Transport and Logistics

Essential to every country’s economy is a successful transport and logistics sector, one which will allow commercial activity to flow unhindered from production to consumption. A successful transportation system also facilitates access to raw materials, services and operating, all of which are essential for the success of any viable business venture. Egypt’s unique geographic location combined with an expanding infrastructure base is enhancing the country’s position as a key global logistics hub for companies looking to do business in, or trade between, Europe, Asia and Africa.

To create a solid foundation for the multitude of projects which are set to take place over the next decade, the government has created a 2030 plan which focuses on the transport sector, with the aims of making it an integrated, well developed system that satisfies national and global developmental needs.

Much of the plan is already underway, and you can read about the various projects completed in 2018 earlier in this book. Below you will find an overview of the sub-sectors which we believe will be will be important over the next few years.

New Means of Transport

The last couple of years have seen a surge in the introduction of car riding platforms such as Uber and Careem which have employed a significant portion of the nation, and modernized methods of Egyptian transportation.
As it stands, Cairo is Uber’s fastest growing city, and in their few years of operation in Egypt, they have already partnered up with the Nile Taxi service to provide ‘Uber Boat’, and last year they launched ‘Uber Bus’, a public bus service which operatse across all of Egypt’s governorates.

The undeniable success of such companies has inspired the likes of Egyptian start-up ‘SWVL’ to launch an app-based booking service for clean, new and efficient buses, which provide transportation at low prices.

Private bus transportation services, such as Uber buses, began operation at the end of ى2018 and have expanded operations in 2019.

River Transport

As well as Uber’s Boat service, Nile Taxi was recently launched to provide a new and environmentally conscious means of transport around the city, and has been hugely successful with locals and tourists alike.

Bridges

Two Tunnels, 9 pedestrian bridges and 15 vehicle bridges, at a cost of EGP 3.9 billion will be constructed in 6th of October city. An additional EGP 1.6 billion will be allocated to the maintenance of the roads in the internal suburban district.

Suez Canal Expansion Project

This monumental project expanded the canal to allow ships to sail in both directions at the same time over much of the canal’s length, and it now provides the shortest shipping route from Europe to Asia.

Aside from the canal itself, the expansion project includes a plan to open seven new tunnels (three in Port Said and four in Ismailia) and to transform a 76,000 km2 area on both banks of the canal into an international logistics, commercial and industrial hub. A number of ship repair and rescue services will also be included in these developments. Additionally, as part of the project, ports will be launched at the entrances of the canal to put Egypt on the global supply chain map.

The Suez Canal Economic Zone

Days after the inauguration of the New Suez Canal, the president issued decree No. 330/2015 to create a special economic zone (SCZONE) in the area adjacent to it, to support the projected regional development plan to turn the strategic waterway into an industrial hub.
The zone spans over 461 square kilometers and consists of two integrated areas, two development areas and four ports. The SCZONE aims to

transform the area into a world-class global logistics hub and industrial processing center which serves European, Asian, African and Gulf markets and stimulates economic growth within the country.

Each area within the zone provides investment opportunities in Egypt’s leading economic sectors, namely, industrial and commercial enterprises, infrastructure and real estate development, logistics, amenities and
technology.
Port expansions will also increase the capacity for handling maritime traffic and for offering related services such as ship building, stevedoring, bunkering, vessel scrapping and recycling. To facilitate business within the
area, registration, licensing and permit applications have been streamlined so that investors from all corner of the world can apply quickly and efficiently.

Incentives

Companies operating within the SCZone are entitled to:
-100% foreign ownership of companies
-100% foreign control of import/export activities
– Imports exempt from customs duties and sales tax
– Customs duties on exports to Egypt imposed on imported components only, not the final product
– Fast tracked visa services

Project Overview

The proposed governmental development project consists of the following:
Two Integrated Areas:

1 | Ain Sokhna

This region consists of a major industrial and logistics hub at the southern gateway of the Suez Canal, combining port facilities, industrial zones, residential areas, as well as road and rail connections between Cairo and Suez. A number of real estate development opportunities exist here for building residential communities. Suitable maritime-related activities include ship building and repair services, bunkering, vessel scrapping and recycling are also available.
Developments in this area also include the introduction of the Sokhna Port covering an area of 22.3 km2.

2 | East Port Said

Similar to the Ain Sokhna developments, East Port Said port is also set to be expanded by 26 km2.

Two Development Areas:

A new residential area that is ideal for agribusiness projects due to its proximity to the Delta. Currently, there are 13.6 km2 available for development in an area well supplied with water, electricity and sewage. Suitable logistics enterprises include warehousing services, transportation and distribution, and freight forwarding.

2 | East Ismailia

This area is set to be the ‘administrative centre’ of the SCZone, and will be ideal for high-tech industries, as well as educational and scientific research institutions. East Ismailia is located 10 km east of the Suez Canal and covers an area of 71 km2. The area is fully serviced with a consistent electricity and water supply, offering prospects for research and development facilities, as well as commercial ventures and services. A tunnel is currently under

construction to link East Ismailia with the Egyptian mainland, greatly decreasing east to west transportation time.

The Four Ports are:

– West Port Said Port
– Adabiya Port
– Al Tor Port
– Al Arish Port
Each integrated development area provides opportunities for investment in commercial & industrial enterprises, logistics, real estate, infrastructure and technology. Capacity for handling maritime traffic and related services such as vessel scrapping shipbuilding, recycling, bunkering and stevedoring will also be increased through the planned port expansions.