Egypt’s plans to up its logistical infrastructure and reel in more transit trade

How Egypt is positioning itself to become a global logistical transit hub: Egyptian ports are moving towards improved competitiveness on a global level, with increased efficiency and more streamlined procedures, as we noted in last week’s Hardhat. Port Said Port secured the 10th spot out of 348 ports worldwide in the World Bank and S&P Global’s Container Port Performance Index. The government is working on a broader strategy to develop our logistical infrastructure, including major ports across the country, according to a document Enterprise has seen.

The maritime industry and our ports are getting a major infrastructure boost, Supreme Council of Ports member Mohamed El Moselhy told Enterprise, pointing to recent projects such as the recent inauguration of the Tahya Misr multi-purpose terminal at the Alexandria Port as being one key potential window to boost traffic and throughput in our ports. Development work at the Alexandria Port — including adding more storage capacity and a multi-storey car garage could collectively add 1.5 mn TEU to our annual throughput capacity, the document indicates.

There are clear openings for the private sector to get in on the development: There are 18 commercial ports in the country, with 3k km of shorelines. The government is working on a plan to develop Egyptian ports, with 80 projects in the pipeline that are expected to cost a combined EGP 129 bn, according to the document. These projects are being implemented through partnerships with some 100 private companies, some of which have also set up their own partnerships with international consortiums.

The ultimate goal: Push our income from transit trade to surpass tourism receipts. The strategy aims to set up partnerships with major port operating and management companies and shipping lines to bring as much shipping traffic into our ports as possible, according to the document. These partnerships would also be designed to expand the operating capacity of our ports.

By the numbers: Egypt is looking to bring its container port throughput to 15 mn TEU by 2030, and to surpass 25 mn TEU by 2050, according to the document.