BMI View: We hold a broadly positive view on the Egyptian shipping sector in 2015, expecting the country's economic recovery following years of political unrest - the election of Field Marshall el- Sisi as president in 2014 has introduced a measure of stability not seen since prior to President Hosni Mubarak's ouster in 2011 - to power throughput growth at the country's ports.
Fundamentally, strikes at the country's ports have diminished, and a number of expansions are under way once more, including a new berth to be developed at Damietta. The country benefits from the presence of the Suez Canal, and a recovery in consumer demand in Europe's developed markets - thanks to lower oil prices boosting household spending power - will see volumes through the waterway grow, delivering a boost to Egyptian container-handling facilities near the channel such as East Port Said.
Headline Industry Data
2015 total tonnage throughput at El-Dekheila is forecast to grow by 1.4% to 26.06mn tonnes, and to average 2.0% per annum to 2019.
2015 East Port Said container throughput growth forecast at 2.9% to reach 3.39mn twenty-foot equivalent units (TEUs), and to average 5.4% growth to 2019.
2015 Egyptian trade forecast to grow by 3.2%, and to average growth of 4.3% over the medium term.
Key Industry Trends
Port Investment Bouncing Back: Following the Arab Spring revolution of 2011 which forced President Hosni Mubarak's ouster, and the subsequent political turmoil during President Morsi's short tenure and subsequent ouster, investment into the country's port stalled. Given that many of the facilities were in need of development, this was bad news for the sector. However, under the current relative stability of the presidency of former Field Marshall President el-Sisi, investment is beginning to pick up once more. In March it was reported that the port of Damietta, on the country's Mediterranean coast and a major entry point for Alexandria and cities on the Delta, had...