Egypt’s shipping and logistics market reaches $14.6 billion in 2024

The shipping and logistics market is expected to expand from $14.56 billion in 2024 to $18 billion by 2029.

Amr El-Samadouni, Secretary-General of the International Transportation and Logistics Services Division at the Cairo Chamber of Commerce, has urged stronger collaboration and coordination among all stakeholders in the public and private sectors to tackle challenges in international transport and logistics. According to him, crucial issues such as disruptions in the Red Sea, ships’ reluctance to enter the region, and supply chain interruptions resulting from ongoing events in Gaza, Sudan, and the Russia-Ukraine conflict are critical to the sector’s growth.

The annual growth rate is forecasted to be 4.33% through 2029.

El-Samadouni highlighted that Egypt’s shipping and logistics market, valued at an estimated $14.56 billion in 2024, is positioned for steady growth in the coming years. He stated that in 2029, the market will reach $18 billion, driven by increasing demand for efficient transportation and logistics solutions across the region. This growth trajectory will represent a compound annual growth rate (CAGR) of 4.33% over the forecast period, underscoring the sector’s resilience and significance to Egypt’s economy. The forecasted expansion is expected to stimulate investments and improvements in infrastructure, technology, and regulatory frameworks, facilitating a more interconnected and robust logistics ecosystem for Egypt and its trading partners.

El-Samadouni highlighted that port congestion, resulting from rising global trade volumes and ship and container shortages, is causing transport delays and higher costs. He stressed the need to transform seaports into smart, green logistics hubs connected to international navigation networks and to improve the efficiency of port workers globally.

He further emphasized the importance of pricing port services according to economic principles, arguing that this approach is essential for enhancing competitiveness and attracting foreign investment. By focusing on logistics, he believes Egypt can position itself as a prominent global trade and logistics hub, leveraging its strategic geographic location to facilitate international commerce.

In addition to these measures, he advocated for establishing a logistics regulatory body to oversee and standardize practices within the sector, ensuring transparency and efficiency. He also called for creating a higher logistics council to bring together key public and private stakeholders to foster collaboration, develop policies, and drive innovation in the logistics industry. This comprehensive strategy aims to enhance Egypt’s logistics capabilities, improve service quality, and ultimately contribute to the country’s economic growth.

The Secretary-General advocated for establishing a logistics performance tracking observatory. It emphasized the promotion of multimodal and integrated transport to position Egypt as a critical transit trade center, leveraging its strategic geographic location to facilitate the movement of goods between continents. He also highlighted the need for research on sustainable port infrastructure projects, which should consider future ship sizes and be conducted in collaboration with global shipping companies.

“Activating ports as integrated logistics centres, linking them to global supply chains, and ensuring local and global integration will reduce costs and improve service quality,” he elaborated. “Investment opportunities in ports and logistics fields, feasibility studies, and learning from global port experiences are crucial for supply chain resilience and economic impact.”