A Deep Analysis of Egypt’s Transport Sector

Updated 3/30/2024 9:00:00 AM

The Egyptian government has been working on enhancing the infrastructure of its transport sector to turn the country into a regional logistics hub.

In 2023, Egypt ranked 57^th in the International Logistics Performance Index (LPI). In the sub-index evaluating the quality of trade and transport-related infrastructure, Egypt received a score of 3, securing the 55^th rank among 139 countries.

In this Factsheet, we will know more about the latest developments within the Egyptian transport sector, explore the sector’s economic importance, and finally, present the state’s future plan for the sector.

Within the framework of the country’s plan to become a global trade hub, Egypt established 25 dry ports and a logistics park in 2023. In addition to implementing a number of projects totaling EGP 129 million.
At the end of 2023, the country boasted 18 ports, with a collective annual capacity of 270 million tons of cargo. Moreover, the national road network extended over 7,000 kilometers.
The transport sector’s gross domestic product (GDP) increased by 28% to EGP 493 billion in fiscal year (FY) 2022/23, compared to EGP 385 billion in the preceding year. The sector contributed around 5.1% to the country’s total GDP in FY2022/23. The government further plans to elevate the sector’s contribution to GDP to EGP 864 billion during the current FY.
In FY2022/23, public investments in transportation reached EGP 231 billion, marking a year-on-year (YoY) growth rate of 25.2%. The sector accounted for 26.5% of Egypt’s total public investments during the current FY.
Total investments directed towards the sector are estimated at EGP 321 billion for the current FY2023/24, with public investments making up 84%.
Private sector investments in transport activities accounted for 11% of total investments in FY2022/23. Investments declined by 6.7 % YoY to EGP 28 billion.
The Suez Canal played a pivotal role in bolstering the country’s surplus of service trade balance, with transport proceeds rising by 43.8% to $14 billion in FY2022/2023.
In its 2024-2030 strategy for the most important economic sectors, the Egyptian government targets boosting the transportation and storage sector’s average growth rate to 6% in 2030. This strategy also involves increasing investments in the sector to EGP 1.53 trillion between 2024 and 2030, compared to EGP 1.32 trillion in investments during 2014-2023.
The government strategy targets raising the public spending on transport infrastructure to EGP 680 billion during 2024-2030.
The planned infrastructure expansions include a 50% increase in the national road network’s length to reach 10,500 km, building 34 corridors and 1,160 bridges, and boosting railways capacity to 3.5 million passengers per day and 25 million tons of goods.