top 5 funded logistics companies: Ken Research

1. Egypt’s Logistics Market Expecting to reach ~35bn USD by 2026F: Ken Research The Egypt Logistics Industry recorded a positive CAGR of 10.3% between 2017 and 2021 owing to Logistics Infrastructure Development in the country due to various encouraging factors lined up in the development of the sector as per the report by Ken Research. Click to Read Full Article: Egypt Logistics Market As Cairo being the busiest airport in whole of Africa and also great road and port facilities, Egypt has a vibrant range of infrastructure, which helps in the smooth flow of goods. Its Logistics Industry is expected to grow at a CAGR of ~7.5% based on revenue between 2021 and 2026F. In the FY 2020/21 budget the government allocated LE244.7bn ($15.5bn) to the transport sector – more than doubling the previous fiscal year’s sector budget. The increase in public spending went to improve infrastructure, road networks, and tunnels and transport networks. To learn more about this report Download a Free Sample Report 1. Major Growth Drivers Are the Initiative of Government in Logistic Sector

2. Government of Egypt is taking initiatives to flourish logistic markets. The development strategy of each corridor composed of roads, seaports, airports, inland waterways reinforces connectivity linking major cities inside and outside of the country. In August 2014, the "National Roads Project" was launched aiming to create new roads of 3,300 km length with a total cost of about E£36 bn. The Ministry of Transport represented by the General Authority for Roads, Bridges and Land Transport is executing about 1,300 km at a cost of E£17 bn. The Ministry of Housing represented by the Central Agency for Reconstruction is executing another 800 km. The two organizations are funded from NIB. Under the 10-year transport modernization plan, 30,000 km of new and developed roads are set to be completed by the end of 2024. Additionally, in 2020 the MoT stated that $8.3bn had been budgeted to build 1000 bridges and tunnels by 2024, with around 60% of projects completed at the time of the announcement. This will lead to the growth of market in Egypt. To ease pressure and help support the tourism sector, construction of a fourth terminal at the Cairo International Airport was announced in 2019, which will increase annual capacity to 20m Two new airports were inaugurated in 2020 to serve the Greater Cairo area: Sphinx International Airport in Giza and the Capital International Airport near the NAC. As part of Egypt Vision 2030 and its focus on infrastructure, the government plans to increase port capacity from 120m tonnesin 2016 to 370m tons by 2030. A $10bn mega-project is under way to expand the Suez Canal – including extending a second channel and enlarging 30 km of the canal by 40 meters–, which is expected to increase its capacity to 97 ships per day and raise revenue to $13bn 2. Growth Drivers of Various Segments of Logistic Market Express & Parcel and Warehousing Markets are high growth segments based on their CAGR: Various corridors and multilevel hubs are driving the growth of overall logistics market in Egypt. As per the 2021-2026F, the CAGR of warehousing and Express & courier market is increasing due to reasons such as Introduction of connected 3D printing. Government initiated Vision 2030 to create an efficient, competitive and environmentally friendly logistics system. Freight forward market growth: Development of Multimodal Freight Logistics Hubs will connect various freight forward transport modes at strategic transport nodes. Freight transport will majorly continue through the Suez Canal. VAS market growth: The increasing value of exports & imports leads to more complex custom clearance procedures in Egypt, thus driving up the demand for Value Added Services in the country and also in warehousing.

3. Warehouse logistic market growth: Many are near major trading hubs resulting in the growth of the market. Warehouse Management Systems and automated processes. The Suez Canal EZ and Golden Triangle EZ are expected to be completed which will further bolster growth of warehousing market. Other reasons being usage of Custom warehouses where goods can be stored without VAT. Also Booming E-Commerce, Increasing Cold Chain Capacity and automated warehouses in Cairo, Alexandria and near the Suez Canal. High demand for built-to-suit and Courier express and parcel market: Development of Custom warehousing can help simplify export and import processesby lowering the advance income tax burden. Egypt will see a tremendous growth in e-commerce platforms and Facebook online shopping channels in the coming years. Others sectors: Increased Utilization and Reduction in Idle time of the vehicles due to Machine learning and AIis assisting fleet owners in planning optimal routes for their vehicles Industry is witnessing increase in number of new players and existing players like CSC, DB Schenker resulting in the growth of logistic market in Egypt. Conclusion: According to the report of Ken research, Egypt’s Logistic market is expected growth till 2026F because of the mixed efforts of the government and business investors and owners. Initiative taken by the government led attraction from international business to improve the logistics simultaneously. Egypt’s geographical and demographic structure gives benefits to the market ,taking example of Suez canal and its improved ports and fleet. Digitalization and AI is also giving a helping hand by developing the freight forward and warehousing markets. Egypt’s logistic market is growing and is expected to grow further by 2026F.