{"id":633595,"date":"2024-07-17T00:00:00","date_gmt":"2024-07-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/a-deep-dive-into-the-new-cabinets-new-transport-and-logistics-infrastructure-strategy\/"},"modified":"2024-07-17T00:00:00","modified_gmt":"2024-07-17T00:00:00","slug":"a-deep-dive-into-the-new-cabinets-new-transport-and-logistics-infrastructure-strategy","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/a-deep-dive-into-the-new-cabinets-new-transport-and-logistics-infrastructure-strategy\/","title":{"rendered":"A deep dive into the new cabinet\u2019s new transport and logistics infrastructure strategy"},"content":{"rendered":"

What does the new cabinet have lined up for the transport and logistics sectors? <\/strong>The new Madbouly cabinet has big plans for the country\u2019s 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.<\/p>\n

** We already dove into the <\/strong>economic<\/a><\/strong> and <\/strong>green<\/a><\/strong>aspects of the new cabinet\u2019s plan. <\/strong><\/p>\n

\n

PORTS- <\/p>\n

Suez Canal transits and revenues are lined up for increases:<\/strong> 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.<\/p>\n

We are assuming a best case scenario:<\/strong> 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<\/a> yesterday.<\/p>\n

A boost for SCZone ports: <\/strong>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\u2019s 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. <\/p>\n

And right next door to the ports:<\/strong> 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. <\/p>\n

And to carry (some) of Egypt\u2019s trade:<\/strong> 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.<\/p>\n

Other maritime logistics and dry port targets highlighted in the report:<\/strong><\/p>\n