Egypt’s logistics and freight ecosystem is entering a period of rapid transformation and growth that is reshaping the country’s role in global trade. A new market forecast shows freight demand is set to expand steadily at an 8.31 percent compound annual growth rate through 2030, driven by major infrastructure investments, booming e‑commerce, and strategic trade positioning on key international routes.
With global supply chains evolving and regional trade flows intensifying, Egypt is emerging as a vibrant hub for freight movement, warehousing, and cold chain services. Industry leaders, government reforms, and international investors are together building an integrated logistics backbone that could redefine markets across North Africa and the Middle East.
Freight Demand Growth Tied to Trade and Infrastructure
Industry research points to significant growth in Egypt’s logistics market through the end of the decade, supported by deepening trade links and infrastructure modernisation. Road freight remains king in domestic goods movement, carrying the bulk of freight volumes domestically. The dominance of road transport reflects Egypt’s reliance on trucking for time‑sensitive cargo and last‑mile deliveries, especially for sectors such as agriculture and retail.
Economic sectors including agriculture, manufacturing, construction, retail and oil and gas accounted for nearly 85 percent of freight transport demand in 2024, underscoring the critical role of logistics in the national economy. Investment in national roads and freight corridors is making transport more efficient and cost‑effective, driving demand for reliable warehousing and cold storage solutions across the country.
At the same time, maritime connectivity and port throughput improvements are enhancing Egypt’s global trade position, with major ports handling millions of tons of cargo annually and significant increases in vessel calls. These developments reinforce Egypt’s strategic role as a transshipment point between Africa, Europe and Asia.
Major Investments Fuel Logistics Expansion
A series of high‑profile investments by global logistics players reflects confidence in Egypt’s long‑term potential. DP World has inaugurated a logistics park in the Sokhna Industrial Zone near Sokhna Port, backed by an investment of around $85 million. This facility covers more than 300,000 square meters and is designed to integrate bonded warehousing, customs clearance, and multimodal freight services. It is expected to support a wide range of industries from agribusiness to automotive components and will significantly strengthen trade connectivity.
The Sokhna Logistics Park already houses a substantial pipeline of customers and is expected to create jobs as it expands into later phases by 2026 and beyond. It sits within the Suez Canal Economic Zone, a priority area for industrial and logistics development that has attracted billions in project investments over recent years.
Leading global players such as DHL Express are also ramping up operations, with multi‑million euro investments in logistics centres designed to double capacity and improve express delivery volumes. Scan Global Logistics has expanded its footprint in Egypt, highlighting the region’s importance for international freight and supply chain networks.
Warehousing and E‑Commerce Fuel Market Growth
Growing domestic consumption and the rise of e‑commerce have spurred demand for warehousing and fulfillment services. The logistics and warehousing market in Egypt was valued at around EGP 110 billion in 2023, with forecasts pointing to strong expansion as online retail and express delivery services grow.
Warehousing capacity across the country has increased in response to this demand, with cities such as Cairo, Alexandria and Port Said emerging as logistics hubs due to their proximity to ports, major highways, and dense population centers. Retailers and e‑commerce platforms are investing in modern warehousing technology, including automated systems and real‑time inventory management tools, to improve efficiency and reduce delivery times.
Cold chain infrastructure is also expanding rapidly to support temperature‑sensitive cargo. Although cold storage capacity was historically limited, new facilities are being built to meet the needs of food and pharmaceutical sectors. For example, logistics firms have started work on modern cold storage facilities in cities like 6th of October City, designed to bolster the country’s capacity to handle perishables and medical products.
Research shows that Egypt’s cold chain market is projected to grow significantly in the coming decade, driven by rising demand for refrigerated storage and transportation of food products, dairy, pharmaceuticals and other sensitive goods. Efforts to adopt smart cold chain technologies, including IoT‑enabled monitoring and predictive analytics, are expected to improve temperature control and reduce spoilage risks.
Strategic Maritime Importance and Port Modernisation
Egypt’s port network plays a pivotal role in global trade flows, particularly through the Suez Canal and the Red Sea corridor. Major commercial ports handle a substantial share of maritime traffic, reinforcing Egypt’s position as a gateway for goods moving between Europe, Asia and Africa.
Ain Sokhna Port, for example, has emerged as a critical transshipment hub with expansion plans that include new container terminals and logistics distribution centers.
The strength of Egypt’s maritime connectivity not only supports freight volumes but also attracts international logistics providers seeking to link global shipping networks with land transport and warehousing infrastructure. As global supply chains diversify, Egypt’s strategic location continues to be a competitive advantage that underpins long‑term logistics investment.
Challenges and Opportunities in Market Development
Despite the strong growth outlook, the logistics and cold chain sectors face challenges. Fragmented market structures, high operational costs in cold chain operations, and infrastructure bottlenecks in rural areas have constrained expansion in some segments. Energy costs and power reliability can also affect the cost of temperature‑controlled storage facilities.
Nevertheless, public‑private partnerships and government initiatives are addressing these issues by upgrading transport networks, expanding dry ports, and investing in multimodal logistics hubs that combine road, rail, air, and sea freight capabilities. These reforms are expected to improve the efficiency of the logistics ecosystem, reduce delays at customs and ports, and attract further foreign investment.
Infrastructure development under Vision 2030 and similar national strategies is aimed at bolstering supply chain resilience, reducing dependency on road freight alone, and promoting rail and waterway transport options over time.
What This Means for Business and Consumers
For businesses, the expanding logistics and warehousing network means better access to markets, faster delivery times, and more reliable cold chain services for perishable goods. Retailers and manufacturers can expect improvements in supply chain visibility and cost efficiency as infrastructure improves and technology adoption increases.
Consumers could see benefits in the form of fresher produce, broader availability of imported goods, and faster deliveries, especially in major urban centers.
As global freight demand continues to grow and supply chains evolve, Egypt’s strategic investments position it to capture a larger share of international trade flows, making its logistics, warehousing and cold chain market a key growth story in the region.
