Executive Summary
The Egypt Transportation and Logistics Market are expected to witness tremendous growth registering a CAGR growth of 7% from 2022-28. Being a transshipment hub, Egypt has a high demand for warehouses. Due to the government's focus on the nation's logistical infrastructure, the warehousing sector in Egypt has been expanding at a rapid rate. There are numerous competitors in the market, which is fragmented. Banha Investment Zone, Ain Sokhna port, and East Port Said port are upcoming warehouse locations.
Egypt accounts for 17% of Africa's combined output expansion in 2022, an increase from 16% in 2021. The country's GDP to increase by 5.9% in 2022, which is the third consecutive year Egypt has driven regional growth. Egypt's share of global GDP was 1.1% in 2021, making Egypt 33rd out of the major economies in the world. Egypt ranks 97th in the world's richest countries if purchasing power parity is taken into account when calculating it per inhabitant. The Ministry of Communications and Information Technology (MCIT) has launched a Digital Egypt initiative in line with Egypt Vision 2030 and its digital transformation strategy. It lays the foundations for Egypt's transformation into a digital society through a comprehensive vision and plan, which will have a positive impact on Egypt's economy in the coming years.
Leveraging Geographic Positioning
Owing to its geographic location at the intersection of three continents Africa, Asia, and Europe, and the connectivity of the Suez Canal and Nile River, Egypt is a significant player in world trade. The nation has 33 ports on the Red Sea and 15 in the Mediterranean. Without including the Suez Canal, the entire transportation and storage sector1 provides around 5% of the yearly GDP. The Suez Canal, the fastest shipping route between Europe and Asia, is currently used by 13% of ships and 20% of container vessels globally.
As one of the key trading nations, Egypt's economy and logistics sector are evolving, which offers a variety of probabilities for logistics service providers. The World Bank reports that Egypt has had a significant increase in the logistics performance index (LPI), which rose 13 ranks in 2016 from 62nd place in 2014. Due to the commendable changes in the Egyptian logistics industry, several businesses intend to relocate or expand their production lines there.
The government also wants to transform the nation into a hub for manufacturing and distribution that serves Europe, the Middle East, and Africa. As part of Egypt Vision 2030, economic growth is identified as a key component, which involves the improvement of the nation's transportation system. Project and contract logistics should become more popular as businesses and building projects penetrate more markets.
Egypt has significant economic links through its ports as a result of its advantageous geographic location and close proximity to Europe, the Middle East, and Asia. For instance, 8% to 10% of the world's cargo travels via the Suez Canal, which generates a significant demand for logistics services as well as for operations such as warehousing and storage. The Egyptian government has been working on projects to turn the nation into a hub for global logistics and is promoting foreign investment in a number of industries. The majority of freight in the logistics industry in Egypt is transported via highways, which has prompted the government to concentrate on maintaining road infrastructure.
Government Initiatives
The government's proposed transportation infrastructure initiatives are anticipated to have a positive impact on the logistics industry. Compared to its neighbors, Egypt's logistics and transport infrastructure are in a respectable state of repair. The majority of the transportation routes are focused in Cairo and reflect Nile Valley settlement patterns. Inland water links and a reasonably excellent rail network provide a significant amount of assistance for the transportation network. Egypt's ports have a special significance in the maritime shipping industry because of their geographic location.
COVID-19 Impact
The COVID-19 outbreak has taken a direct and sudden toll on Egypt's maritime shipping, Suez Canal, and air freight sectors due to their reliance on international trade flows. Nearly 90% of Egypt's international trade passes through Egypt's 48 ports. Due to the reduced volumes of incoming cargo, the country's inland transportation system has been under pressure.
Market Performance
Road freight accounts for the major market share followed by Marine freight, Airfreight, and Rail freight. Egypt's prime location in the North African region provides transportation and logistics companies with unmatched access to a growing regional clientele across Europe, the Middle East, and Africa, offering the fastest turnaround times for freight and the quickest transit periods between seaport, airport, and industrial zones. Moreover, the geographical location of Egypt’s ports lends importance to the maritime shipping sector.
Cash on Delivery (COD) continues to be the most preferred means of payment accepted by merchants in the nation, owing to low customer confidence in online transactions and low card penetration Egyptian customers prefer COD's value and simplicity because there are no additional fees.
Scope of the Study
The following synopsis is based on the report titled "Egypt Transportation and Logistics Market Performance and Outlook to 2028 " published by Makreo Research and Consulting.
The report delves deeply into various parameters such as Market size, segmentation value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalize on untapped business potential in the specific geography.
Egypt Transportation and Logistics Market Segmentation
The report helps the reader to gain information on the following areas:
Table of Content
Report Synopsis
Industry Overview
The objective of the Study
Research Process
Data Collection Methods
Analytical Framework
Egypt Economy: EPTD Analysis
EPTD Analysis: Egypt's Economy Performance
EPTD Analysis: Political Overview
EPTD Analysis: Technological Overview
Analysis: Demographic Overview
Egypt Trade Performance: Pre-COVID-19 Scenario
Egypt Trade Performance
Egypt Top Trading Partners
Egypt Exports & Imports – Key Facts by Commodity
Egypt Trade Facts with UK
Egypt Logistics Infrastructure Overview
Egypt Logistics Infrastructure – Road Transport
Egypt Logistics Infrastructure – Rail Transport
Egypt Logistics Infrastructure – Marine Transport
Egypt Logistics Infrastructure – Air Transport
Key Industry Highlights
Belt and Road Index
Egypt Transport Statistics – Marine
Egypt Transport Statistics – Rail
Egypt Transport and Logistics Market – Key Facts
Egypt Logistics Market Performance
Impact of COVID-19 On Egypt Logistics Market
Impact of Russia-Ukraine War On Egypt Logistics Market
Egypt Transportation and Logistics Share to GDP
Egypt Transport and Logistics Market – Past and Present Performance
Egypt Transportation and Logistics Market Structure
Egypt Transport and Logistics Market: By Mode of Transport
Impact of COVID-19 on Marine Transport
Egypt Freight Forwarding Market By Mode of Transport - Roadways
Egypt Freight Forwarding Market By Mode of Transport - Marine
Suez Canal Container Shipments
Egypt Freight Forwarding Market By Mode of Transport – Rail Transport
Egypt Freight Forwarding Market by Mode of Transport– Air Transport
Egypt Transport and Logistics Market: by Services
Egypt Transport and Logistics Market: by Payment Method
Egypt Transport and Logistics Market: by Freight Type
Egypt Transport and Logistics Market: by Industry
Egypt Transport and Logistics Market – Future Outlook
Factors Driving Future Growth of the Egypt Transport and Logistics Market
Analyst Recommendations
Limitations of the Study
List of Figures & Tables
Egypt GDP Growth (annual %), 2015-2022
Egypt's Main Economic Indicators
Political Framework Parameters – Latest
Egypt Population 2015-2021
Household and NPISHs Final Consumption Expenditure, 2015-2020
Egypt Household Expenditure, 2021
Top 10 Export Goods, 2019
Top 10 Import Goods, 2019
Top 10 Exporting Countries, 2019
Top 10 Importing Countries, 2019
Top Goods Exported to The World by Egypt in 2021
Top Goods Imported from The World by Egypt in 2021:
Market Share of Top Goods Exported by Egypt, 2021
Market Share of Top Goods Imported by Egypt, 2021
Top 5 Goods Exported from the UK to Egypt by Value, Q3 2021- Q2 2022
Top 5 Goods Imported to the UK From Egypt by Value, Q3 2021-Q2 2022
Market Share of Top 5 Goods Exported from The UK To Egypt, Q3 2021- Q2 2022 2022
Market Share of Top 5 Goods Imported To The UK From Egypt, Q3 2021- Q2 2022
Egypt Commercial Ports Structure
Throughput at Egypt’s Top Three Ports, 2018-2022F
Alexandria Port Key Facts, 2019
Suez Canal Throughput, 2018-2022F
Egypt Ranking in Air Connectivity Index, 2019
Egypt Ranking of the belt and road index (BARI) among MENA Countries, 2019
Egypt Transportation and Logistics Share to GDP (%)
Egypt Transportation and Logistics Share to Country’s GDP, 2021-2026F
Egypt Transportation and Logistics Share to World’s GDP, 2021-2026F
Egypt Transport and Logistics Market Revenue, 2018-2021
Egypt Mode of Transportation Contribution in Domestic Freight Movement, 2021(%)
Mode of International Transportation Contribution in Freight, 2021 (%)
Egypt / Number of road motor vehicles in use (for freight and passengers)-lorries and pick up / Number, 2015-2018
Egypt Number of Freight Wagons, 2015-2017
Egypt Maritime Cargo Throughput Volume, 2017-2021
Major Ports of Egypt
Egypt Suez Canal Revenue, 2018-2021
No Of Vessels, Yearly, 2015-2019
Yearly Cargo (in tons), 2015-2019
Net Ton, Yearly, 2015-2019
Egypt Rail Transport Cargo Volume (Monthly), Oct 21-Sep 22
Egypt Air Freight Volume (MoM), Apr 2021 – Apr 2022
Egypt Air Transport Freight Volume, 2017-2020
International Civil Aviation Organization, Civil Aviation Statistics of the World, and ICAO staff
Egypt Transportation and Logistics Market Segmentation by Market, 2021 (%)
Egypt Transportation and Logistics Market Segmentation by Payment of Method, 2021 (%)
Egypt Transportation and Logistics Market Segmentation by Freight Type, 2021 (%)
Egypt Transportation and Logistics Market Segmentation by Industry (International Market), 2021 (%)
Egypt Transport and Logistics Market Revenue Forecast, 2022F-2028F
FDI Net Inflow as % of GDP, 2015-2020
Real GDP Growth of Egypt, Oct 2019 – Jul 2022
Inflation, Consumer Prices (Annual %) – Egypt, 2015-2021
Gross Value Added at Basic Price of Egypt, 2015-2021
GDP From Transportation in Egypt, Q1 2020 – Q2 2021
Individuals Using the Internet (% of Population) in Egypt, 2015-2020
Egypt Logistics Performance Index, 2012-2018
Cross-border Trade Index, 2020
Egypt Logistics Cost, 2018-2020
Ranking in the Liner Shipping Connectivity Index, 2019