{"id":90582,"date":"2025-11-26T00:00:00","date_gmt":"2025-11-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/11\/26\/egypt-is-running-a-bonded-warehouse-pilot-test-it-could-help-crank-up-demand-for-re-export-services\/"},"modified":"2025-11-26T00:00:00","modified_gmt":"2025-11-26T00:00:00","slug":"egypt-is-running-a-bonded-warehouse-pilot-test-it-could-help-crank-up-demand-for-re-export-services","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/11\/26\/egypt-is-running-a-bonded-warehouse-pilot-test-it-could-help-crank-up-demand-for-re-export-services\/","title":{"rendered":"Egypt is running a bonded warehouse pilot test \u2014 it could help crank up demand for re-export services"},"content":{"rendered":"

Egypt is testing a fresh model for bonded zones: <\/strong>Earlier this month, we heard that Transcargo International (TCI) will set up Egypt\u2019s first customs-licensed, port-based distribution center in the Suez Canal Economic Zone\u2019s (SCZone) Adabiya Port. EnterpriseAM sat down with our friend Mohamed Mahgoub, Deputy CEO of TCI and sister company Transmar, to discuss how the new facility stands out from other existing privately managed bonded warehouses in Egypt, and what Egypt stands to gain if the model picks up pace. <\/p>\n

The new facility is fundamentally different from traditional bonded <\/strong>warehouses, which normally serve importers inside Egypt<\/strong>, Mahgoub explained. \u201cInstead, our new zone acts as a distribution center for foreign exporters, removing the need for them to set up shop in Egypt, with Transcargo serving as the custodian of their goods within the country,\u201d Mahgoub explained.<\/p>\n

SOUND SMART-<\/strong> A bonded warehouse<\/a> refers to a government-authorized storage facility, where imported goods are held without facing customs duties until they are ready for distribution or export. This allows for the deferral of import taxes and duties on the stored goods, offering businesses the flexibility to manage inventory in a strategic and cost-efficient manner. <\/p>\n

Who is the client? Mahgoub did not tell us. <\/strong>\u201cThe project was specifically designed for one of our biggest foreign clients\u2026and has been in the works for the last two years.\u201d<\/p>\n

How does this work? <\/strong>Under the terms of the new development, Transcargo will manage the designated warehouse, acting as a custodian that receives the products and ensures their integrity during transit time in storage, all the while the product remains under the ownership of the client. Transcargo is also responsible for all related customs procedures in Egypt, such as issuing the needed declarations for the Advance Cargo Information system.<\/p>\n

The model is especially well-suited for clients with extensive global operations.<\/strong> \u201cThe client did not want to go through the process of setting up a company in Egypt, as it would be a drain on its resources to do so in the large variety of countries it trades with,\u201d Mahgoub said. It also allows foreign companies to set up a base in Egypt by proxy, without the need for a consignee name or dedicating the cargo to a specific entity, Mahgoub said. <\/p>\n

If this new concept of bonded warehouses picks up pace, re-exports from Egypt could go <\/strong>up as much as 20%<\/strong>, Transcargo believes. At present, the zone is still in a trial period. \u201cWe collaborated with the Finance Ministry and Customs Authority on the project,\u201d Mahgoub explained. \u201cBoth departments were very helpful and accepted the idea of having a trial, starting with our facility, ensuring the process went forward without snags.\u201d <\/p>\n

\u201cWe are already working on the expansion of this model<\/strong>,\u201d remaining confident in its promise, Mahgoub told us. The firm is now looking into options for expansion on the Red Sea, as well as the Mediterranean.<\/p>\n

REMEMBER- Egypt\u2019s local warehousing market is forecast <\/strong>to grow<\/a><\/strong> at 7% y-o-y over the <\/strong>next five years<\/strong> amid rising demand driven by new industrial zones and expanding e-commerce operations. On a larger scale, the global bonded warehouse market is forecast to grow at a compound annual growth rate of 8%, projected to hit a valuation of USD 50 bn by 2028. The market\u2019s rapid growth is being driven by expanding e-commerce and manufacturing sectors and rising complexity within global supply chains.<\/p>\n

One reason Transcargo\u2019s client chose Egypt is its strategic location.<\/strong> The new facility looks to act as a bridge between its clients and their markets. \u201cShipping a cargo from the UAE to the Mediterranean could take up to 50 days, versus shipping cargo from Egypt to, let's say, Turkey in one to two days,\u201d Mahgoub said.<\/p>\n

Growing global trade instability is expected to bolster the demand for bonded zones in <\/strong>Egypt beyond GCC players. <\/strong>Major global trade players \u2014 including India and China \u2014 are looking to shorten their time-to-market due to the fluctuation of prices and the turbulent global trade environment. More North American players are also eyeing the GCC, which is set to increase the demand for bonded zones across Mediterranean ports. This marks an opening that could allow Egypt to act as a pillar for intercontinental trade, expanding its role beyond the region to service the broader flow of East-West trade.<\/p>\n","protected":false},"excerpt":{"rendered":"

If this new concept picks up pace, re-exports from Egypt could go up as much as 20%<\/p>\n","protected":false},"author":1,"featured_media":90583,"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":[459],"tags":[49,696,207,272],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-90582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spotlight","tag-egypt","tag-spotlight","tag-storage-warehouses","tag-transmar","wpautop","entry"],"acf":{"mongo_id":"0f4a0c20-8145-4436-989f-b28a041fe9f7","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/11\/2006.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt 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