Egypt Transportation and Logistics Market Size and Outlook to 2028

Egypt Transportation and Logistics Market Size and Outlook to 2028

Executive Summary
The Egypt Transportation and Logistics Market is expected to witness tremendous growth registering a CAGR growth of 7% from 2022-28. Being a transshipment hub, Egypt has a high demand for warehouses. Due to the government's focus on the nation's logistical infrastructure, the warehousing sector in Egypt has been expanding at a rapid rate. There are numerous competitors in the market, which is fragmented. Banha Investment Zone, Ain Sokhna port, and East Port Said port are upcoming warehouse locations.
Egypt accounts for 17% of Africa's combined output expansion in 2022, an increase from 16% in 2021. The country's GDP to increase by 5.9% in 2022, which is the third consecutive year Egypt has driven regional growth. Egypt's share of global GDP was 1.1% in 2021, making Egypt 33rd out of the major economies in the world. Egypt ranks 97th in the world's richest countries if purchasing power parity is taken into account when calculating it per inhabitant. The Ministry of Communications and Information Technology (MCIT) has launched a Digital Egypt initiative in line with Egypt Vision 2030 and its digital transformation strategy. It lays the foundations for Egypt's transformation into a digital society through a comprehensive vision and plan, which will have a positive impact over Egypt economy in coming years.

Leveraging Geographic Positioning
Owing to its geographic location at the intersection of three continents Africa, Asia, and Europe and the connectivity of the Suez Canal and Nile River, Egypt is a significant player in world trade. The nation has 33 ports on the Red Sea and 15 in the Mediterranean. Without include the Suez Canal, the entire transportation and storage sector1 provides around 5% of the yearly GDP. The Suez Canal, the fastest shipping route between Europe and Asia, is currently used by 13% of ships and 20% of container vessels globally.
As one of the key trading nations, Egypt's economy and logistics sector are evolving, which offers a variety of probabilities for logistics service providers. The World Bank reports that Egypt has had a significant increase in the logistics performance index (LPI), which rose 13 ranks in 2016 from 62nd place in 2014. Due to the commendable changes in the Egyptian logistics industry, several businesses intend to relocate or expand their production lines there.
The government also wants to transform the nation into a hub for manufacturing and distribution that serves Europe, the Middle East, and Africa. As part of Egypt Vision 2030, economic growth is identified as a key component, which involves the improvement of the nation's transportation system. Project and contract logistics should become more popular as businesses and building projects penetrate more markets.
Egypt has significant economic links through its ports as a result of its advantageous geographic location and close proximity to Europe, the Middle East, and Asia. For instance, 8% to 10% of the world's cargo travels via the Suez Canal, which generates a significant demand for logistics services as well as for operations such as warehousing and storage. The Egyptian government has been working on projects to turn the nation into a hub for global logistics and is promoting foreign investment in a number of industries. The majority of freight in the logistics industry in Egypt is transported via highways, which has prompted the government to concentrate on maintaining road infrastructure.

Government Initiatives
The government's proposed transportation infrastructure initiatives are anticipated to have a positive impact on the logistics industry. Compared to its neighbours, Egypt's logistics and transport infrastructure is in a respectable state of repair. The majority of the transportation routes are focused in Cairo and reflect Nile Valley settlement patterns. Inland water links and a reasonably excellent rail network provide a significant amount of assistance for the transportation network. Egypt's ports have a special significance in the maritime shipping industry because of their geographic location.

COVID-19 Impact
The COVID-19 outbreak has taken a direct and sudden toll on Egypt's maritime shipping, Suez Canal, and air freight sectors due to their reliance on international trade flows. Nearly 90% of Egypt's international trade passes through Egypt's 48 ports. Due to the reduced volumes of incoming cargo, the country's inland transportation system has been under pressure.

Market Performance
Road freight accounts for the major market share followed by Marine freight, Airfreight, and Rail freight. Egypt's prime location in the North African region provides transportation and logistics companies with unmatched access to a growing regional clientele across the Europe, Middle East and Africa, offering the fastest turnaround times for freight and the quickest transit periods between seaport, airport, and industrial zones. Moreover, the geographical location of Egypt’s ports lends it an importance in the maritime shipping sector.
Cash on Delivery (COD) continues to be the most preferred means of payment accepted by merchants in the nation, owing low customer confidence in online transactions and low card penetration Egyptian customers prefer COD's value and simplicity because there are no additional fees.

Scope of the Study
The following synopsis is based on the report titled Egypt Transportation and Logistics Market Performance and Outlook to 2028 published by Makreo Research and Consulting.
The report delves deeply into various parameters such as Market size, segmentation value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

Egypt Transportation and Logistics Market Segmentation
Egypt Transportation and Logistics Market
By Market
Freight Forwarding
Warehousing
Value Added Services (VAS)
By Payment Method
Cash On Delivery
Online Payment
By Freight Type
International
Domestic

The report helps reader to gain information on following areas:
How did Egypt's logistics sector adapt to the 2020 economic slowdown?
What effects did the economic collapse have on Egypt and how did the Egyptian economy perform in the past?
What is the current state of the Egyptian logistics industry and how has it performed in the past?
How is the transportation method split in the Egyptian logistics market?
Which industry accounts for the bulk of demand for Egypt's logistics sector?
What are the main issues facing the sector right now?
How is the market for Egyptian logistics service providers developing?
What are the current financial standings of the major firms in the Egyptian logistics sector?
What kind of transportation dominates the Egyptian logistics sector?
What sectors are accounting for major contribution in the country’s logistics demand?