Introduction
In today’s interconnected world, a country’s connectivity is the backbone of its international trade and investment capabilities. The extent to which economies are linked within global trade networks directly influences trade costs, competitiveness, and participation in regional and global value chains. This intricate web of trade-supporting networks—spanning shipping, logistics, and data infrastructure—owes much of its efficacy to strategic investments in seaports, roads, railways, and airports[1].
With over 80% of global trade volume dependent on maritime transport, a nation’s ability to plug into international supply chains rests heavily on its maritime connectivity. Reliable and efficient shipping services are the lifeblood of global commerce, and countries with weak connectivity risk being sidelined from major trade routes, limiting their economic potential[2].
For developing nations, continually upgrading seaport infrastructure is not just beneficial but essential. High-quality seaports enhance logistics efficiency, boost maritime trade, and drive economic growth.[3] This blog takes you on an insightful journey through the Liner Shipping Connectivity Index (LSCI) developed by the UNCTAD, spotlighting Egypt’s rank and performance in this critical index. We’ll explore the strengths of Egypt’s major seaports, identify the challenges they face, and reveal the government’s strategies to elevate Egypt as a pivotal global transit trade hub.
What’s LSCI and What Does It Measure
The LSCI serves as a measure of a country’s maritime connectivity and integration into global trade networks. It evaluates the quality and efficiency of a country’s container shipping services, considering factors such as the number of shipping companies, the frequency of services, and the size of vessels calling at its ports. A higher LSCI score indicates stronger connectivity and easier access to international markets, while a lower score suggests limited integration and potentially higher trade costs. Policymakers, investors, and analysts often use the LSCI to assess a country’s competitiveness, trade potential, and economic development prospects.[4]
In the first quarter (Q1) of 2024, China, South Korea, Singapore, USA, and Malaysia were the top 5 countries in the LSCI with scores 1,187, 640, 591, 494, and 485, respectively[5].
Overview on Egyptian Port Authorities Capacity
Egypt has a total of 18 commercial ports[1]. The ports are divided into four authorities, covering 15 ports, including Alexandria Port Authority, Damietta Port Authority, Red Sea Ports Authority, and Suez Canal Economic Zone Authority (SCZone)[2].
Alexandria Port Authority includes Alexandria and Dekhila Ports, while Damietta Port Authority includes only one port. The Red Sea Authority consists of Suez, Sharm El Shekh, Red Sea, Safaga, and Petroleum Ports. Finally the SCZone Authority includes six ports namely West Port Said, East Port Said, Al Adabia, Al Arish, Al Tor, and El Sokhna Ports.
The 15 commercial ports have a total of 205 berths. The ports’ maximum capacity reached 184.2 million tons of commodities, 12.4 twenty-feet equivalent units (TEU) of containers, and 6.7 million m2 storage capacity[3].
Storage Capacity million m2 |
Containers Capacity (TEU) | Commodities Capacity (million tons) | No. of Berths | ||||||||
2022 | 2019 | 2022 | 2019 | 2022 | 2019 | 2022 | 2019 | ||||
2.2 | 2 | 3 | 2 | 66 | 65 | 87 | 84 | Alexandria Port Authority | |||
1.1 | 1 | 1.8 | 1 | 33 | 20 | 28 | 23 | Damietta Port Authority | |||
0.6 | 0.47 | 0 | 0 | 25 | 19 | 33 | 33 | Red Sea Ports Authority | |||
2.8 | 2.8 | 7.6 | 4 | 60.2 | 43 | 57 | 55 | SCZone Authority | |||
6.7 | 6.53 | 12.4 | 7 | 184.2 | 147 | 205 | 195 | Total Ports |

Egypt’s Promising Plan to Become Transit Trade Hub
In general, Egypt’s transportation sector has made a substantial contribution to the economy. The sector represented 5.1% of the country’s gross domestic product (GDP) in fiscal year (FY) 2022/2023[1]. In addition, the implemented investments in transport sector accounted for 26.5% of Egypt’s total implemented investments, where private sector made up around 11% of these investments[2].
Transportation denominated the country’s exports of services, hitting $14 billion, and representing 40% of total service exports[3].
Seaports are key player in the international trade scene in Egypt as they are responsible for around 86% of total trade movements into and out of the country[4],[5].
Recognizing the importance to enhance connectivity, Egypt’s Key Strategic Directions for 2024-2030[6], along with its transportation and infrastructure plan, underscore the importance of augmenting the transport sector’s capacity and its contribution to international and regional transport flows.
Pursuing these goals, the Egyptian government is currently adopting an ambitious plan that seeks becoming a central hub for transit trade, attracting investment, boosting economic growth, and strengthening its role in global trade networks. The plan involves leveraging its geographical location and improving its infrastructure and logistics capabilities. By implementing this plan, Egypt aims to streamline the movement of goods through its territory, facilitating trade between Africa, Asia, Europe, and the Middle East[7].
This plan includes [8];
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- Formulate a national transit trade strategy to increase Egypt’s share from 3.7 million containers to 15 million containers.
- Development of at least five Egyptian ports on the Red Sea and the Mediterranean Sea and their transformation into international transit trading centers.
- Increasing the capacity of East Port Said Port to 5 million containers per year in 2030 compared to 3.2 million containers in 2023.
- Increasing the capacity of West Port Said Port to 0.3 million containers per year in 2030 compared to 0.2 million containers in 2023.
- Increasing the capacity of El Sokhna Port to 0.05 million containers per year in 2030 compared to 16,000 containers in 2023.
- Acquiring at least 20% of transit trade in East Mediterranean.
- Strategic partnerships with global shipping companies that own more than 70% of the world’s fleet of container ships.
- Establishment of a High Logistics Council and a logistics regulatory body.
To successfully implement this ambitious plan and achieve the desired goal of boosting its connectivity, the government have to overcome a number of challenges such as[9];
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- Despite improved maritime transport in Egypt, the ports transhipment function is still limited
Most world ports achieve an average ship turnaround time of under two days, with many ports in Asia accomplishing this in less than a day. However, this is not the case in Egypt. One significant bottleneck for the Suez Canal ports is the relatively low level of value-added services available to shipping firms.
In contrast, other transshipment ports are advancing by developing services such as ship repair, value-added logistics, and well-developed feedering and short-sea services. To keep pace, Egyptian transshipment ports must continuously enhance their attractiveness and competitiveness.
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- The need for improved infrastructure planning and prioritization
Strengthen the capacity and coordination across the government for planning and assessing infrastructure priorities to ensure that infrastructure strategies are well integrated with other types of planning such as industrial development strategies and land use plans. For example, infrastructure plans in special economic zones such as the SCZone should be well connected with the hinterland. Achieving this also requires better co-ordination between different branches of government.
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- Limited participation from the private sector
Despite Egypt having a robust regulatory framework for Public-Private Partnerships (PPPs), private sector involvement in the infrastructure sector has remained limited. This is evident in the subpar quality of service provision and the estimated USD 675 billion, equivalent to 5% of GDP until 2040, investment gap required for infrastructure development.
To encourage private sector participation, the government must systematically engage all relevant stakeholders from the early stages of infrastructure planning. This ensures their support and enables the accurate assessment and addressing of their needs, as well as social, economic, environmental, and governance risks, in the contractual arrangements. Additionally, besides removing barriers, implementing appropriate market-based mechanisms is essential to facilitate private investments.
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- The regulatory environment needs to be improved
The government should build a clearer and more transparent regulatory framework governing infrastructure activity. For example, the government needs to clarify the regulatory frameworks for infrastructure investments to provide potential investors with clear, predictable, and consistent policies.
The ongoing tensions in the Red Sea have significantly impacted navigation through the Suez Canal, consequently affecting the connectivity of ports within the SCZone. PLSCI has indicated a decline in the connectivity of key ports such as Port Said, Adabiya, and Sokhna.
To mitigate the current disruptions and prevent future crises, it is imperative for the Egyptian government to focus on promoting transshipment at alternative ports. This can be achieved by developing comprehensive services and enhancing the attractiveness and competitiveness of these ports. Efforts should include infrastructure upgrades, streamlining port operations, and implementing advanced logistics solutions. By doing so, Egypt can ensure the resilience and efficiency of its maritime trade routes despite regional challenges.
[1] MPED. GDP Database. https://mped.gov.eg/GrossDomestic
[2] MPED. Implemented Investments Database. https://mped.gov.eg/Investment/Index?lang=ar
[3] CBE. Monthly Statistical Bulletin. 2023. https://www.cbe.org.eg/-/media/project/cbe/listing/monthly-statistical-bulletin/bulletin/dec/monthly-statistical-bulletin-321.pdf
[4] CAPMAS. Monthly Foreign Trade Bulletin. 2023. https://www.capmas.gov.eg/Pages/Publications.aspx?page_id=5107&Year=23614
[5] GOEIC Data
[6] IDSC. Egypt’s Key Strategic Directions for the Egyptian Economy during Presidential Period (2024-2030). 2024. https://www.idsc.gov.eg/Reports/details/8860
[7] Rabab Sobhy. Transforming Egypt into Global Trade Hub. IDSC. 2023. https://idsc.gov.eg/upload/DocumentLibraryIssues/AttachmentA/8792/Transforming%20Egypt%20into%20Global%20Trade%20Hub%20(1).pdf
[8] IDSC. Egypt’s Key Strategic Directions for the Egyptian Economy during Presidential Period (2024-2030). 2024. https://www.idsc.gov.eg/Reports/details/8860
[9] OECD, Investment Policy Review: Egypt 2020. https://www.oecd-ilibrary.org/sites/fbde3af9-en/index.html?itemId=/content/component/fbde3af9-en
[1] OECD, Investment Policy Review: Egypt 2020. https://www.oecd-ilibrary.org/sites/fbde3af9-en/index.html?itemId=/content/component/fbde3af9-en
[2] UNCTAD, Sustainable maritime and port connectivity for resilient and efficient supply chains in the aftermath of COVID-19 (Phase I). https://unctad.org/project/sustainable-maritime-and-port-connectivity-resilient-and-efficient-supply-chains-aftermath
[3] Munim, Z.H., Schramm, HJ. The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade. 2018. https://jshippingandtrade.springeropen.com/articles/10.1186/s41072-018-0027-0
[4] UNCTAD Handbook of Statistics 2021 – Maritime transport. https://unctad.org/system/files/official-document/tdstat46_FS15_en.pdf
[5] UNCTAD STAT. https://unctadstat.unctad.org/datacentre/dataviewer/US.LSCI
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