The Information and Decision Support Center of Egypt’s Cabinet has released a report titled "Maritime Trade Gateways at the Core of Global Strategy." This report highlights the vital economic role of ports in facilitating international maritime trade, which handles over 80% of global goods, with containerized shipments comprising 35% of the volume and over 60% of the value.
According to the 2023 Container Port Performance Index by the World Bank and S&P Global, China's Yangshan Port retained its first position for the second consecutive year.
Oman’s Port of Salalah ranked second, followed by Colombia’s Cartagena Port in third, Morocco’s Tanger Med in fourth, and Malaysia’s Tanjung Pelepas in fifth.
UNCTAD reported a 3.8% growth in maritime trade in 2021, reaching 11 billion tons, a level comparable to pre-pandemic figures. Bulk carriers still dominate, but containerized and dry goods now constitute nearly three-quarters of total trade volumes. Developing economies, particularly in Asia, account for a significant portion, with 50% of global unloading and 35% of loading in 2021.
Recent crises, including COVID-19 and the Russia-Ukraine war, have disrupted maritime trade. Grain shipments, for instance, have faced challenges, leading to longer shipping routes and delays in key waterways like the Suez and Panama Canals. The Suez Canal saw a 50% year-on-year decline in traffic during the first two months of 2023 due to regional tensions, while traffic around the Cape of Good Hope increased by 74%.
The report highlights the need for smart and environmentally sustainable ports to ensure supply chain resilience. UNCTAD noted a 20% increase in shipping-related emissions from 2012 to 2023. The International Maritime Organization (IMO) has introduced regulations to decarbonize the sector, requiring investments between $28 billion and $90 billion annually through 2050 for clean fuel infrastructure.
Egypt’s strategic location, bordering the Mediterranean and Red Seas, positions it as a hub for global trade. The country operates 55 seaports, including 18 commercial and 37 specialized ports, supported by 23 marinas. Key features include:
- Geographic Advantage: Minimal deviation from global shipping routes.
- Container Traffic Growth: Egyptian ports handled 12.4 million TEUs in 2022, up from 7 million in 2019.
- Cargo Capacity: Ports managed 181 million tons of goods in 2023, with imports comprising 41.2% of the total.
Egypt has invested heavily in port infrastructure, with $8.5 billion spent in 2021/2022. Major projects include:
- Alexandria Port: A multi-purpose terminal (“Tahya Misr”) and a dry bulk terminal are under construction, along with a logistics zone costing $2 billion.
- Damietta Port: Development includes a multi-purpose terminal and grain storage facilities worth $4.5 billion.
- Red Sea Ports: Upgrades in Safaga, Nuweiba, and Ain Sokhna include new berths and logistics areas.
- East Port Said: Newly constructed berths and the introduction of green fuel initiatives.
Egypt has partnered with global companies specializing in port management to boost its capacity and expand transshipment trade. Plans include increasing the annual capacity to 40 million TEUs and accommodating 30,000 large ships annually.
Container Port Performance Index: Egypt’s ports rank among the top globally for operational efficiency.
Maritime Connectivity Index: Egypt ranks 23rd worldwide, reflecting its growing prominence in global trade networks.
Egypt’s investments in port infrastructure and strategic initiatives aim to enhance its position as a global trade hub. With ongoing developments and environmental adaptations, the country is poised to play a pivotal role in shaping the future of maritime logistics.
Source: Egypt Today
