2028
Egypt, a key player in global trade, is witnessing remarkable developments in its logistics industry, attracting businesses eager to expand or relocate their production lines. This surge in interest can be attributed to the strategic location of Egypt, with the Nile River and the Suez Canal connecting Europe, Asia, and Africa.

► Strategic Location Fuels Economic Growth: Egypt's geographical advantage is underscored by its 15 Mediterranean ports and 33 Red Sea ports. These extensive maritime connections have positioned Egypt as a major hub in global trade. Notably, the transportation and storage sector (excluding the Suez Canal) contributed approximately 5% to the country's GDP in the first quarter of 2019, with a significant 11% share of total investments.

► Economic Impact and Investment Inflow: In FY 2018/19, this sector contributed 2% to Egypt's GDP and attracted a substantial investment of USD 5.8 billion in 2019. A staggering 18,400 vessels, carrying a total of 1.2 billion tons, navigated through the Suez Canal during FY 2018/19. Currently, the canal serves as a vital route for 13% of ships and 20% of container vessels worldwide. Egypt's thriving logistics industry is not only boosting its economy but also reshaping global trade dynamics.

Request the FREE SAMPLE REPORT:
https://www.makreo.com/report/egypt-third-party-logistics-market-size-and-forecast-2023-2028

► Market Overview:
The demand for logistics services, warehousing, and storage operations in Egypt remains substantial due to its pivotal role in facilitating global trade through the Suez Canal in 2022. Recognizing this potential, the Egyptian government has embarked on initiatives aimed at elevating the nation to the status of a global logistics hub, with a particular focus on attracting foreign investment across various sectors.

Egypt predominantly relies on its road network for freight transportation, underscoring the government's commitment to its maintenance and development. This strategic approach ensures the efficient flow of goods and sustains the nation's prominence in the global logistics landscape.

■ By Mode of Transport: The transport and logistics market in Egypt can be categorized into several modes of transport, namely Road Freight, Sea Freight, and Air Freight. Notably, Road Freight dominates this market, commanding a substantial market share exceeding 90%. It is followed by Marine Freight, Airfreight, and Rail Freight in terms of market presence. Egypt's strategic positioning within the North African region bestows upon transportation and logistics companies a unique advantage. This geographical advantage translates into unparalleled access to a rapidly expanding regional clientele spanning Europe, the Middle East, and Africa. It enables these companies to offer the swiftest turnaround times for freight and the shortest transit durations between key transportation hubs such as seaports, airports, and industrial zones.

■ By Market: Egypt's strategic geographic positioning and expanding infrastructure are elevating its status as a vital global logistics hub. This development is increasingly attracting businesses seeking to engage in commerce between or within the continents of Europe, Asia, and Africa. Within Egypt's dynamic transport and logistics market, it can be segmented into two key categories: Freight Forwarding and Warehousing. Among these segments, Freight Forwarding emerges as the dominant revenue contributor, commanding a significant share of more than 60% in the industry's revenues. It is closely followed by the Warehousing segment.

■ By Payment Method: The payment landscape in Egypt's transport and logistics market can be categorized into two primary methods: Cash on Delivery (COD) and Online Payments. Cash on Delivery (COD) remains the dominant and favored payment method embraced by merchants across the country. This preference can be attributed to the relatively low confidence among customers in conducting online transactions and the limited penetration of card-based payments in Egypt. Egyptian customers express a strong preference for Cash on Delivery (COD) due to its perceived value and simplicity. One of its key advantages lies in the absence of additional fees, making it an attractive and cost-effective option for both businesses and consumers alike.

■ By Freight Type: Egypt's transport and logistics market can be categorized into two distinct freight types: International and Domestic Market. In this market, the Domestic Delivery Market segment maintains its dominant position, boasting a substantial market share exceeding 60%. It is followed by the International Market segment. Significant improvements have been witnessed in Egypt's logistics sector since the political turmoil of 2013. These positive changes are attributed to several factors, including an enhanced business environment within the nation. Importantly, trade volumes have rebounded, returning to pre-crisis levels.

► Key Findings
■ Egypt Launches New Trade Technology - Egypt's government has introduced a fully automated customs process that will significantly reduce processing time and costs for companies exporting to the country. ACI, Egypt's new trade facilitation technology, was successfully implemented across all of its ports on October 1 2022.

■ Suez Canal Economic Zone - An agreement has been signed between the Suez Canal Economic Zone and Agility to operate and develop a customs and logistics center. The SCZone will establish a technical and logistical arm that will automate customs processes and operations in the SCZone through Agility's strategic vision in the areas of services, logistics, and industrial zone support.

Increasing Investment: Egypt strives to become transport, logistics hub by 2024
■ Through a large 10-year plan to update its transportation infrastructure, Egypt will become one of the key global hubs for logistics and transportation by 2024.
■ A total of EGP 474 billion will be spent on roads and bridges, EGP 225 billion on railroads, EGP 837 billion on tunnels and electric traction, EGP 115 billion on maritime transport, EGP 15 billion on dry ports and logistics, and EGP 3 billion on river transport as part of the six major areas covered by the plan.
■ By the end of 2024, projects like the monorail, the high-speed electric train, and port improvements will be finished. By the end of 2024, the minister estimated that 30,000 km of new and improved roads will be finished.

The study conducted by Makreo Research on the "Egypt Transportation and Logistics Market Performance Outlook (2018-2028)" provides a comprehensive analysis of the market, encompassing a wide range of factors. The report takes into account both qualitative and quantitative factors, indicating a well-rounded approach to analysis. The inclusion of both qualitative and quantitative factors in the study ensures that readers gain a more complete understanding of the Egypt transportation and logistics Market. It goes beyond mere numbers and incorporates insights into consumer behavior, industry trends, and market dynamics. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the logistics market in Egypt. Moreover, the report's focus on past and present performance, as well as potential growth opportunities in the future, enables readers to identify key areas of interest and investment.

■ Period of Study
2018-2021: Past and Present Scenario
2021: Base Year
2022-2028: Future Outlook of the Industry
Market Assessment

■ The report evaluates the Egypt Transport and Logistics Market Revenue using various parameters, including:
By Market (Freight Forwarding, Warehousing, Value Added Services)
By Payment Method (COD and Online Payment)
By Freight Type (International Market and Domestic Market)

■ Countries Assessed
Egypt

■ EPTD & Trade Performance
The study examines the correlation of major independent factors, which are covered under the following sections:
EPTD Analysis
Pre-Covid Scenario
Overall Trade Performance
Export Statistics
Trade with UK

This breakdown summarizes the key components and focus areas of the study related to Egypt's transport and logistics market.

For more information on the research report, refer to below link:
Egypt Transportation and Logistics Market Size and Outlook to 2028-Market by Mode of Transportation (Rail,Road,Air,Sea), By Services (Freight Forwarding, Warehousing), By Payment Method (COD, Online), By Freight Type (International, Domestic)
https://www.makreo.com/report/egypt-transportation-and-logistics-market-size-to-2028

Related Reports:
Egypt Third Party Logistics (3PL) Market Size and Forecast (2023-2028)
https://www.makreo.com/report/egypt-third-party-logistics-market-size-and-forecast-2023-2028

Makreo Research and Consulting
801, Trishul Goldmine, Palm Beach, Sector 15, Belapur, Navi Mumbai, Maharashtra 400614

Contact us at:
Meetu Bhasin, Director of Research and Operations
Phone Number
+91-9619699069
Email Address
info@makreo.com

Makreo Research is a market research and consulting firm that works closely with business conglomerates worldwide to assist them in many aspects of driving their businesses.

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