What does the new cabinet have lined up for the transport and logistics sectors? The new Madbouly cabinet has big plans for the country’s ports, airports, and railways to be carried out over the coming three years as laid out in the 276-page document that details its plans for the years to come.

** We already dove into the economic and greenaspects of the new cabinet’s plan.

PORTS-

Suez Canal transits and revenues are lined up for increases: The government sees a hike to Suez Canal transits from 13.7k vessels this calendar year to 23k next year, and finally ramping up to 26k by 2026 at which transit numbers are projected to remain into 2030. Meanwhile, canal revenues are forecasted to more than double from USD 4.2 bn in 2024, to USD 9 bn next year. Suez Canal income is then expected to rise sequentially, hitting USD 12.2 bn by 2030.

We are assuming a best case scenario: Suez Canal revenues continue to take hits from disruptions on the back of Houthi-led attacks in the Red Sea, falling some 23% y-o-y during FY 2023-2024 to USD 7.2 bn, SCA boss Osama Rabie told Al Arabiya yesterday.

A boost for SCZone ports: The new cabinet intends to sequentially increase capacity at Suez Canal Zone ports via improvements to port infrastructure. East Port Said Port is set to see its present capacity of some 3.8 mn export and import containers increased to 4.8 mn containers by the end of the current fiscal year, and reaching a target of 5.3 mn containers by 2030. The port’s capacity for transit containers is also lined up to top 5 mn by 2030. Ain Sokhna Port is slated to see its total capacity of export, import, and transit containers more than doubled from some 900k TEUs at present, to 2.5 mn TEUs in 2030.

And right next door to the ports: The government is looking to continue developing logistics zones adjacent to ports to mediate transport between production hubs and export and import terminals. Alexandria is also scheduled to see a new multipurpose terminal and logistics zone at its port, with integrations to the International Coastal Road.

And to carry (some) of Egypt’s trade: The new cabinet has also outlined plans to boost the national shipping fleet to 31 vessels by FY 26-27, increasing its capacity to some 20 mn tons of various cargo a year. Also on the cards is the establishment of a shipping line linking Egypt to Latin America and to a logistics zone at a Brazilian port.

Other maritime logistics and dry port targets highlighted in the report:

  • The establishment of 31 new dry ports and logistics zones;
  • The development of seven logistics corridors, connecting industrial, agricultural, service, and mining hubs with the country’s ports;
  • Upgrades to ports with added berths of depths between 18 and 22 meters, while extending total berth lengths at national ports to some 100 km;
  • More partnerships with the world’s largest shipping lines, and container terminal operators;
  • More digitalization at the country’s ports.

Supply chains are also set to get a boost via the establishment of logistics zones for strategic goods, the development of futures contracts to hedge against price fluctuations, incentives for electronic B2B commodity trades, as well as promoting the local commodities exchange’s role in price clearing. Also on the agenda are improvements to the e-portal for commodity prices and the launch of a digital portal connecting grain, poultry, and meat importers with buyers.

AIRPORTS-

The cabinet has outlined boosts to capacity at national airports and national carrier Egypt Air, the report explained. Airport capacity is slated to increase to 72.2 mn passengers by FY 26-27, cranking up to 109.2 mn passengers a year by 2030. Egypt Air’s cargo fleet is slated to see a boost from 4 to 6 freighter aircraft by the end of the current fiscal year, and remain stable until 2030. The national carrier’s passenger fleet on the other hand is set to almost double, from 65 aircraft in the current fiscal year to 97 in FY 26-27 and reaching 125 by 2030. The added passenger aircraft are also expected to increase cargo capacity via belly cargo holds.

Other aviation goals outlined in the report:

  • Providing international players with concessions to manage and operate national airports in a move to boost revenues;
  • Structural reforms to Egypt Air and its subsidiaries;
  • Reeling in FDI in the airport sector;
  • Promoting the development of the budget air travel sector;
  • Improvements to weather monitoring and early warning systems, as well as more digitalization.

ROADS, BRIDGES, AND RAILWAYS-

The government is looking to continue expansions in road infrastructure, outlining plans to add some 7k km in new roads while upgrading and boosting the capacity of another 10k km, in a bid to ease congestion, boost road freight volumes, improve connectivity with peripheral regions and agricultural hubs, and save state coffers some USD 8 bn in fuel wasted due to gridlocks. Highways and bridges will also be spotlighted, with plans for 35 new Nile axes as well as 1k new bridges and tunnels.

The new cabinet is looking to boost railway capacity to 2 mn passengers a day by 2030, up from some 1.5 mn passengers a day this year, while also hiking freight capacity from 8 mn tons a year to 13 mn tons a year during the same period. In order to implement these changes, the government sees itself overhauling the national inventory of rolling stock through the import of 210 railway locomotives and refurbishment of another 222, as well as the deployment of seven new sleeper trains and refurbishment of 121 sleeper cars, in additional to the deployment of 1,215 cargo cars.

Also on the cards for railways:

  • Upgrades to railway infrastructure, including stations. e-booking, and payments,
  • Improvements to signaling along some 1.8k km of tracks,
  • New railway lines and upgrades to capacity along existing rail routes,
  • The addition of 33 new maintenance workshops,

And there’s something there about metros and electric trains: The government sees itself continuing efforts to establish the 2k km high-speed electric railway, a 111 km light rail transit network, in addition to the Cairo metro’s fourth line and the Alexandria metro and the rehabilitation of Alexandria Raml tram.

Your top infrastructure stories for the week:

  • Big development plans ahead: The government’s Urban Development Fund plans to invest some EGP 20 bn on the Darah Provincial Capitals Development Project and another EGP 4.2 bn to develop historic Cairo this year, Fund head Khaled Siddiq told Asharq Business.
  • Construction firm EDECS has laid the foundation stone for the new container terminal at the Ain Sokhna Port, expected to be completed and fully operational within 18 months.
  • China’s Zhejiang Hengsheng Dyeing and Finishing Company has laid thefoundation stone for its dyeing, processing, and textile manufacturing project in the Suez Canal Economic Zone’s West Qantara Industrial Zone.
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