A new terminal in Sokhna?

Sky Ports to set up a new terminal in Sokhna: The Suez Canal Economic Zone inked a MoU and licensing agreement with Sky Ports to develop and operate a multi-purpose terminal in Ain Sokhna Port, according to a statement. The investment figure for the new terminal or project timeline was not disclosed.

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The breakdown: Under the MoU, the Sky Investments Holding subsidiary will conduct the required studies for the establishment, operation, and maintenance of the terminal. The two parties also inked a usufruct agreement to develop a berth and logistics area at the port over a period of 18 months — to follow the completion of the project’s technical study.

On the cards: The new terminal will include a 588-meter-long quay for receiving vessels and a 250k-sqm logistics yard to support cargo operations. In addition to this, the terminal will feature some 100k-sqm of warehouses within the Sokhna Industrial Zone. The hub is set to be directly linked to an integrated customs yard at the port in a bid to ease the flow of goods.

PLUS- The terminal is slated to handle some 2 mn tons per annum in its first phase of operations — serving key shipping and trade routes between the GCC, East Africa, and Asia.

IN OTHER LOGISTICS NEWS-

Shipping giants brace for tough 4Q: Global shipping companies are bracing for weaker-than-expected 4Q earnings, with global majors now lowering their forecast for the year-end. The headwinds appear to come on the heels of concerns of cooling demand and freight rates, coupled with an expected uptick in supply as new ships enter service and boost available capacity.

This could be bad news for Egypt, as weaker 4Q earnings might mean a slow return to the Suez Canal. With spot rates for containers falling more than 50% this year, shipping lines are incentivized to maintain their current voyages around the Cape of Good Hope over fears that a return to the shorter Red Sea route “would flood the market with capacity and cause freight rates to plunge even lower,” freight analytics firm Xeneta’s chief analyst Peter Sand told Bloomberg.

In perspective: A return to the Red Sea route would loosen up some 6% to 7% of the world’s shipping capacity at some 2 mn TEUs that are otherwise tied up due to the long distance of the Cape of Good Hope route.

We have been expecting Suez Canal transit to pick up in early 2026 — driven by the easing of regional tensions and a positive regional growth forecast from the IMF.