Report Overview

Increasing investments in the development strategic infrastructure development projects, rising demand from the thriving e-commerce, favorable government reforms, adoption of technological advancements, and the development of logistics hubs and free zones are expected to drive Egypt Freight and Logistics Market during the forecast period between 2025 and 2031.

Egypt Freight and Logistics Market – Industry Trends & Forecast Report, 2031

Egypt Freight and Logistics Market size was estimated at USD 9.87 billion in 2024. During the forecast period between 2025 and 2031, Egypt Freight and Logistics Market size is projected to grow at a CAGR of 4.56% reaching a value of USD 13.49 billion by 2031. Strategic infrastructure investments, including the modernization of ports and highways, are enhancing transportation efficiency. The rise of e-commerce is driving demand for reliable logistics services and last-mile delivery solutions. Favorable government reforms, such as the development of logistics hubs and free zones, are attracting international trade and investment. Technological advancements, including automation and digitalization, are improving supply chain management. Additionally, the expansion of warehousing capacity and partnerships between e-commerce platforms and logistics providers are contributing to market growth.

Freight and Logistics – Overview

Freight and logistics play a crucial role in global trade, ensuring the efficient movement of goods across various transportation modes—road, rail, air, and sea. This sector involves freight forwarding, warehousing, storage, and last-mile delivery, supporting industries like manufacturing, retail, agriculture, and construction. Key driving factors include technological advancements, infrastructure development, e-commerce growth, and government reforms fostering trade and investment. Challenges such as aging infrastructure, traffic congestion, and workforce limitations persist, while opportunities lie in green logistics and digital transformation.

Egypt Freight and Logistics Market

Growth Drivers

Strategic Infrastructure Investments

The Egyptian government is heavily investing in modernizing ports, highways, and railroads to enhance transportation efficiency. Key projects like the Suez Canal Economic Zone (SCZone) and the New Administrative Capital aim to improve connectivity and streamline goods movement domestically and internationally. These initiatives reduce transit times, lower transportation costs, and attract global trade and investment. Such strategic infrastructure developments are pivotal in positioning Egypt as a regional logistics hub, driving growth in the freight and logistics market.

Challenges

Traffic Congestions

Traffic congestion in Egypt, particularly in urban areas like Cairo, poses significant challenges to the freight and logistics market. It leads to delays in delivery schedules, increased fuel consumption, and higher operational costs for logistics companies. The inefficiencies caused by congestion disrupt supply chain management and reduce overall productivity. Addressing this issue requires enhanced traffic management systems, infrastructure upgrades, and strategic planning to optimize transportation routes and improve the flow of goods across the country.

Impact of Escalating Geopolitical Tensions on Egypt Freight and Logistics Market

Escalating geopolitical tensions could adversely affect the growth Egypt Freight and Logistics Market. Disruptions in key trade routes, such as the Suez Canal, lead to increased transit times and higher freight costs. Rising fuel prices due to conflicts in oil-rich regions further inflate operational expenses. Security concerns elevate insurance premiums, adding financial strain on logistics providers. Additionally, rerouting shipments around conflict zones creates inefficiencies and delays. These challenges hinder supply chain reliability and trade flow, affecting Egypt's position as a regional logistics hub. However, opportunities exist in diversifying trade partnerships and enhancing infrastructure to mitigate the adverse effects of geopolitical instability.

Egypt Freight and Logistics Market

Segmental Coverage

Egypt Freight and Logistics Market – By Logistics Function

By logistics function, Egypt Freight and Logistics Market is divided into Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing, and Storage segments. The freight transport segment is the largest in Egypt Freight And Logistics Market. This dominance is driven by significant infrastructure developments, including nearly 80 transportation projects, such as port developments and multimodal transport facilities, with an estimated investment of USD 6.6 billion. Egypt's strategic location, bridging Europe, the Middle East, and Africa, further strengthens this segment's position. The government's Vision 2030 aims to expand port handling capacity to 370 million metric tons from the current 120 million metric tons, enhancing freight transport capabilities.

Egypt Freight and Logistics Market – By End User

On the basis of end user, Egypt Freight and Logistics Market is divided into Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil & Gas, Mining & Quarrying, and Wholesale & Retail Trade segments. The wholesale & retail trade segment is the largest end user in Egypt Freight and Logistics Market. The segment’s market dominance is driven by significant investments from major retail chains. For instance, Carrefour has committed over USD 30.25 million for new store launches and renovations until 2025. Additionally, GMG plans to establish more than 100 sports retail stores in Egypt by 2026, and French retailer Geant is investing over USD 63.3 million to open 15 stores by 2026. The segment is projected to grow at approximately 6% from 2024 to 2029, supported by the rapid expansion of modern retail across the African continent.

Egypt Freight and Logistics Market – By Mode of Transport

By mode of transport, Egypt Freight and Logistics Market is divided into Road, Rail, Air, and Sea segments. ​The road transportation segment is dominant in Egypt Freight and Logistics Market by mode of transport, due to road transport's flexibility, cost-effectiveness, and extensive coverage across the country. Following road transport, maritime transport accounts for about 25% of the market, while air freight accounts for approximately 15%. The government's focus on maintaining and enhancing road infrastructure further supports the leading position of road transportation in Egypt's logistics sector.

Competitive Landscape

Major companies operating in Egypt Freight and Logistics Market include A.P. Moller - Maersk, DB Schenker, DHL Group, DSV A/S, Kuehne + Nagel, Agility Logistics, CEVA Logistics, FedEx Corporation, Aramex, Bolloré Logistics, and UPS Supply Chain Solutions. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Logistics Function

• Courier, Express, and Parcel (CEP)

• Freight Forwarding

• Freight Transport

• Warehousing and Storage

By End User

• Agriculture, Fishing, and Forestry

• Construction

• Manufacturing

• Oil & Gas

• Mining & Quarrying

• Wholesale & Retail Trade

By Mode of Transport

• Road

• Rail

• Air

• Sea