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Transportation and Logistics

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Transportation and Logistics

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The transportation sector is the Trojan horse of economic growth in Egypt. As transportation networks are considered the arteries which economic and social activities flow through, where all sectors of the national economy depend on the services and facilities of this sector to link both production and consumption markets together, besides having the access to the needs of raw materials and services and operating.

The Suez Canal is crucial to both global shipping and to the Egyptian economy, with the waterway representing one of the biggest revenue-generators in Egyptian trade. It connects the Red Sea to the Mediterranean and acts as the country's major source of foreign currency, which generated by oil and gas exports, tourism and remittances from Egyptians living abroad.

The Egyptian infrastructure sector is picking up, which will boost dry bulk and project cargo volumes at Egypt's ports and on its roads. About 90% of Egypt's foreign trade is shipped through ports, while the country's logistics capacity continues to expand hand-in-hand with the volume of trade.

New bridge to potentially be built between Egypt and Saudi Arabia would be a boon for the Egyptian road and rail freight sectors.

New government legislation has allowed quasi-governmental bodies, such as

Egyptian railways, to issue bonds, which will in turn result in greater investment.

China is actively investing in Egypt under the One Belt, One Road initiative.

Despite the extensive coverage of road and rail networks and significant development of port facilities, investment opportunities in Egypt abound. Some areas, such as Egypt's rail network, are in need of significant infrastructural improvement. Other subsectors, including ports and dry ports, offer investment opportunities in value-added services alongside large development projects. All facets of the sector are approaching maximum capacity, with major capacity shortfalls forecast over the coming five to ten years.