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.

A rundown of the long-term strategic partnerships that will help us reach our targets: The Madbouly government signed in March two agreements worth USD 1.6 bn with two Hutchison Ports-led consortiums to develop new container terminals at Ain Sokhna and Dekheila ports, with the companies set to operate and maintain the terminals for 30 years. These two development projects will increase the terminals’ capacity by a combined 4 mn TEUs. AP Moller-Maersk is also working on a USD 500 mn expansion of East Port Said port that is expected to raise its capacity by 40% to 7.4 mn TEU. Hapag-Lloyd is part of another consortium that signed an agreement last year to invest another USD 500 mn to build a new container terminal at Damietta Port.

The shipping line operators that Egypt has already set up partnerships with or is looking to sign agreements with account for a combined 70% of the global container ship fleet, which operate some 25% of global shipping traffic around the world, the document says. These partnerships have netted us some USD 3 bn in foreign direct investment, the document says, without specifying the timeline of these investments coming in.

There’s also work underway to focus on other infrastructural components of our maritime industry, with plans to increase the depth of our waterways by doing further dredging work to improve ships’ maneuverability while passing through, according to the document. More dredging work on the Suez Canal was a primary focal point after the 400-meter-long Ever Given spent six days lodged in the canal back in 2021, causing major disruptions to the waterway and global trade, we noted in a previous edition of Hardhat.

Port development to serve industry: Part of the priority areas of the logistical infrastructure plan is improving the transport network and routes between ports and industrial cities to ensure faster and easier movement of raw materials, goods, and labor. This entails developing river transport routes, road infrastructure, and the country’s railway network. This development process is meant to help Egypt become more integrated in the global logistics network and supply chains, by creating a more robust trade and transport network infrastructure, the document says.

We need to push digitization in the logistics space: The logistics sector is one that’s ripe for digitization, and that digitization push would be a boon for Egypt’s goals of assuming a pole position in the global logistics network, Secretary-General of the Chamber of International Transport and Logistics Amr El Samadony told Enterprise. Our logistics sector needs to be outfitted with new technology to help improve efficiency and contribute to bringing in more traffic through our ports, he said.

Your top infrastructure stories for the week:

  • Masdar-led consortium secures land for mega wind farm: UAE’s Masdar, Infinity Power, and Hassan Allam Utilities signed a land allocation agreement with the government for a 10-GW wind farm in Sohag. The USD 10 bn wind farm is set to be one of the largest in the world.
  • Elsewedy eyes Southern Africa interconnector: Elsewedy Electric is keen to help construct the electrical interconnection projectbetween Zimbabwe, Zambia, Botswana, and Namibia, Prime Minister Moustafa Madbouly told the vice president of Zimbabwe in a meeting last week.
  • Arab Contractors is heading to Angola: Arab Contractors will build four road and infrastructure projects in Angola after signing a partnership agreement with one of the country’s largest companies.
  • New projects at the SCZone: The board of the Suez Canal Economic Zone (SCZone) approved several new projects in a meeting on Thursday.
  • Gouna expansion: Orascom Development Holding plans to invest USD 100 mn to expand its El Gouna resort.
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