The outlook for the Egyptian shipping sector is positive and we forecast a period of growth across the country's ports. The political situation in the country is quiescent following the election of Field Marshall Sisi to the presidency in 2014 and we expect investment to begin to flow into the country once more. Fundamentally, strikes at the country's ports have diminished, and a number of expansions are under way once more. The country benefits from the presence of the Suez Canal, and a recovery in Europe's developed markets - albeit a sluggish one - 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
Suez Canal Will Boost Egyptian Volumes: Throughput at the Suez Canal will remain healthy in 2015, following a strong year in 2014. There was a 6.75% year-on-year rise in revenues to USD5.46bn in 2014, compared to USD5.11bn recorded in 2013, as the waterway benefited from delays to the opening of the Panama Canal expansion. The future is bright, as there is a major plan to expand the Suez Canal, which is moving forward rapidly. The project, that was first announced by President Abdel Fatah al-Sisi in August, has already started construction and has an ambitious completion deadline in 2015. We believe that this USD8.5bn expansion plan is a positive investment for Egypt as it will create jobs in the short-term, while increasing government revenues in the long-term. It will also boost shipping volumes at ports such as East Port Said.
The Egypt Shipping Report has been researched at source and features latest-available data and Business Monitor International (BMI)'s independent forecasting, critically analysing international transport of dry bulk and containers. The report evaluates the global commodities and trade backdrop, alongside in-depth country-specific analysis of trade prospects. The report also contains company profiles covering leading multinational and national shipping companies and analysis of latest industry news, trends and regulatory developments in Egypt.
BMI's Egypt Shipping Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the shipping industry in Egypt.
- Benchmark BMI's independent shipping industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in the Egyptian shipping market.
- Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Exploit the latest competitive intelligence and company SWOTS on your competitors and peers including multinational and national companies.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering shipping, major investments and projects and significant multinational and national company developments.
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of the state's shipping sector, which carefully evaluates the short- and medium-term issues facing the industry.
Analysis of the capacity, terminals and planned development of the major ports in each country, including data on throughput and total tonnage.
Industry Forecast Scenario
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and macroeconomic indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
Major port freight throughput (tonnes/teu); overall freight throughput (teu); total imports (US$bn) and exports (US$bn).
Company profiles include business activities, leading products and services, company strategy, trends and developments and economic performance analysis.