Egypt stands out internationally for  its geostrategic position and the quality of its logistics infrastructure

The Transportation and logistics sector has numerous Comparative and Competitive Advantages, the most significant of which are as follows:

• Egypt occupies a unique location at the crossroads between Asia, Europe, and Africa. Additionally, The Suez Canal is the world’s most vital maritime waterway, as 12% of the global trade and 24.5% of the global container trade transit Suez Canal.
• Egypt enjoys preferential access to Europe, Arab countries, and Sub-Saharan Africa through agreements such as the Egypt-EU Partnership, the Greater Arab Free Trade Area (GAFTA), the Common Market for Eastern and Southern Africa (COMESA), and the African Continental Free Trade Area (ACFTA).
• Amendment of legislations and setting regulations to ensure the freedom of competitiveness in providing transportation services. 
• Achieving Sustainable Development Goals (SDGs) and using clean energy through modernizing the railways system, implementing the electric high-speed rail (HSR) network, the fourth metro line, monorail project, and the Alexandria Metro.

The Egyptian government has adopted a comprehensive plan to develop the transportation and logistics sector, encompassing the following seven pivots:

1. Develop and double Suez Canal waterway.
2. Contribute to the Development of special economic and industrial zones (such as the Suez Canal Economic Zone, which includes industrial zones in Ain Sokhna, Qantara West, East Ismailia, and East Port Said).
3. Plan and establish seven integrated international logistics corridors to connect the development zones (industrial, agricultural, mining, and services) to seaports through rapid and safe transportation means, passing through dry ports and logistics zones.
4. Develop the maritime transportation industry, which involves upgrading seaports, developing the commercial fleet, and amending the legislations governing this sector
5. Develop a plan to construct several dry ports and logistics zones across the country.
6. Upgrade the networks linking seaports, dry ports, and logistics zones (railways and roads).
7. Establish connections with neighboring countries (via land, rails, sea, and river transportation).
   
   

The government has adopted an integrated plan to transform Egypt into a global logistics and trade hub, taking advantage of its strategic location on the Red Sea and the Mediterranean, as well as its pivotal role in connecting global supply chains. The government’s program, launched in July 2024, targets the implementation of several measures, the most crucial of which are the following:

• Accomplishing the government`s plans to establish integrated international logistics centers near seaports, to facilitate global freight transport, connect production sites to ports via rapid and safe means of transportation, increase the capacity of major ports, improve maritime operations, and continue upgrading the existing infrastructure.
• Establishing a supreme council for logistics and a regulatory authority for logistics services.
• Completing the implementation plan for constructing 31 Dry Ports and logistics zones across the country.
• Increasing the Egyptian maritime fleet to 31 vessels by 2026/2027 and upgrading the fleet to handle 20 million tons of diverse cargo annually.
• Improving connectivity between ports and global shipping lines through digitization, linking local, regional and global networks, and reducing vessel turnaround time at ports by implementing one- stop-shop systems.

Special Incentives:

• Pursuant to Article (11) of Investment Law No. 72 of 2017, projects established after this Law coming into force, in accordance with the investment map, are granted either a 50% or 30% deduction of the investment cost from the taxable net profits. Such incentives are applied based on the geographic distribution of economic activities, in line with the state's objective to encourage investment in specific economic sectors and develop certain geographic areas within the country.

As per Prime Minister Decree no. 104 of 2022, special incentives granted to Transportation sector as well as supporting Transportation and logistics.

• Land and dry ports and logistics centers (The foregoing is subject to the terms and conditions set by the General Authority for Land and Dry Ports).
• Designing, construction, management, operation, utilization, or maintenance of railway lines.
• Construction, management, utilization, and maintenance of freeways, highways, main roads and tunnels.
• Mass transportation to and from new cities and urban communities, subject to the following regulations.
• Refrigerated Transportation.
• River transport

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