Egypt’s shipping and logistics market has reached a valuation of $14.6 billion in 2024, with projections to grow to $18 billion by 2029. This growth represents a compound annual growth rate of 4.33% over the forecast period. A prominent industry leader has emphasized the need for increased cooperation among public and private sector stakeholders to tackle challenges facing the industry. These challenges include disruptions in the Red Sea, ship reluctance to enter the region, and supply chain interruptions caused by ongoing conflicts in Gaza, Sudan, and the Russia-Ukraine war.
Port congestion due to rising global trade volumes, shortages of ships and containers, and supply chain disruptions have led to delays and higher transportation costs. Transforming seaports into smart, green logistics hubs, integrating them with international navigation networks, and enhancing the efficiency of port workers globally have been highlighted as critical needs. It is also necessary to price port services based on economic principles, focusing on logistics to position Egypt as a global trade and logistics hub. Establishing a logistics regulatory body and a higher logistics council are key steps in this direction. Tracking logistics performance through an observatory and promoting multimodal and integrated transport systems are essential to make Egypt a central hub for transit trade. Research on sustainable port infrastructure projects, considering future ship sizes, in collaboration with global shipping companies, is also crucial.
“Activating ports as integrated logistics centers, linking them to global supply chains, and ensuring both local and international integration will reduce costs and improve service quality,” a leading figure in the industry stated. Investment opportunities in ports and logistics, feasibility studies, and learning from global port experiences are essential to enhance supply chain resilience and economic impact. In conclusion, the rapid activation of ports as integrated logistics centers to improve services related to ships and cargo movement is essential for fostering improvements in the global supply chain.
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