Egypt Logistics and Warehousing Market Outlook to 2029

The report titled “Egypt Logistics and Warehousing Market Outlook to 2029 - By Service Mix (Freight Forwarding, Warehousing, Value-Added Services), By Mode of Transport (Road, Rail, Air, Sea), By End-User Industry (Retail, FMCG, Automotive, Healthcare, Industrial & Others), and By Region” provides a comprehensive analysis of the logistics and warehousing industry in Egypt. The report covers an overview and genesis of the sector, overall market size in terms of revenue, segmentation, key trends and developments, regulatory framework, customer profiling, challenges and opportunities, and a comparative landscape of leading companies in the logistics and warehousing space. The report concludes with future market projections based on revenue, service category, transport mode, industry use, regional demand, and includes success case studies highlighting growth levers and critical pitfalls.

Egypt Logistics and Warehousing Market Overview and Size

The Egypt logistics and warehousing market reached a valuation of EGP 110 Billion in 2023, driven by increasing import-export activity through the Suez Canal, rising e-commerce penetration, and government-backed infrastructure development projects. The market is dominated by players such as Egypt Post, Aramex Egypt, DHL, Agility Logistics, and DB Schenker Egypt, who are recognized for their wide transportation networks, warehousing capabilities, and integrated supply chain services.

In 2023, the government announced the expansion of Logistics Zones in 14 governorates, aiming to improve last-mile delivery and cold chain capacity. Cairo, Alexandria, and Port Said remain the strongest logistics hubs due to proximity to ports, population centers, and trade corridors.

Market Size for Egypt Logistics and Warehousing Industry on the Basis of Revenue (EGP Billion), 2018–2023

Source: TraceData Research Analysis
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What Factors are Leading to the Growth of Egypt Logistics and Warehousing Market:

• Strategic Location & Trade Growth: Situated at the crossroads of Europe, Asia, and Africa, Egypt has a strong strategic advantage. In 2023, the Suez Canal recorded over 23,000 ship crossings, contributing significantly to logistics activities and demand for port-based warehousing and transshipment services.

• Infrastructure Development: Under Egypt Vision 2030, the government has invested heavily in logistics corridors, industrial parks, and multimodal transport networks. More than EGP 45 Billion was allocated between 2019-2023 for logistics infrastructure improvements, including dry ports and bonded warehouses.

• E-Commerce and Retail Boom: Online retail sales in Egypt grew by 27% YoY in 2023, creating substantial demand for warehousing solutions, fulfillment centers, and express delivery services. Companies such as Jumia Egypt and Amazon Egypt have expanded their last-mile and storage capabilities to cater to rising online shoppers.

Which Industry Challenges Have Impacted the Growth for Egypt Logistics and Warehousing Market

• Fragmented Market Structure: A significant challenge in Egypt’s logistics sector is the fragmentation of service providers. Over 70% of logistics companies are small or medium-sized enterprises with limited geographic reach and operational scale. This fragmentation results in inefficiencies, poor coordination, and inconsistent service quality across the supply chain, hindering the ability to serve large-scale contracts or adopt new technologies.

• Infrastructure Bottlenecks: Despite government initiatives, congestion at key ports like Alexandria and Port Said, limited rail freight capacity, and underdeveloped road networks in rural regions remain bottlenecks. As of 2023, over 60% of goods movement relied on road transport, which is often delayed due to traffic congestion and poor road maintenance, especially outside urban centers.

• Regulatory and Customs Delays: Complex customs procedures and varying regulations across different governorates add time and cost burdens. According to World Bank’s 2023 Logistics Performance Index, Egypt scored low on customs efficiency and ease of cross-border trade, contributing to average clearance delays of 3–5 days for international shipments.

What are the Regulations and Initiatives which have Governed the Market:

• National Logistics Strategy (2022–2030): Egypt's Ministry of Transport and Ministry of Trade and Industry are jointly implementing a national logistics strategy aimed at transforming the country into a regional logistics hub. Key focus areas include improving multimodal transport corridors, integrating logistics zones, and digitizing customs procedures.

• Dry Port and Inland Logistics Zones Regulations: The government has issued Public-Private Partnership (PPP) guidelines for dry ports and inland logistics zones. In 2023, the 10th of Ramadan Dry Port became operational, with capacity to handle over 1 million TEUs per year, providing tax relief and faster customs for warehousing operators.

• Customs Automation and Single Window System: To streamline international trade, the Nafeza platform (Egypt’s National Single Window for Foreign Trade) became fully operational in 2023, integrating port authorities, customs, and logistics providers. This has reduced clearance times by 30% on average, and is mandatory for all importers/exporters.

Egypt Logistics and Warehousing Market Segmentation

• By Market Structure: Unorganized players dominate the market due to their widespread regional presence, low operating costs, and ability to offer customized logistics solutions for local needs. These firms often serve informal retail, small-scale manufacturers, and rural zones with limited infrastructure. Organized players hold a growing share, particularly in sectors such as e-commerce, FMCG, and pharmaceuticals, where clients demand structured operations, traceability, and adherence to regulatory standards. Companies like DHL, Aramex, and Agility Egypt are expanding rapidly in industrial zones and metro cities to tap into this growing demand.

• By Mode of Transport: Road transport leads the logistics ecosystem in Egypt, as it offers flexible door-to-door connectivity across both urban and rural areas. The country’s dependency on roads is driven by underdeveloped rail logistics and delays in port clearance. Sea freight follows due to Egypt’s strategic Suez Canal route and robust maritime activity at Alexandria, Damietta, and Port Said ports. Rail and air transport are still evolving, with limited capacity and high cost structures, although government investment in rail freight corridors is expected to improve modal share in the coming years.

• By End-User Industry: Retail and e-commerce are the largest contributors due to the rise in online shopping and the expansion of urban consumer bases. FMCG and food sectors require reliable cold chain and ambient storage solutions and contribute significantly to warehousing and secondary transportation demand. The automotive sector depends on logistics for spare parts movement and CKD shipments. Pharmaceuticals require specialized cold chain infrastructure, making them a high-margin but niche segment.

Competitive Landscape in Egypt Logistics and Warehousing Market

The Egypt logistics and warehousing market is moderately consolidated, with a mix of international logistics giants and strong regional players. However, the sector has seen increasing participation from specialized local firms and digital logistics platforms. Key players include Aramex Egypt, DHL Egypt, Egypt Post, Agility Logistics Egypt, DB Schenker Egypt, and Naqla. These companies are investing in infrastructure, digital supply chains, and last-mile networks to strengthen their footprint in the growing Egyptian economy.

Some of the recent competitor trends and key information about competitors include:

• Aramex Egypt: A leading logistics provider with a strong presence in international express delivery and freight forwarding, Aramex expanded its warehousing capacity in 2023 by launching a new 20,000 sqm fulfillment center in Greater Cairo to support e-commerce logistics growth.

• DHL Egypt: As part of its regional expansion strategy, DHL launched its Smart Logistics Hub near Cairo Airport in 2023, enhancing capabilities in air freight, customs brokerage, and cold chain services. The company reported a 15% increase in pharma logistics demand year-on-year.

• Egypt Post: One of the oldest postal and logistics organizations in the region, Egypt Post modernized 150 branches and added last-mile delivery services in partnership with local tech startups. In 2023, it handled over 100 million domestic shipments, with rising volumes from rural and underserved areas.

• Agility Logistics Egypt: Agility has been a pioneer in contract logistics and integrated supply chain solutions in Egypt. The company invested over EGP 250 million in new warehouse automation systems and IT upgrades in 2023 to meet the rising needs of FMCG and industrial clients.

• DB Schenker Egypt: A key player in industrial freight and project logistics, DB Schenker expanded its multimodal services connecting the Mediterranean coast with Upper Egypt. The company also introduced sustainability initiatives including EV fleet pilots and solar-powered storage units.

• Naqla: A rising tech-enabled logistics startup, Naqla provides on-demand trucking and supply chain visibility through a digital platform. In 2023, Naqla onboarded over 10,000 truckers, growing its transport volume by 32% YoY and becoming a critical player in Egypt’s B2B freight segment.

What Lies Ahead for Egypt Logistics and Warehousing Market?

The Egypt logistics and warehousing market is projected to witness robust growth by 2029, exhibiting a healthy CAGR during the forecast period. This growth will be driven by infrastructure modernization, rising domestic consumption, and Egypt’s evolving position as a regional trade and logistics hub.

• Expansion of Logistics Zones and Dry Ports: The government’s continued investment in dry ports and inland logistics zones is expected to ease port congestion and improve cargo flow efficiency. By 2029, key developments like the 10th of Ramadan Dry Port, 6th of October City Dry Port, and Sokhna Logistics Hub are projected to be fully operational, enhancing multimodal connectivity and reducing transit times by up to 20%.

• Digital Transformation of Supply Chains: The use of AI, IoT, and real-time tracking in warehouse and fleet management will significantly improve operational efficiency. Technologies such as automated inventory systems, telematics, and blockchain-enabled customs clearance are anticipated to reshape the logistics landscape, reducing lead times and boosting transparency.

• Rising Role of E-Commerce Logistics: With Egypt’s e-commerce market projected to cross EGP 150 billion by 2029, there will be a sharp rise in demand for urban fulfillment centers, last-mile delivery hubs, and reverse logistics solutions. Companies are expected to expand warehouse footprints in Cairo, Alexandria, and Mansoura to meet delivery time expectations and cost-efficiency targets.

• Sustainability and Green Logistics Initiatives: In line with Egypt’s Vision 2030, logistics players will increasingly adopt electric delivery fleets, solar-powered warehouses, and eco-packaging solutions to meet ESG goals. These sustainable practices will also attract global clients seeking low-carbon logistics partnerships in the MENA region.

Egypt Logistics and Warehousing Market Segmentation

• By Market Structure:
o Organized Sector
o Unorganized Sector
o State-Owned Logistics Providers
o Private Logistics Companies
o Digital Freight Platforms
o 3PL (Third-Party Logistics)
o 4PL and Integrated Logistics

• By Mode of Transport:
o Road Transport
o Rail Transport
o Sea Freight
o Air Freight
o Multimodal Logistics

• By Service Type:
o Freight Forwarding
o Warehousing
o Cold Chain Logistics
o Last-Mile Delivery
o Value-Added Services (Packaging, Labelling, Kitting)
o Contract Logistics

• By End-User Industry:
o Retail & E-commerce
o FMCG
o Automotive
o Healthcare & Pharmaceuticals
o Industrial & Manufacturing
o Food & Agriculture
o Electronics & Appliances

• By Region:
o Greater Cairo
o Alexandria & Mediterranean Region
o Suez Canal & Red Sea Ports
o Nile Delta
o Upper Egypt
o New Urban Developments & Economic Zones

Players Mentioned in the Report:

• Aramex Egypt
• DHL Egypt
• Egypt Post
• Agility Logistics Egypt
• DB Schenker Egypt
• Naqla
• Bosta
• R2S Logistics
• Yalla Fel Sekka

Key Target Audience:

• Logistics Companies
• Warehousing and Infrastructure Developers
• E-commerce Platforms
• Cold Chain Service Providers
• Industrial and Manufacturing Firms
• Government Bodies (e.g., Ministry of Transport, General Authority for Land and Dry Ports)
• Trade & Export Promotion Agencies
• Research and Consulting Firms

Time Period:

• Historical Period: 2018–2023
• Base Year: 2024
• Forecast Period: 2024–2029