{"id":71283,"date":"2023-06-06T00:00:00","date_gmt":"2023-06-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/06\/06\/coffee-with-schenker-egypts-khaled-morsy\/"},"modified":"2023-06-06T00:00:00","modified_gmt":"2023-06-06T00:00:00","slug":"coffee-with-schenker-egypts-khaled-morsy","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/06\/06\/coffee-with-schenker-egypts-khaled-morsy\/","title":{"rendered":"Coffee with: Schenker Egypt\u2019s Khaled Morsy"},"content":{"rendered":"

<\/span>How Egypt can fulfill the potential of its logistics sector + become a leader in <\/span>the EastMed, according to Schenker Egypt\u2019s Khaled Morsy: <\/span>Egypt has gone on an overhaul of its logistics sector over the past few years, from modernizing and automating its customs and import\/export procedures through <\/span>Nafeza<\/a><\/span>, to revamping its road and mobility infrastructure. It is also working on expanding its port capacity and boosting efficiency through a massive number of projects. One company that has been involved in many of these projects is <\/span>Schenker Egypt<\/a><\/span>, the local arm of DB Schenker, a leading global logistics provider with more than 150 years of experience in land transport, air and ocean freight, and contract logistics and supply chain management. <\/span><\/p>\n

Enterprise Logistics sat down with Schenker Egypt\u2019s CEO, Khaled Morsy <\/span>(<\/span>Linkedin<\/a><\/span>), to discuss the company\u2019s plans in Egypt over the next few years, as well as what Morsy thinks the country needs to work on in order for it to become an end-to-end logistics hub for the region. Edited excerpts from our conversation:<\/span><\/p>\n

T<\/span>he companies\u2019 current priorities in Egypt: <\/span>Schenker<\/span> is currently the qualifying operator partner for the <\/span>Sixth of October Dry Port<\/a><\/span> project, which <\/span>includes<\/a><\/span> a container yard, customs clearance offices and agencies, and a container freight station linked through a freight railway which links key seaports. The inland dry port can become a model for similar ports in the pipeline, Morsy told Enterprise Logistics, adding that what makes it a crucial addition to Egypt\u2019s port network is that it is a key component and central hub in the integrated ports and logistics network in Egypt, linked to seaports, railways and the new <\/span>high-speed rail network<\/a><\/span>, which DB Schenker is also operating along with Elsewedy Electric. <\/span><\/p>\n

It\u2019s also in a PPP with the Supply Ministry on strategic warehouses: <\/span>Schenker Egypt is <\/span>working on co-developing one of four of the Egyptian Supply Ministry\u2019s <\/span>strategic warehouses<\/a><\/span>, Morsy said. The public-private partnership structure is a \u201ckey prerequisite for boosting exports and accelerating FDI,\u201d Morsy said. \u201cWe believe public-private partnerships (PPPs) are essential to develop the ports and logistics infrastructure network in Egypt,\u201d Morsy said.<\/span><\/p>\n

And is working on making its operations green:<\/span> It also plans to expand its use of electric vehicles (EVs) across its fleet from 12 currently to a few hundred over the next few years, Morsy said, adding that it is working on expanding the use of solar power to cover 25% of its warehouse footprint in Egypt over the coming three years, he added. <\/span><\/p>\n

Recent infrastructure developments make Egypt attractive to investors, Morsy says: <\/span>The development work that has been done on roads and mobility over the past few years has helped drum up interest among investors, Morsy said. Ongoing expansions to ports \u2014 which will see them grow their capacity significantly over the next few years, Morsy said \u2014 is also a chief attraction to investors, he notes. These expansions place Egypt as \u201cone of the biggest, if not the biggest, in the East Med,\u201d in terms of port efficiency and capacity, he added.<\/span><\/p>\n

Another strength is Egypt\u2019s massive potential for transit trade: <\/span>Many of Egypt\u2019s ports are managed by major global logistics firms like <\/span>CMA CGM<\/a><\/span> and <\/span>Maersk<\/a><\/span>, which helps attract a lot of transit trade volumes, Morsy tells us. \u201cThis is key to boosting Egypt\u2019s FDI and exports,\u201d Morsy tells us. While Egypt has long been a stop for transit trade for carriers across its transit ports, the country is still \u201cnot an end-to-end, transit-friendly location,\u201d Morsy says, comparing it with Jebel Ali in the UAE, which is a benchmark for transit trade. <\/span><\/p>\n

SOUND SMART-<\/span> Transit trade is when a country helps facilitate the movement of goods between two different destinations.<\/span><\/p>\n

That includes the rigidity of transport networks within the country:<\/span> \u201cTransport of goods in transit within Egypt remains rigid,\u201d he said, explaining that there is currently no way to split cargo and distribute it to other countries, for example. \u201cFull end-to-end transit trade should allow seamless movement of containers between airports and ports, across the transport networks available across the country,\u201d he added. <\/span><\/p>\n

While the infrastructure developments have been crucial, they do not work alone<\/span>, Morsy said, emphasizing the need for integration between the country\u2019s different nodes and ports through streamline supply chain and trade compliance processes.<\/span><\/p>\n

Standardizing and streamlining customs procedures can help address this issue: <\/span>Customs bottlenecks are among the biggest challenges cited by importers and exporters who attempt to move goods in and out of Egypt, Morsy said. \u201cOur customs laws do not allow this to happen in a seamless way,\u201d Morsy states. \u201cThere is a need for clear legislation that makes this process straightforward and does not leave it to different agents\u2019 interpretation,\u201d he added. <\/span><\/p>\n

Investing in people is another important factor in the making of a logistics hub: <\/span>Egypt\u2019s workforce is one of its most attractive competitive advantages, Morsy said, adding that workers in this sector are \u201ccompetitive and competent.\u201d<\/span>Schenker is co-sponsoring a <\/span>Logistics Vocational School<\/a><\/span> with El Sewedy Technical Academy, which began operations in 2017, with that in mind. The program, which provides 10 classes across four cities in Egypt and is based on the German vocational training model, qualifies its students to become logistics specialists through training, Morsy said. Some 100 students have graduated and are currently working at Schenker Egypt\u2019s logistics facilities, he added.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The company is operating the country\u2019s first dry port<\/p>\n","protected":false},"author":1,"featured_media":71284,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[964],"tags":[275,696,32],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-71283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-5","tag-coffee-with","tag-spotlight","tag-trade","wpautop","entry"],"acf":{"mongo_id":"cf0f8d13-5a14-44f1-bb69-2406e77e4af3","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/6\/223.JPG","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s logistics sector has the potential of matching the GCC \u2014 here\u2019s what\u2019s missing, according to Schenker Egypt\u2019s Khaled Morsy","related_issue":[71276],"teaser":"The company is operating the country\u2019s first dry port","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/12\/.9b964a5a-09f8-4924-9ea0-b831782a1cdc.mp3"},"yoast_head":"\nCoffee with: Schenker Egypt\u2019s Khaled Morsy - 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