The Study ON Multimodal Transport and Logistics System OF The Eastern Mediterranean Region AND Master Plan IN The Arab Republic of Egypt

No.
TRANSPORT PLANNING AUTHORITY

MINISTRY OF TRANSPORT
THE ARAB REPUBLIC OF EGYPT
THE STUDY
ON
MULTIMODAL TRANSPORT
AND LOGISTICS SYSTEM
OF
THE EASTERN MEDITERRANEAN REGION
AND
MASTER PLAN
IN
FINAL REPORT
Volume 2
Main Text
AUGUST 2008
JAPAN INTERNATIONAL COOPERATION AGENCY
NIPPON KOEI CO., LTD.

KATAHIRA & ENGINEERS INTERNATIONAL
EGO
JR
08-003
TRANSPORT PLANNING AUTHORITY
MINISTRY OF TRANSPORT
THE STUDY
ON
MULTIMODAL TRANSPORT
AND LOGISTICS SYSTEM
OF
THE EASTERN MEDITERRANEAN REGION
AND
MASTER PLAN
IN
FINAL REPORT
Volume 2
Main Text
AUGUST 2008
JAPAN INTERNATIONAL COOPERATION AGENCY
NIPPON KOEI CO., LTD.

KATAHIRA & ENGINEERS INTERNATIONAL
Exchange Rate:
US$ 1.00 = LE 5.71
(As of June 2007)
PREFACE
In response to the request form the Government of the Arab Republic of Egypt, the Government
of Japan decided to conduct the “Study on Multimodal Transport and Logistics System of the
Eastern Mediterranean Region and Master Plan in the Arab Republic of Egypt“, and entrusted it
to the Japan International Cooperation Agency (JICA).
JICA selected and dispatched a study team headed by Mr. Akihisa Kojima of Nippon Koei from
November 2006 to December 2007. In addition, JICA held the support meetings headed by
Professor Toshinori Nemoto of Hitotsubashi University to provide advises to the Study Team
during the course of the Study in Japan.
The Study Team conducted field surveys, and conducted discussions, data analysis and project
formation together with the officials concerned of the Transport Planning Authority and the
Ministry of Transport as well as other officials. Upon retuning to Japan, the Study Team
prepared this final report.
I hope that this report will contribute to development in the Arab Republic of Egypt, and to the
enhancement of friendly relationship between our two countries.
Finally, I wish to express my sincere appreciation to the officials concerned of the Government
of the Arab Republic of Egypt for their close cooperation extended to the Study Team.
August 2008
Seiichi Nagatsuka
Vice President
Japan International Cooperation Agency
August 2008
Mr. Seiichi Nagatsuka

Vice President
Japan International Cooperation Agency
Letter of Transmittal
Dear Sir,
We are pleased to submit herewith the Final Report of the “Study on Multimodal Transport
and Logistics System of the Eastern Mediterranean Region and Master Plan in the Arab
Republic of Egypt.”
The report compiles all the results of the Study and reflects the advices of the authorities
concerned of the Government of Japan and your agency as well as the comments made by the
counterpart organization i.e. the Transport Planning Authority, the Ministry of Transport and
other authorities concerned in the Arab Republic of Egypt.
The report presents the present and future conditions of the freight logistics for export and
import. It presents the overall plan for the further logistics development of all the
multimodal modal and logistics system: including forwarding activities, custom clearance and
procedure activities. For the newly suggested projects, more than twenty projects are
proposed in addition to the projects that have been already planned by the Government of
Egypt.
We wish to take this opportunity to express our sincere gratitude to your agency and the
Ministry of Foreign Affairs. We also wish to express our deep gratitude to the Transport
Planning Agency and the Ministry of Transport as well as other Government Agencies
concerned in the Arab Republic of Egypt for the cooperation and assistance extended to us
during the Study. We hope this report will contribute to the development of the Arab
Republic of Egypt.
Very truly yours,
Ken Nishino
Team Leader,
Study on Multimodal Transport and Logistics System
of the Eastern Mediterranean Region and Master Plan
in the Arab Republic of Egypt
Location Map
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Realization of Logistics System on Inland Transport Issues
Lack of Container Handling Equipment

Lack of Container Yard
Enhancement of Logistics Industry Large Maintenance Dredging Volume
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Limited Area of Container Yard (Industrial Area: 2,550ha) Gate
Insufficient Length of Breakwater
Regional Ring Road

(Under Construction/Planning)
Example of Logistics Center

Example of Modern
Railcar Double Stacking
(Bremen Logistics Centre) Necessary Programs to Develop
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Forwarding/Trucking Industry
To
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Source: www.freefoto.com
i es
Source: www.big-bremen.de
Damietta Port
Mediterranean Sea P34 Access Channel Upgrade Project
SP2 Study of Numerical Simulation for
Sedimentation Prevention
Port Said Port (West)

R10 Burg El-Arab Access Line P35 Container Yard Expansion Project
Construction Project
Port Said Port (East)
L3 Logistics Center Development Project
SP3 Master Plan Supplemental Study
SP4 Study on Bunkering Service Station
R13 Railway Improvement Project

(Ferdan - Port Said Port East)
R12 10th of Ramadan Direct Access Line

(Bilbeis - 10th of Ramadan)
New Burg El Alab
L2 Logistics Center Development

Project (10th of Ramadan)
Alexandria Port SR1 New Freight Link Study (10th of Ramadan

P27 Container Yard Expansion Project (AICT) – Helwan, Marazip Bridge)
P28 Gantry Cranes Renewal and Additional
RTG Installation Project (Government)
P29 Container Yard Pavement Upgrade Project
(Government)
Dekheila Port
P30 Container Terminal Consolidation Project
P31 Additional Container Yard Construction Project
P32 Additional Breakwater Construction Project
P33 Conveyor System Installation Project
R11 Sadat City Access Line Construction Project
W13 New River Port Construction Project Legend

Railway Project
R9 6th of October Direct Access Line Railway Study
River Port Project
L1 Logistics Center Development Project
(6th of October) Logistics Center Project
Note: Project written by bold face

indicates urgent project.
Project Location Map

THE STUDY ON MULTIMODAL TRANSPORT AND LOGISTICS SYSTEM OF
THE EASTERN MEDITERRANEAN REGION AND MASTER PLAN
FINAL REPORT
The Study on Multimodal Transport and Logistics System

of the Eastern Mediterranean Region
and Master Plan
in the Arab Republic of Egypt
Final Report
Table of Contents
Preface
Letter of Transmittal
Location Map
Holistic Approach to Logistics Enhancement
Project Location Map
Chapter 1 Introduction .............................................................................................. 1-1

1.1 Outline of the JICA Study ........................................................................................... 1-1
1.1.1 Background.................................................................................................... 1-1
1.1.2 Objectives of the JICA Study.......................................................................... 1-2
1.1.3 Study Area ..................................................................................................... 1-2
1.1.4 Data for Quantitative Analysis ........................................................................ 1-2
1.1.5 Overall Schedule of the JICA Study................................................................ 1-4
1.2 Organization and Participants of the JICA Study.......................................................... 1-6
1.2.1 Organization of the JICA Study ...................................................................... 1-6
1.2.2 Participants of the JICA Study ........................................................................ 1-6
1.2.3 Japanese Side ................................................................................................. 1-8
1.3 Major Events............................................................................................................. 1-10
1.3.1 Report Submission ....................................................................................... 1-10
1.3.2 Seminars ...................................................................................................... 1-10
1.3.3 Workshops ....................................................................................................1-11
1.3.4 Participation of Other Seminar ......................................................................1-11
Chapter 2 Role of Logistics in Egypt and Improvement Needs ............................... 2-1

2.1 Industrial Development and Logistics.......................................................................... 2-1
2.1.1 Global Economy and Role of Logistics........................................................... 2-1
2.1.2 Needs for a Logistics System Improvement Strategy in Egypt......................... 2-2
2.1.3 Current Logistics Issues in Egypt.................................................................... 2-3
2.2 Individual Role of Ports in Egypt ................................................................................ 2-8
2.3 Problems of the Greater Cairo Region ......................................................................... 2-9
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FINAL REPORT
Chapter 3 Demand Forecast for Export and Import Freight................................... 3-1

3.1 Industrial Development in Egypt ................................................................................. 3-1
3.1.1 Strategy of Industry Development .................................................................. 3-1
3.1.2 Current Industrial Areas in Egypt.................................................................... 3-3
3.1.3 Future Vision of Industrial Structure............................................................. 3-10
3.2 Socio-economic Framework...................................................................................... 3-13
3.2.1 Population.................................................................................................... 3-13
3.2.2 Industrial Structure....................................................................................... 3-14
3.2.3 Gross Domestic Product (GDP) .................................................................... 3-16
3.3 Freight Demand Forecast for Export and Import........................................................ 3-18
3.3.1 Current Freight Flows and Volumes between Egypt and the World................ 3-19
3.3.2 Current Freight Flows and Volumes in Egypt................................................ 3-24
3.3.3 Future Freight Flows and Volumes for Export and Import in Egypt ............... 3-35
3.3.4 Road Capacity and Transport Demand of Major Roads in 2022 .................... 3-43
3.3.5 Line Capacity and Transport Demand of Major Railway Lines in
2022............................................................................................................. 3-46
3.3.6 Inland Waterway Capacity and Transport Demand in 2022 ........................... 3-52
3.3.7 Freight Handling Capacity of Logistics Center.............................................. 3-53
3.3.8 Impact of Fuel Subsidy Reduction ................................................................ 3-55
Chapter 4 Logistics-related Facilities and Operation: Land Transport .................. 4-1

4.1 Introduction ................................................................................................................ 4-1
4.1.1 Current Trend of Different Transport Modes Sharing ...................................... 4-1
4.1.2 Logistics Stakeholders.................................................................................... 4-2
4.1.3 Governmental Organization Related to Logistics ............................................ 4-3
4.2 Road System ............................................................................................................... 4-5
4.2.1 Truck Operators ............................................................................................. 4-5
4.2.2 Major Freight Routes and Current Facilities.................................................... 4-8
4.2.3 Operation Performance and Efficiency ......................................................... 4-17
4.2.4 Ongoing Road Projects................................................................................. 4-19
4.3 Railway System ........................................................................................................ 4-20
4.3.1 Major Freight Routes and Current Facilities.................................................. 4-20
4.3.3 Ongoing Railway Projects ............................................................................ 4-30
4.4 Inland Waterway Transport System ........................................................................... 4-31
4.4.1 Major Freight Waterways and Current Facilities ........................................... 4-31
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FINAL REPORT
4.4.3 Ongoing Projects.......................................................................................... 4-38

4.5 Dry Ports .................................................................................................................. 4-40
4.5.1 Dry Ports in Egypt........................................................................................ 4-40
4.6 Logistics Issues ......................................................................................................... 4-49
4.6.1 Issues related to the Road System ................................................................. 4-49
4.6.2 Issues related to the Railway System ............................................................ 4-50
4.6.3 Issues related to the IWT System.................................................................. 4-51
4.6.4 Issues on Dry Port ........................................................................................ 4-52
4.7 Countermeasures and Recommendations ................................................................... 4-54
4.7.1 Development of Logistics Centers ................................................................ 4-54
4.7.2 Development of Railway and IWT Logistics System .................................... 4-65
4.7.3 Recommended Project List ........................................................................... 4-72
Chapter 5 Port-related Logistics System................................................................... 5-1

5.1 Sea Transport .............................................................................................................. 5-1
5.1.1 World Sea Transport Trends............................................................................ 5-1
5.1.2 Operation and Performance Efficiency ........................................................... 5-2
5.1.3 Logistics Issues .............................................................................................. 5-9
5.2 Sea Ports in Egypt ..................................................................................................... 5-12
5.2.1 Port Management and Operation in Egypt..................................................... 5-12
5.2.2 Current Facilities .......................................................................................... 5-15
5.2.4 Logistics Issues ............................................................................................ 5-27
5.2.5 Container Handling Cost and Productivity .................................................... 5-33
5.2.6 Existing Development Plans for Future......................................................... 5-37
5.3 Conclusions and Recommendations .......................................................................... 5-39
5.3.1 Port Management and Operation in Egypt..................................................... 5-39
5.3.2 Sea Ports in Egypt ........................................................................................ 5-39
Chapter 6 Customs Clearance System ...................................................................... 6-1

6.1 Introduction ................................................................................................................ 6-1
6.2 Current System and Facilities ...................................................................................... 6-1
6.2.1 Function of Customs ...................................................................................... 6-1
6.2.2 Procedures of International Trade and Logistics Flows.................................... 6-2
6.2.3 Existing Problems in Customs Clearance in Egypt .......................................... 6-4
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FINAL REPORT
6.2.4 Apparent Problems ......................................................................................... 6-5

6.3 Policy Efforts of Customs Authority............................................................................ 6-7
6.3.1 Recent Activities by Egyptian Customs Authority........................................... 6-7
6.3.2 General Assessment........................................................................................ 6-8
6.4 Operation Performance and Efficiencies .................................................................... 6-12
6.4.1 Efficiency Indicator for Egyptian Import Procedure...................................... 6-12
6.4.2 Efficiency Indicator for Egyptian Export Procedure...................................... 6-13
6.4.3 Recent Improvement in Egypt ...................................................................... 6-13
6.5 Steps to Improve Customs Clearance Procedures in Egypt......................................... 6-14
6.5.1 Basic Improvement ...................................................................................... 6-14
6.5.2 Large Scale Improvement ............................................................................. 6-14
6.5.3 Single Window System................................................................................. 6-15
6.6 Conclusion and Recommendation ............................................................................. 6-16
6.6.1 General Conclusion ...................................................................................... 6-16
6.6.2 Recommendations ........................................................................................ 6-17
Chapter 7 Freight Forwarding Industry................................................................... 7-1

7.1 Industry Structure of Freight Forwarding Industry ....................................................... 7-1
7.1.1 Characteristics of Freight Forwarding Industry ............................................... 7-1
7.1.2 Profiles of Major Forwarding Companies ....................................................... 7-7
7.2 Environment of Freight Forwarding Industry..............................................................7-11
7.2.1 Current Logistics Policy and Regulations ......................................................7-11
7.2.2 Egyptian International Freight Forwarding Association (EIFFA)................... 7-16
7.2.3 Institutions for Logistics Related Courses ..................................................... 7-18
7.3 Freight Forwarding Industry Related Issues............................................................... 7-25
7.3.1 Issues for Freight Forwarders ....................................................................... 7-25
7.3.2 Issues on Logistics Policies, Regulations and Logistics Related
Training Courses .......................................................................................... 7-29
7.3.3 Issues on Logistics Infrastructure.................................................................. 7-33
7.4 Countermeasures/Recommendations ......................................................................... 7-37
7.4.1 Countermeasures .......................................................................................... 7-37
7.4.2 Policy Enforcement ...................................................................................... 7-40
iv
FINAL REPORT
Chapter 8 Private Sector Role in Egypt’s Inter-modal Logistics System................. 8-1

8.1 Privatization Process in Egypt ..................................................................................... 8-1
8.1.1 Role of Private Sector..................................................................................... 8-1
8.1.2 PPP Existing Laws and Regulations................................................................ 8-3
8.1.3 Financial Policies ........................................................................................... 8-3
8.1.4 Actual Performance in Private Sector Participation ......................................... 8-4
8.1.5 Assessment of PPP Performance..................................................................... 8-6
8.2 Private Sector Participation in Infrastructure Projects .................................................. 8-8
8.2.1 The Need for PPP........................................................................................... 8-8
8.2.2 Objectives of Introducing PPP........................................................................ 8-8
8.2.3 PPP Structure ................................................................................................. 8-9
8.3 Railway Logistics Projects and Private Sector Finance .............................................. 8-12
8.3.1 Basic Concept .............................................................................................. 8-12
8.3.2 National Railways and Private Sector ........................................................... 8-13
8.3.3 ENR between BOT and PPP......................................................................... 8-13
8.3.4 Foreign Experience of Private Role in Railways ........................................... 8-14
8.4 Freight Railway Network under PPP Scheme ............................................................ 8-17
8.4.1 Conceptual Network..................................................................................... 8-17
8.4.2 Proposed PPP Scheme .................................................................................. 8-17
8.5 Logistics Center (LC) Development under BOT Scheme........................................... 8-24
8.5.1 Legislative Issues ......................................................................................... 8-24
8.5.2 Vision of Inland and Dry Ports Authority (IDPA) .......................................... 8-25
8.5.3 Functions of LC ........................................................................................... 8-26
8.5.4 6th of October LC ......................................................................................... 8-27
8.5.5 Financial Issues ............................................................................................ 8-28
8.5.6 Possible Private Sector Participation (BOT/PPP Scheme) ............................. 8-30
Chapter 9 Logistics Development Strategy in Egypt ................................................ 9-1

9.1 Approaches to Strategy Formulation............................................................................ 9-1
9.1.1 Vision............................................................................................................. 9-1
9.1.2 Mission .......................................................................................................... 9-1
9.1.3 Strategies ....................................................................................................... 9-2
9.2 Strategy for Development of Logistics Infrastructure................................................... 9-5
9.2.1 Strategy 1: Securing International Hub Port Function ..................................... 9-5
9.2.2 Strategy 2: Strengthening Port Facilities for Export/Import Freight ................. 9-6
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FINAL REPORT
9.3 Strategy 3: Facilitate Economic Transport Routes and Modes between Port
and Factory ................................................................................................................. 9-8
9.3.1 Inland Freight Corridor 1: Alexandria Port – Cairo ......................................... 9-8
9.3.2 Inland Freight Corridor 2: Damietta Port - 10th of Ramadan/Cairo ................ 9-12
9.3.3 Inland Freight Corridor 3: Port Said Port (West) - 10th of
Ramadan/Cairo ............................................................................................ 9-15
9.3.4 Inland Freight Corridor 4: Port Said Port (East) - 10th of
Ramadan/Cairo/6th of October ...................................................................... 9-17
9.3.5 Inland Freight Corridor 5: Sokhna Port - 10th of Ramadan/Cairo/6th of
October ........................................................................................................ 9-19
9.3.6 Inland Freight Corridor 6: Qena – Safaga Port .............................................. 9-21
9.3.7 Inland Freight Corridor 7: Upper Egypt – Cairo............................................ 9-21
9.4 Development of Supporting Measures of Supply Chain Management (SMC)............. 9-24
9.4.1 Strategy 4: Speed-up Custom Clearance and Export/Import
Procedure..................................................................................................... 9-24
9.4.2 Strategy 5: Enhancement of Software Aspects: Establishment of
Nation-wide Electronic Data Interchange (EDI) System................................ 9-25
9.4.3 Strategy 6: Rationalization of Logistics Flow - Construction of
Logistics Center/ Dry Port ............................................................................ 9-26
9.4.4 Strategy 7: Enhancement of Forwarding Industry.......................................... 9-30
9.5 Strategy for Human Resource Development .............................................................. 9-32
9.5.1 Strategy 8: Legal and Institutional Arrangement ........................................... 9-32
9.5.2 Strategy 9: Provision of More Training Opportunities ................................... 9-33
9.6 Promotion Policy for Logistics Center/Freight Services of Railway and Inland
Waterway.................................................................................................................. 9-36
9.7 Social and Environmental Consideration ................................................................... 9-40
9.7.1 Legal Process on Social and Environmental Consideration in Egypt ............. 9-40
9.7.2 Social and Environmental Consideration of the Master Plan
Components ................................................................................................. 9-41
9.7.3 Assessment on CO2 Emission by Modal Shift of Freight
Transportation .............................................................................................. 9-43
Chapter 10 Priority Projects and Implementation Program ................................... 10-1

10.1 Approach to Formulate Implementation Program ...................................................... 10-1
10.2 Identification of Logistics Projects and Programs/Studies .......................................... 10-1
10.2.1 Preparation of Initial Project and Program/Study List ................................... 10-1
10.2.2 Preparation of Logistics Project and Program/Study List............................... 10-2
10.3 Evaluation of Logistics Project and Program/Study List .......................................... 10-17
10.3.1 Evaluation Criteria ..................................................................................... 10-17
10.3.2 Assessment of Projects and Programs/Studies............................................. 10-20
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FINAL REPORT
10.4 Implementation Schedule ........................................................................................ 10-23

10.4.1 Confirmation of Budget Envelope for Transport Sector............................... 10-23
10.4.2 Implementation Schedule ........................................................................... 10-23
Chapter 11 Conclusions and Recommendations .......................................................11-1
vii
FINAL REPORT
Appendices
Appendix-1 Interview Surveys

Appendix-2 Industrial Development
Appendix-3 Methodology of Freight Demand Forecast
Appendix-4 Sea Port
Appendix-5 Public Private Partnership (PPP)
Appendix-6 Project Profile
viii
FINAL REPORT
List of Tables
Table 1.2.1 Steering Committee Members ............................................................................. 1-7
Table 1.2.2 Egyptian Counterpart Team Members ................................................................. 1-8
Table 1.2.3 Academic Advisor and JICA Members................................................................ 1-9
Table 1.2.4 JICA Study Team Members................................................................................. 1-9
Table 1.3.1 Report Submission............................................................................................ 1-10
Table 2.1.1 Summary of Preferences in Logistics .................................................................. 2-4
Table 3.1.1 Planned Estimated Growth Rates in the Industrial Sector .................................... 3-2
Table 3.1.2 Export Target ...................................................................................................... 3-2
Table 3.1.3 Category of Industrial Zones ............................................................................... 3-3
Table 3.1.4 Area of Developed Industrial Zone ..................................................................... 3-6
Table 3.1.5 Public Free Zones and Special Economic Industrial Zones .................................. 3-7
Table 3.1.6 Industrial Zones in New Urban Communities...................................................... 3-7
Table 3.1.7 Industrial Zones in Governorates......................................................................... 3-8
Table 3.1.8 Factories in New Urban Communities in 2006 .................................................... 3-9
Table 3.1.9 Major Industry and Product by Governorate...................................................... 3-10
Table 3.1.10 Annual Agricultural Production Quantities to be transported from
Toshka ...............................................................................................................3-11
Table 3.1.11 Forecast of Production in the Four Major Industrial Zones ................................ 3-12
Table 3.2.1 Population of Egypt: Actual and Forecast.......................................................... 3-13
Table 3.2.2 Employment and Sector Share by Governorate in 2005 ..................................... 3-15
Table 3.2.3 List of Governorates with Higher Growth of Manufacturing Sector ................... 3-16
Table 3.2.4 GDP: Actual Performance in the Past................................................................ 3-16
Table 3.3.1 All OD Matrices Prepared in the JICA Study..................................................... 3-18
Table 3.3.2 List of Top 10 Countries of Export and Import Volumes in 2005 ....................... 3-20
Table 3.3.3 List of Top 10 Countries of Export and Import Container Volumes in
2005 ................................................................................................................. 3-21
Table 3.3.4 List of Top 10 Countries of Transhipment Container Volumes via Egypt
in 2005 ............................................................................................................. 3-22
Table 3.3.5 Sub-Region Classification................................................................................. 3-23
Table 3.3.6 Handled Local Cargo(*) at Egyptian Ports in 2005............................................ 3-24
Table 3.3.7 Top 9 Cargos(*1) at Egyptian Ports in 2005 ...................................................... 3-25
Table 3.3.8 Relation between the Handling Types and the Commodity Types in 2005.......... 3-26
Table 3.3.9 Export and Import Volumes by Major Port and Commodity Type in
2005 ................................................................................................................. 3-27
Table 3.3.10 Export and Import Volumes by Transport Mode in 2005.................................... 3-27
Table 3.3.11 Export and Import Volumes(*) in 2022 by Commodity Type ............................. 3-35
Table 3.3.12 Growth Trend of the Cargo Volume in 4 Major Ports: 2004 - 2006 .................... 3-36
Table 3.3.13 Future Growth of Local Cargo Volume by 4 Major Ports................................... 3-36
Table 3.3.14 Modal Share along Alexandria Port and Upper Egypt in 2005 ........................... 3-37
Table 3.3.15 Adjustment of Modal Share along the Damietta Branch in 2022........................ 3-37
Table 3.3.16 Local Cargo Handling Volume(*) by Transport Mode in 2022 and the
Modal Share ..................................................................................................... 3-38
Table 3.3.17 Estimation of Export and Import Container Volumes in 2022 ............................ 3-42
Table 3.3.18 Variables and Their Estimated Values................................................................ 3-44
Table 3.3.19 Capacity Analysis of the Major Road ................................................................ 3-44
Table 3.3.20 Line Capacity and Transport Demand of Railway by Section ............................ 3-47
Table 3.3.21 Alternative Cases of Railway Network.............................................................. 3-49
Table 3.3.22 Total Transport Cost by Case in 2022................................................................ 3-51
Table 3.3.23 Capacity and Transport Demand of Inland Waterway in 2022............................ 3-52
Table 3.3.24 Dimensions of Logistics Centers near Metropolitan Tokyo, Japan ..................... 3-54
Table 3.3.25 Distance between Cairo and Major Ports........................................................... 3-55
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FINAL REPORT
Table 4.1.1 Mode Share of Freight Transport in Egypt........................................................... 4-2

Table 4.1.2 Major Stakeholders and Members in the Logistics System .................................. 4-3
Table 4.2.1 Numbers of Trucks Belonging to Each Cooperative Society ................................ 4-7
Table 4.2.2 Average Daily Traffic (ADT) on Main Road Network ....................................... 4-10
Table 4.2.3 ADT of Major Arterial Highways...................................................................... 4-10
Table 4.2.4 Length and Ratio of Roads by Locations under GARBLT ................................. 4-12
Table 4.2.5 List of Toll Roads in Egypt ............................................................................... 4-12
Table 4.2.6 Programs of CREATS....................................................................................... 4-14
Table 4.2.7 Distances among Major Cities........................................................................... 4-15
Table 4.2.8 Total Number of Registered Heavy Vehicles in Year 2006 ................................. 4-17
Table 4.2.9 Truck Fleet of the Maritime and Land Transport Holding Company .................. 4-18
Table 4.2.10 Volume of Freight Handled by Trucks (2002).................................................... 4-18
Table 4.2.11 Type of Services at International Border Crossings............................................ 4-18
Table 4.2.12 Import & Export Freight Volumes at El-Saloum Port......................................... 4-19
Table 4.3.1 Major Railway Freight Flows to Major Ports by Commodity............................. 4-23
Table 4.3.2 Time of Loading and Unloading Containers to Trains at Major Ports................. 4-25
Table 4.3.3 Example of Actual Travel Time of Freight Train (May 2007) ............................ 4-27
Table 4.3.4 Port to Port Routes (May 2007)......................................................................... 4-27
Table 4.3.5 Number of Locomotives (September 2006)....................................................... 4-28
Table 4.3.6 Characteristics of Freight Wagons (October 2006)............................................. 4-28
Table 4.4.1 Classification of Inland Waterways ................................................................... 4-31
Table 4.4.2 Major River Ports in Egypt ............................................................................... 4-34
Table 4.4.3 Number of Barges Operating in the River Nile (2006)....................................... 4-35
Table 4.4.4 Summary of Waterway Conditions .................................................................... 4-36
Table 4.5.1 List of Dry Ports in Egypt ................................................................................. 4-41
Table 4.5.2 Recommended Improvements for 10th of Ramadan Dry Port Users ................... 4-48
Table 4.6.1 Dry Port Facilities and Services ........................................................................ 4-53
Table 4.7.1 Major advantages of 6th of October and 10th of Ramadan as Location of LC ...... 4-56
Table 4.7.2 Governorates with Dry Port Plans ..................................................................... 4-60
Table 4.7.3 Proposed Function of Logistics Centers ............................................................ 4-61
Table 4.7.4 Logistics Center Evolution................................................................................ 4-61
Table 4.7.5 New Sections and Access Links of the Freight Railway..................................... 4-66
Table 4.7.6 Summary of Recommended Projects & Programs/Studies ................................. 4-72
Table 5.1.1 Major Alliances and Independent Carriers........................................................... 5-3
Table 5.1.2 Container Volume Handled by Major Four Operators.......................................... 5-4
Table 5.1.3 Container Volume of the Major Ports in the East Mediterranean .......................... 5-5
Table 5.1.4 LSCL of Egypt ................................................................................................... 5-6
Table 5.1.5 Number of Vessels passing through the Suez Canal (2004 – 2006) ...................... 5-8
Table 5.1.6 Cargo Volume through Suez Canal (2004 – 2006) ............................................... 5-8
Table 5.1.7 Main Shipping Lines calling at Egyptian Ports (as of 2006)................................. 5-9
Table 5.1.8 Dimensions of Emma Maersk ........................................................................... 5-10
Table 5.1.9 Containerization Ratio in Egyptian Ports (2006)................................................ 5-10
Table 5.2.1 Container Terminal Operators in Egypt ............................................................. 5-14
Table 5.2.2 Port Facilities at Egyptian Container Terminals ................................................. 5-15
Table 5.2.3 Required Berth Depth and Length by Ship Size................................................. 5-16
Table 5.2.4 Container Handling Volume and Transhipment Rate in Each Major Port
(2006)............................................................................................................... 5-17
Table 5.2.5 Cargo Handling Volume in Each Major Port (2006) .......................................... 5-17
Table 5.2.6 Distances between Safaga Port and Neighboring Ports ...................................... 5-26
Table 5.2.7 Comparison of Tariff System between International Standard and
System applied at Egyptian Government Terminals........................................... 5-33
Table 5.2.8 Comparison of Total Charges at Each Egyptian Container Terminal .................. 5-35
Table 5.2.9 Summary of Container Handling Productivity and Quayside Handling
Capacity at Each Terminal ................................................................................ 5-36
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FINAL REPORT
Table 5.2.10 Summary of Future Development Plans for Ports.............................................. 5-38

Table 5.3.1 Share of Container Handling Volume (Export and Import) ................................ 5-40
Table 5.3.2 Preliminary Estimate of Future Terminal Capacity ............................................ 5-40
Table 5.3.3 Summary of Required Functions and Actions at Each Port ................................ 5-48
Table 6.2.1 Trade Facilitation Indicators................................................................................ 6-4
Table 6.3.1 Trading Across Borders in Egypt (1) ................................................................. 6-10
Table 6.3.2 Trading Across Borders in Egypt (2) ..................................................................6-11
Table 7.1.1 Future Plan of Freight Forwarders....................................................................... 7-5
Table 7.1.2 Main Comments/Suggestions for the Government............................................... 7-6
Table 7.1.3 Some Local Major Freight Forwarders (1)........................................................... 7-7
Table 7.1.4 Some Local Major Freight Forwarders (2)........................................................... 7-8
Table 7.1.5 Some Main Foreign Freight Forwarders ............................................................ 7-10
Table 7.2.1 Logistics related Authorities within Ministry of Transport (1).............................7-11
Table 7.2.2 Logistics related Authorities within Ministry of Transport (2)............................ 7-12
Table 7.2.3 Notification of Loads Permitted on the Road Network Instructions ................... 7-14
Table 7.2.4 Some Main Training Courses Conducted by EIFFA .......................................... 7-17
Table 7.2.5 Some Main Courses Conducted by AASTMT ................................................... 7-19
Table 7.2.6 Training Staffs and Training Equipment at PTI.................................................. 7-22
Table 7.2.7 Training Courses Provided by PTI .................................................................... 7-23
Table 7.2.8 Outline of Training Courses Provided by PTI.................................................... 7-23
Table 7.2.9 Outline of Dual Training Program Scheme ...................................................... 7-24
Table 7.3.1 Merits on Introduction of EDI........................................................................... 7-27
Table 7.3.2 Current Regulations for Freight Forwarders & Trucking Companies ................. 7-30
Table 7.3.3 Main Issues on Infrastructure for Freight Forwarder.......................................... 7-33
Table 7.3.4 The List of Truck Terminals in Japan ................................................................ 7-35
Table 7.4.1 Proposed Regulations on Freight Forwarder and Trucking Company................. 7-40
Table 8.1.1 BOT Projects under Ministry of Transport – Maritime Sector.............................. 8-5
Table 8.1.2 BOT/PPP Projects under Ministry of Transport - Road Sector ............................. 8-5
Table 8.2.1 A Simplified Comparison between Different PPP Options................................. 8-10
Table 8.2.2 Risk Allocation ..................................................................................................8-11
Table 8.5.1 Major Logistics Centers in ESCAP Region ....................................................... 8-27
Table 9.3.1 Alexandria Port – Industrial Zones (6th of October, 10th of Ramadan)
Corridor.............................................................................................................9-11
Table 9.3.2 Inland Freight Corridor 2: Damietta Port - 10th of Ramadan/Cairo..................... 9-14
Table 9.3.3 Port Said Port (West) ~ 10th of Ramadan and Cairo Corridor ............................. 9-16
Table 9.3.4 Port Said Port (East) ~ 10th of Ramadan Corridor .............................................. 9-18
Table 9.3.5 Sokhna Port - 10th of Ramadan, Cairo, and 6th of October Corridor.................... 9-20
Table 9.4.1 Qualifications for Forwarding Industry Staff: Japan’s Case ............................... 9-31
Table 9.7.1 Estimated CO2 Emission Decrease by Modal Shift from Truck to
Railway ............................................................................................................ 9-44
Table 10.2.1 Status Classification.......................................................................................... 10-2
Table 10.2.2 Ongoing/Committed Projects (1/2).................................................................... 10-3
Table 10.2.3 Ongoing/Committed Projects (2/2).................................................................... 10-4
Table 10.2.4 Planned/New Projects (1/2)............................................................................... 10-8
Table 10.2.5 Planned/New Projects (2/2)............................................................................... 10-9
Table 10.2.6 Planned/New Programs/Studies ...................................................................... 10-10
Table 10.3.1 Indicators for Project Prioritization ................................................................. 10-19
Table 10.3.2 Indicators for Program/Study Prioritization ..................................................... 10-19
Table 10.3.3 Assessment of Planned/New Projects in Order of Total Score (1/2) ................. 10-20
Table 10.3.4 Assessment of Planned/New Projects in Order of Total Score (2/2) ................. 10-21
Table 10.3.5 Assessment of Planned/New Programs/Studies in Order of Total Score ........... 10-22
Table 10.4.1 Implementation Schedule (1/2) ....................................................................... 10-24
Table 10.4.2 Implementation Schedule (2/2) ....................................................................... 10-25
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FINAL REPORT
List of Figures
Figure 1.1.1 Work Flow of the JICA Study ............................................................................. 1-5
Figure 1.2.1 Organization of the JICA Study........................................................................... 1-6
Figure 2.1.1 Traffic Flows and the 50 Largest Container Ports ................................................ 2-1
Figure 2.2.1 Roles of Ports in Egypt ....................................................................................... 2-8
Figure 2.3.1 Role of Logistics Center ................................................................................... 2-10
Figure 3.1.1 Industrial Zones in Egypt .................................................................................... 3-5
Figure 3.1.2 Area of Developed Industrial Zones .................................................................... 3-6
Figure 3.1.3 Area and Production of Major Industrial Zones ................................................. 3-12
Figure 3.2.1 Number of Employees by Governorate in 2004 ................................................. 3-14
Figure 3.2.2 GDP Growth Rate: Actual Performance and Two Future Scenarios.................... 3-17
Figure 3.3.1 Export and Import Volumes (Unit: Thousand Ton) ............................................ 3-19
Figure 3.3.2 Export and Import Container Volumes (Unit: Thousand TEU)........................... 3-21
Figure 3.3.3 Transhipment Container Volumes (Unit: Thousand TEU) .................................. 3-22
Figure 3.3.4 Transhipment Container Volumes by Sub-Region.............................................. 3-23
Figure 3.3.5 Cement Export Flow in 2005 (Truck)................................................................ 3-29
Figure 3.3.6 Gaseous Hydrocarbon Export & Import Flow in 2005 (Truck) .......................... 3-29
Figure 3.3.7 Phosphates Export Flow in 2005 ....................................................................... 3-30
Figure 3.3.8 Wheat Import Flow in 2005 .............................................................................. 3-31
Figure 3.3.9 Maize Import Flow in 2005 (Truck) .................................................................. 3-31
Figure 3.3.10 Other Basic Chemicals Import Flow in 2005 (Truck)......................................... 3-32
Figure 3.3.11 Current Traffic Volume by Truck....................................................................... 3-33
Figure 3.3.12 Current Traffic Volume by Railway................................................................... 3-34
Figure 3.3.13 Current Traffic Volume by Inland Waterway ..................................................... 3-34
Figure 3.3.14 Future Volume Flow on the Spider Network...................................................... 3-39
Figure 3.3.15 Future Traffic Volume by Truck in 2022............................................................ 3-40
Figure 3.3.16 Future Traffic Volume by Railway in 2022 ........................................................ 3-41
Figure 3.3.17 Future Traffic Volume by Inland Waterway in 2022........................................... 3-41
Figure 3.3.18 Annual Average Daily Traffic in 2006 ............................................................... 3-43
Figure 3.3.19 Comparison of Retail Gasoline Price................................................................. 3-55
Figure 3.3.20 Change of Break Even Distance according to the Subsidy Reduction ................ 3-56
Figure 4.1.1 Share of Freight Transport Modes in Japan.......................................................... 4-1
Figure 4.1.2 Principal Related Inland Transport Logistic Organizations .................................. 4-4
Figure 4.2.1 Classification of Truck Operators........................................................................ 4-5
Figure 4.2.2 Organization Chart of the Holding Company for Maritime and Land
Transport ............................................................................................................ 4-6
Figure 4.2.3 Major Arterial Highways around Cairo ............................................................... 4-8
Figure 4.2.4 New Bypass and Kafr Al-Zayat Bridge along Cairo-Alexandria
Agricultural Highway ......................................................................................... 4-9
Figure 4.2.5 The Ring Road Closing Plans ............................................................................4-11
Figure 4.2.6 General Concept of the Regional Ring Road ......................................................4-11
Figure 4.2.7 Share of Heavy Trucks to Total Traffic.............................................................. 4-15
Figure 4.3.1 Railway Network in Egypt................................................................................ 4-20
Figure 4.3.2 General Layout of ENR Network Showing Double and Single Tracks............... 4-21
Figure 4.3.3 Freight Railway of Egypt Showing Main Freight Lines ..................................... 4-24
Figure 4.3.4 Railway Network Showing Major Port-to-Port Routes for Containers ............... 4-25
Figure 4.3.5 Delay Experienced by Containers via Railway .................................................. 4-26
Figure 4.3.6 Railway Port-to-Port Container Volumes........................................................... 4-29
Figure 4.3.7 Volume of Freight Transported by Railway (1990-2005) ................................... 4-29
Figure 4.4.1 RTA Waterways in Lower Egypt ....................................................................... 4-32
Figure 4.4.2 RTA Waterways in Upper Egypt........................................................................ 4-32
Figure 4.4.3 Plan of River Port Locations ............................................................................. 4-33
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FINAL REPORT
Figure 4.4.4 IWT and Locations of Planned Ports ................................................................. 4-37

Figure 4.4.5 Historical Trend of Volume of Freight Transported by IWT (1998-2006)........... 4-38
Figure 4.5.1 Locations of Operating Dry Ports...................................................................... 4-41
Figure 4.5.2 Annual Volume of Container Throughput at SOSDI Dry Port ............................ 4-43
Figure 4.5.3 Number of Containers Handled at SOSDI Dry Port according to the Port
of Origin........................................................................................................... 4-44
Figure 4.5.4 Annual Volume of Containers at 6th of October Dry Port ................................... 4-46
Figure 4.6.1 Dry Port Concept .............................................................................................. 4-52
Figure 4.7.1 Movement of Trucks between Freight Terminals ............................................... 4-58
Figure 4.7.2 Container Volume for Export and Import per Governorate (2022)...................... 4-59
Figure 4.7.3 Trucks and Containers Flow at the Logistics Center .......................................... 4-62
Figure 4.7.4 Dry Port Layout That Can Be a Part of a Logistics Center or a Stand
Alone Facility ................................................................................................... 4-63
Figure 4.7.5 Value-Added Logistics (VAL) Services of a Logistics Center in a Port
Area ................................................................................................................. 4-65
Figure 4.7.6 Recommended New Sections and Access Links for Freight Railway
Network............................................................................................................ 4-66
Figure 4.7.7 Access Link to 6th of October Industrial Area .................................................... 4-68
Figure 4.7.8 Location of Proposed River Ports for Construction............................................ 4-70
Figure 4.7.9 Location of Athar El-Nabi River Port................................................................ 4-71
Figure 4.7.10 Location of El-Tebeen River Port...................................................................... 4-71
Figure 5.1.1 Trend in World Sea Transport.............................................................................. 5-1
Figure 5.1.2 Comparison of Container Cargo Flows between Europe, North America
and East Asia between 1998 and 2005................................................................. 5-2
Figure 5.1.3 Concept of Hub and Spoke.................................................................................. 5-2
Figure 5.1.4 Container Terminals Operated by Major Four Operators...................................... 5-3
Figure 5.1.5 Major Ports and Shipping Routes in Eastern Mediterranean Area ........................ 5-4
Figure 5.1.6 Number of Vessels Passing through Suez Canal by Vessel Type
(Monthly) ........................................................................................................... 5-7
Figure 5.1.7 Progress of Container Vessels ............................................................................. 5-9
Figure 5.2.1 Egyptian Port Locations.................................................................................... 5-12
Figure 5.2.2 Structure of Administration of Main Container Ports in Egypt ........................... 5-12
Figure 5.2.3 Organization Chart of Maritime Transport Sector .............................................. 5-13
Figure 5.2.4 General Layout of Alexandria Port.................................................................... 5-18
Figure 5.2.5 General Layout of Dekheila Port....................................................................... 5-20
Figure 5.2.6 General Layout of Damietta Port....................................................................... 5-21
Figure 5.2.7 General Layout of Port Said Port (West) ........................................................... 5-22
Figure 5.2.8 Port Said Port (East) ......................................................................................... 5-23
Figure 5.2.9 General Layout of Sokhna Port ......................................................................... 5-25
Figure 5.2.10 Location Map of Safaga Port............................................................................. 5-26
Figure 5.2.11 Government Terminal and AICT Dekheila ........................................................ 5-28
Figure 5.2.12 KGL Terminal (planned) ................................................................................... 5-30
Figure 5.2.13 Port Said West Container Terminal.................................................................... 5-31
Figure 5.2.14 Diagram of “CY/CY” System (International System) ........................................ 5-34
Figure 5.2.15 Diagram of “CY/FO” System at Egyptian Government Container
Terminals.......................................................................................................... 5-34
Figure 5.2.16 Relation between Quayside and Yard Handling Capacities ................................ 5-37
Figure 5.3.1 Alexandria International Container Terminal..................................................... 5-41
Figure 5.3.2 Government Terminal and AICT Dekheila ........................................................ 5-42
Figure 5.3.3 Damietta Port Rehabilitation Plan ..................................................................... 5-43
Figure 5.3.4 Port Said West Container Terminal.................................................................... 5-44
Figure 5.3.5 Master Plan of Port Said Port (East).................................................................. 5-46
Figure 6.2.1 International Trade and Logistics ........................................................................ 6-3
Figure 6.2.2 Too Many Government Agencies ........................................................................ 6-6
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FINAL REPORT
Figure 6.4.1 Efficiency Indicator for Egyptian Import Procedure .......................................... 6-12
Figure 6.4.2 Efficiency Indicator for Egyptian Export Procedure .......................................... 6-13
Figure 6.4.3 Average Time of Release in Export ................................................................... 6-14
Figure 6.5.1 Model of Improved Customs Clearance ............................................................ 6-15
Figure 6.5.2 Single Window System ..................................................................................... 6-16
Figure 7.1.1 Customs Clearance Service................................................................................. 7-2
Figure 7.1.2 Equipment related to Logistics ............................................................................ 7-3
Figure 7.1.3 ICT Application .................................................................................................. 7-4
Figure 7.1.4 Current Measures for Improving Logistics Business............................................ 7-5
Figure 7.3.1 The Conceptual Image of Logistics Strategy ..................................................... 7-25
Figure 7.3.2 How Much the Company Emphasizes Training for Improving Skills of
Employees ........................................................................................................ 7-28
Figure 7.3.3 Partnership Forum on International Logistics Competitiveness in Japan ............ 7-30
Figure 7.3.4 The Qualification System for Logistics in Japan................................................ 7-31
Figure 7.3.5 Intention to Participating Qualification Systems ................................................ 7-32
Figure 7.3.6 Freight Forwarder Related Infrastructure...............................................................33
Figure 7.3.7 Distribution of Truck Terminals in Japan...............................................................34
Figure 7.3.8 Customs and Port Related EDI Systems in Singapore............................................36
Figure 7.4.1 Image of Logistics Related Human Resource Training Courses .............................38
Figure 7.4.2 Main Functions of Logistics Center.......................................................................39
Figure 7.4.3 Example of RFID’s Pilot Project for Exportation...................................................41
Figure 8.2.1 PPP Structure.................................................................................................... 8-10
Figure 8.4.1 Conceptual Freight-Railway Network ............................................................... 8-17
Figure 9.1.1 Formulation of Logistics Master Plan.................................................................. 9-1
Figure 9.2.1 Planning Flows of Port Development .................................................................. 9-6
Figure 9.2.2 Shift of Excessive Demand at Alexandria Port to Other Ports .............................. 9-7
Figure 9.2.3 Role Sharing among Main Ports.......................................................................... 9-7
Figure 9.3.1 Planning Diagram for Inland Freight Corridor 1: Alexandria Port –
Cairo .................................................................................................................. 9-8
Figure 9.3.2 Planning Diagram for Inland Freight Corridor 2: Damietta Port - 10th of
Ramadan/Cairo................................................................................................. 9-12
Figure 9.3.3 Planning Diagram for Inland Freight Corridor 3: Port Said Port (West) -
10th of Ramadan/Cairo ...................................................................................... 9-15
Figure 9.3.4 Planning Diagram for Port Said Port (East) – 10th of Ramadan Corridor ............ 9-17
Figure 9.3.5 Planning Diagram for Sokhna Port - 10th of Ramadan, Cairo, and 6th of
October Corridor .............................................................................................. 9-19
Figure 9.7.1 EIA System and Application Processing Flow ................................................... 9-41
Figure 10.2.1 Framework for Identification of Logistics Projects & Programs/Studies ............ 10-1
Figure 10.2.2 Location Map of Ongoing/Committed Projects in Nile Delta............................. 10-5
Figure 10.2.3 Location Map of Ongoing/Committed Projects in Upper Egypt......................... 10-6
Figure 10.2.4 Location Map of Planned/New Projects in Nile Delta.......................................10-11
Figure 10.2.5 Location Map of Planned/New Projects for Upper Egypt ................................ 10-12
Figure 10.2.6 Location Map of Planned/New Projects for Maritime Sector (Nile Delta)........ 10-13
Figure 10.2.7 Location Map of Planned/New Projects for Maritime Sector (Upper
Egypt) ............................................................................................................ 10-13
Figure 10.2.8 Location Map of Planned/New Projects for Road and Railway Sectors
(Nile Delta)..................................................................................................... 10-14
Figure 10.2.9 Location Map of Planned/New Projects for Road and Railway Sectors
(Upper Egypt)................................................................................................. 10-14
Figure 10.2.10 Location Map of Planned/New Projects for IWT Sector (Nile Delta) ............... 10-15
Figure 10.2.11 Location Map of Planned/New Projects for IWT Sector (Upper Egypt) ........... 10-15
Figure 10.2.12 Location Map of Planned/New Projects for Dry Port and Logistics
Center (Nile Delta) ......................................................................................... 10-16
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FINAL REPORT
Figure 10.2.13 Location Map of Planned/New Projects for Dry Port and Logistics
Center (Upper Egypt)...................................................................................... 10-16
Figure 10.4.1 Logistics Corridor........................................................................................... 10-23
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FINAL REPORT
Abbreviations
A/N : Arrival Notice
AADT : Annual Average Daily Traffic
AASTMT : Arab Academy of Science Technology & Maritime Transport
ACCHC : Alexandria Container & Cargo Handling Company
ACTF : Assistance for Customs and Trade Facilitation
ADT : Average Daily Traffic
AEI : Automatic Equipment Identification
AGADIR : Agreement on the Establishment of a Free Trade Area between the Arab
Mediterranean Countries
AIAE : African Institute for Applied Economics
AICT : Alexandria International Container Terminals
APA : Alexandria Port Authority
APL : American President Lines
APMT : AP Mollar Terminals
ASEAN : Association of Southeast Asian Nations
AVI : Automatic Vehicle Identification
AWB : Air Way Bill
B/L : Bill of Lading
BIMCO : Baltic and International Maritime Council
BOO : Build-Own-Operate
BOOT : Build-Own-Operate-Transfer
BOT : Build-Operate-Transfer
BRICs : Brazil, Russia, India and China
CAPMAS : Central Agency for Public Mobilization and Statistics
CBD : Central Business District
CFS : Container Freight Station
CGM : Compagnie Generale Maritime
CHC : Container Handling Charge
CKYH : COSCO, K Line, Yang Ming Line and Hanjin Shipping
CMA : Compagnie Maritime d'Affretement
COMESA : Common Market for East and South Africa
COSCO : China Ocean Shipping Company
CPI : Consumer Price Index
CPLP : Comprehensive Program of Logistics Policies
CREATS : Cairo Regional Area Transportation Study
CRM : Customer Relationship Management
CY : Container Yard
CY/CY : From container yard to container yard (one of freight system)
CY/FO : From container yard to the quay (one of freight system)
D/O : Delivery Order
D/R : Dock Receipt
DBFO : Design Build Finance Operate
DF/R : Draft Final Report
DP : Dry Port
DPA : Damietta Port Authority
DPW : Dubai Port World
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FINAL REPORT
DW : Dwell Time
DWT : Dead Weight Tonnage
E/D : Export Declaration
E/L : Export License
EAIS : Egyptian Automatic Identification System
ECA : Egyptian Customs Authority
ECES : Egyptian Center for Economic Studies
ECOM : Electronic Commerce Promotion Council
ECR : Efficient Consumer Response
EDI : Electronic Data Interchange
EEPC : Egyptian Export Promotion Center
EIFFA : Egyptian International Freight Forwarding Association
EMDB : Egyptian Maritime Data Bank
ENC : Electronic Navigational Chart
ENIT : Egyptian National Institute of Transport
ENLP : Egyptian National Logistics Platform
ENR : Egyptian National Railways
EOJ : Embassy of Japan
EOS : Electronic Order System
ERP : Enterprise Resource Planning
ESCAP : Economic and Social Development in Asia and the Pacific
EU : European Union
F/R : Final Report
FCL : Full Container Load
FDI : Foreign Direct Investment
FIATA : International Federation of Freight Forwarders Association
FO : Free Out
FTA : Free Trade Area
FTZ : Free Trade Zone
GAFI : General Authority for Investment and Free Zones
GARBLT : General Authority for Roads, Bridges and Land Transport
GATT : General Agreement on Tariffs and Trade
GCR : Greater Cairo Region
GDP : Gross Domestic Product
GIS : Geographic Information System
GOE : Government of Egypt
GOEIC : General Organization for Export and Import Control
GOPP : General Organization for Physical Planning
GPRS : General Packet Radio Service
GPS : Global Positioning System
GS : Ground Slots
GTZ : German Agency for Technical Cooperation
HC : Holding Company
HPH : Hutchison Port Holdings
HS : Harmonized Commodity Description and Coding System
I/D : Import Declaration
I/L : Import License
I/P : Insurance Policy
I/V : Invoice
IATA : International Air Transport Association
IC Tag : Integrated Circuit Tag
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FINAL REPORT
IC/R : Inception Report

ICD : Inland Clearance Depot
ICT : Information and Communication Technology
IDA : Industrial Development Authority
IDPA : Inland and Dry Ports Authority
IITL : Institute of International Transport & Logistics
IMC : Industrial Modernization Center
IMF : International Monetary Fund
IMMTA : International Multimodal Transport Association
ISO : International Standard Organization
IT : Information Technology
IT/R : Interim Report
ITS : Intelligent Transport Systems
ITT : Invitation to Tender
IWT : Inland Waterway Transport
JBIC : Japan Bank for International Cooperation
JETRO : Japan External Trade Organization
JICA : Japan International Cooperation Agency
JILS : Japan Institute of Logistics Systems
JIT : Just-In-Time
JNR : Japan National Railways
JR : Japan Railway
JRS : Japan Railway Standards
JTA : Japan Trucking Association
KGL : Kuwait Gulf Link Ports International
L/C : Letter of Credit
LC : Logistic Center
LCL : Less than Container Load
LNG : Liquefied Natural Gas
LOA : Length Over All
LPDPA : Land Ports and Dry Ports Authority
LSCI : Liner Shipping Connectivity Index
M/M : Minutes of Meeting
MCIT : Ministry of Communications and Information Technology
MCT : Medcenter Container Terminal
MEA : Metropolitan Expressway Authority
METI : Ministry of Economy, Trade and Industry Japan
MHUUC : Ministry of Housing Utilities and Urban Communities
MIS : Management Information System
MISC : Malaysia International Shipping Corporation
MITI : Ministry of International Trade and Industry
MLIT : Ministry of Land, Infrastructure and Transport Japan
MOE : Ministry of Education
MOF : Ministry of Finance
MOI : Ministry of Investment
MOT : Ministry of Transport
MSC : Mediterranean Shipping Company
MVA : Manufacturing Value Added
NORAD : Norwegian Agency for Development Cooperation
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FINAL REPORT
NSA : Norwegian Shipping Academy

NTB : Non Tariff Barriers
NVOCC : Non Vessel Operating Common Carrier
NYK : Nippon Yusen Kaisha
OCDI : Overseas Coastal Area Development Institute of Japan
OD : Origin-Destination
ODA : Official Development Assistance
OECD : Organization for Economic Cooperation and Development
OHSAS : Occupational Health and Safety Assessment System
P.S.C.C.H. Co. : Port Said Containers & Cargo Handling Company
P/L : Packing List
PAFTA : Pan Arab Free Trade Area
PCSU : Privatization Coordination Support Unit
PCU : Passenger Car Unit
PFI : Private Finance Initiative
PIL : Pacific International Lines
POP : P&O Ports
PPI : Port Performance Indicators
PPI : Private Participation in Infrastructure
PPP : Public Private Partnership
PQ : Pre-Qualification
PR/R : Progress Report
PSPA : Port Said Port Authority
PTI : Port Training Institute
QIZ : Qualifying Industrial Zones
QR : Quick Response
RDI : Radio Data Interchange
RFID : Radio Frequency Identification Data
RMG : Rail Mounted Gantry Crane
RTA : River Transport Authority
RTG : Rubber Tired Gantry Crane
S/W : Scope of Works
SC : Steering Committee
SCCT : Suez Canal Container Terminal
SCM : Supply Chain Management
SMEs : Small & Medium Enterprises
SOSDI : 6th of October Storage & Distribution Co. SAE
SPDC : Sokhna Port Development Company
SPV : Special Purpose Vehicle
SUMED : Suez-Mediterranean Pipeline
TEU : Twenty Foot Equivalent Unit
THC : Terminal Handling Charge
TIFA : Egypt-USA Trade and Investment Framework Agreement
TPA : Transport Planning Authority
TSS : Technical Secondary School
UAE : United Arab Emirates
UASC : United Arab Shipping Co.
UHF : Ultra High Frequency
UK : United Kingdom
UN : United Nations
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FINAL REPORT
UNCITRAL : United Nations Commission on International Trade Law

UNCTAD : United Nations Conference on Trade and Development
UNDP : United Nations Development Programme
USA : United States of America
USAID : United States Agency for International Development
USD : United States Dollar
USTR : United States Trade Representative
V/C : Transport Volume / Capacity Ratio
VAL : Value-added Logistics
VAN : Value Added Network
VEH : Vehicle
VOC : Vehicle Operating Cost
W/B : Weigh Bill
WCO : World Customs Organization
WDI : World Development Indicators
WEO : World Economic Outlook
WG : Working Group
WTO : World Trade Organization
XML : Extensive Make-up Language
ZAL : Zona de Actividades Logísticas
xx
Chapter 1
Introduction
FINAL REPORT
Chapter 1 Introduction
1.1 Outline of the JICA Study

1.1.1 Background
In Egypt, industry and trade are the major factors determining the social and economic
development of the nation, and their promotion is a focal task for the nation.
The Government of Egypt clearly sets the basic national strategy to promote its industries by
strengthening trade linkages with the EU and other regions in the world, and revised a
“Egypt-EU Cooperation Agreement” many times during the period 1978 ~ 2001. Egypt has
replaced it with a new “Egypt-EU Partnership Agreement” in 2001 (effective in 2004), seeking
more valid assurance of market access to the large EU market. This policy also targets to
raise the status of the Egyptian economy in the surrounding countries in the Eastern
Mediterranean region and the African region. This process reflects a deep involvement of the
Egyptian economy in the international free market. Egyptian products face severe
competition in quality on the international market, and the exports of the materials/products are
also ruthlessly assessed in terms of price competitiveness and timely delivery in the market.
Egypt also has to procure industrial materials from foreign companies wherever they are
located in the world, at the best timing for the production. Therefore the total lead-time, i.e.,
the period of time that it takes for goods to be delivered from the time of order, should be short
and a delivery should be punctual. What is more, cost is crucial determinant in selecting
trade partners. In this expanding globalization process, there is now a common awareness
that an international logistics system of freight is a key factor for companies to obtain a
comparative advantage in international trade.
However, the existing transport development plans in Egypt have been drawn up
independently by mode: maritime, road, railway, and inland waterway, resulting in insufficient
intermodal connectivity and low efficiency of the system as a whole for the logistics of
export/import freight. Comprehensive and intermodal solutions to optimize the logistics
flows had not been built into the transport plans themselves. Furthermore, all those studies
(except for inland waterways) were conducted more than ten (10) years ago, and are now so
out-dated that their analytical frameworks are hardly applicable to today’s dynamically
developing industries. Thus, Egypt needs to urgently prepare a comprehensive logistics
development plan to fulfill current logistics needs and to reflect the change in freight traffic
volume taking place now and in the future.
Under this background, the Government of Egypt requested the Government of Japan to
formulate a development strategy for a multimodal transport and logistics system. It includes
a wide-range of fields such as transport system logistics, improvements to inter-modal facilities,
and the role of public administration. This also includes highlighting potential opportunities
for public-private partnerships (PPP).
In response to the request, the Government of Japan decided to carry out “The Study on
Multimodal Transport and Logistics System of the Eastern Mediterranean Region in the Arab
Republic of Egypt” (hereinafter referred to as “the JICA Study”), and entrusted its execution to
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the Japan International Cooperation Agency (JICA), the official agency responsible for the
implementation of technical cooperation programs by the Government of Japan. After
conducting two preparatory studies, JICA appointed a joint venture of Nippon Koei (NK) and
Katahira & Engineers International (KEI) as the JICA Study Team for the JICA Study. The
JICA Study Team commenced the JICA Study in Egypt in November 2006.
1.1.2 Objectives of the JICA Study

Objectives of the JICA Study are twofold, which are:
(1) Superior Objective

To formulate a logistics development master plan in order to promote Egyptian export and
import industries and foreign direct investment in Egypt, and consequently contribute to
raising the standard of living of Egyptian people.
(2) Objectives
- To disseminate the concept of logistics in Egypt, and to set logistics as one of the
fundamental strategies to be fulfilled in transport development policies and industrial
development policies,
- To propose a master plan for multimodal transportation and logistics systems for
Egypt, covering plans/projects concerned with public administration development for
logistics planning, multimodal logistics system development, infrastructure
development and its operation/maintenance, logistics industry promotion, legislative
system, and customs clearance system, and
- To propose the order of priority for proposed plans/projects of the multimodal
transport and logistics systems in consideration of their effects on export-industry
promotion and foreign direct investment.
The analytical focus therefore falls on the flows of export/import freight in/around Egypt,
and the JICA Study does not have a focal attention on the general domestic freight flows
that are irrelevant to foreign trade.
Transport sectors that the JICA Study covers are maritime, railway, road, and inland
waterway sectors, and the aviation sector and the pipe line are out of the scope of the JICA
Study.
1.1.3 Study Area

The study area includes the whole of Egypt (including the Red Sea Coast and its hinterlands),
and other countries around the Eastern Mediterranean Sea, for the collection of necessary
maritime data only.
1.1.4 Data for Quantitative Analysis
The JICA Study is designed to prepare a logistics master plan with a focus on the
export/import industries. The JICA Study Team collected all the useful data to estimate the
present and future OD data, and all the demand forecast works had been conducted within a
framework of the data successfully collected, such as CAPMAS, Egyptian Maritime Data
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Bank (EMDB) and the reports of previously conducted studies. In spite of great efforts in
creating these databases, they are not necessarily useful for the specific purpose of the JICA
Study to identify the pattern of domestic flows (origins and destinations) by export/import
commodity and their volumes. Most comprehensive study in this field entitled “The study on
the Transportation System and the National Road Transportation Master Plan” (JICA, 1993) is
too old and outdated to reflect current dynamic economic development in Egypt, and had not
distinguished the export/import freights from domestic freights. Even a current study entitled
“A Study on the Development of the Master Plan for Freight Organization at National Level”
(TPA, 2005) focused on the domestic freight alone.
Date that the JICA Study Team utilized, are explained below:
(1) Export and import volumes by commodity type

There were two available data for the export and import volumes in Egypt: 1) Statistical
Yearbook 2005, Egyptian maritime Data Bank (EMDB), and 2) a time series data (1997 –
2006) obtained from Central Agency of Public Mobilisation and Statistics (CAPMAS).
The export and import volumes at each port in 2005 were only available in the data of
EMDB while the time series data was only available in the data of CAPMAS. The
export and import volumes of both data were not necessarily consistent with each other.
Therefore, the data of EMDB was used for the base data of the current export and import
volumes (2005) at each port, while the data of CAPMAS was used for the trend analysis of
each commodity type.
(2) Export and import volumes by handling type
The export and import volumes at each port for the past three years were obtained in the
website of Maritime Transport Sector. The data were utilized to understand the present
port situation and to analyze the containerization ratio in the logistics issues.
(3) Export and import volumes by commodity type by transport mode by origin and
destination in accordance with the zoning system consisted of 30 zones covering
Egypt’s region and 12 zones for ports and borders (total 42 zones)
Regarding railway and inland waterway, the freight movement data were obtained from
Egypt National Railways (ENR) and River Transport Authority (RTA), respectively. For
freight movement by truck, there was no available data that could identify the origins of
exported commodities and destinations of imported commodities. However, production
and consumption data by commodity type in each zone were obtained from “A Study on
the Development of the Master Plan for Freight Organization at National Level (Technical
Consultation Bureau, June 2005)”. They were OD matrices for internal freight
movement in Egypt. The obtained production data included not only volume for export
but also that for domestic consumption, while the obtained consumption data included not
only volume for import but also that from domestic production. Therefore, it was
necessary to separate the domestic freight movement and the freight movement related to
export/import.
The JICA Study Team conducted a supplementary data collection by means of interview
survey in the course of the JICA Study. This supplementary survey would contribute to
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clarify the features and deficiencies of current logistics systems; however, it was also apparent
that answers from each manufacturing company are suffering from the deficiency in
quality/accuracy because private manufacturing companies are not in favor of information
disclosures.
For these reasons, the projects proposed in this master plan require further re-assessment in
scale determination and its quantitative impacts of the proposed projects; however, this first
study for logistics development (the JICA Study) surely identifies the necessary projects and
priority of each project which is backed up by substantial analysis and discussion based on the
newly acquired data and information. Further data compilation and re-assessment of the
logistics patterns and volume are useful in the near future.
1.1.5 Overall Schedule of the JICA Study
The JICA Study was commenced in the middle of November 2006. The JICA Study Team
produced and submitted the Inception Report to the Transport Planning Authority (TPA),
Ministry of Transport in November 2006. The JICA Study had been conducted since that
time in accordance with the workflow illustrated in Figure 1.1.1.
In February 2007, the JICA Study Team produced and submitted the Interim Report, which
deals with the outcome of the JICA Study from November 2006 to February 2007.
In April 2007, the JICA Study Team, additionally, submitted the Modified Interim Report,
which contains the preliminary findings of the interview surveys.
On the basis of the results of the interview surveys and logistics issues, the JICA Study Team
focused on the supplemental data collection and formulation of logistics development strategy.
In August 2007, the JICA Study Team prepared the Progress Report, which deals with effective
countermeasures to current logistics bottlenecks and the progress of the development strategy.
In November 2007, the JICA Study Team prepared the Draft Final Report, which contains the
“Formulation of Multimodal Transport and Logistics Development Plan”. A multimodal
logistics strategy and master plan are presented with various recommendations on necessary
facilities, legislation arrangement programs, human resource development plans, as well as
implementation programs. In February 2008, the JICA Study Team, additionally, submitted the
Revised Draft Final Report, which reflects comments from the Steering Committee.
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Report/
Year/
Study Item Workshop/
Month
Seminar
Task1: Preparatory Work

[1-1] Collection of Relevant Data/information
-2006- [1-2] Establishment of Study Policy
November
Preparation of Inception Report
IC/R
Submission and Discussion of Inception Report
Seminar
December
Task2: Data Collection and Evaluation of Current Situation of Logistics
and Logistics Related Infrastructure
- 2007 - [2-1] Review of Existing Development Plans and Prior Plans
January [2-2] Study of the Donors’ Cooperation in Logistics
[2-3] Survey and Analysis of Current Condition of Logistics
[2-4] Analysis of Bottleneck on Logistics
February
Submission and Discussion of Interim Report IT/R
March
Submission of Modified Interim Report Workshop
April
Task3: Formulation of Future Logistics Growth Scenarios

[3-1] Zoning and projection of Socio-economic Framework
May [3-2] Forecasting Future Freight Traffic Generation/attraction
[3-3] Projection of Future Logistics Routes and Modes
June [3-4] Analysis of Bottleneck on Logistics
[3-5] Comparison of Countermeasures to Bottlenecks
[3-6] Setting up Future Logistics Growth Scenario
July
PR/R
Submission and Discussion of Progress Report
August Workshop
Task4: Formulation of Multimodal Transport and Logistics Development Plan

September [4-1] Setting up Principle and Objectives of Logistics Development Plan
[4-2] Formulation of Strategic Logistics Development Plan
[4-3] Recommendation of Logistics Related Infrastructure Development Plan
and Selection of the Priority Projects
October
November Submission and Discussion of Draft Final Report DF/R

Seminar
- 2008 -
January
February Submission of Revised Draft Final Report Revised

DF/R
March
April
May
June
July
August Submission of Final Report F/R
Source: JICA Study Team

Figure 1.1.1 Work Flow of the JICA Study
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1.2 Organization and Participants of the JICA Study

1.2.1 Organization of the JICA Study
The JICA Study was carried out by the JICA Study Team in collaboration with the Egyptian
Counterpart Team nominated by the Transport Planning Authority. The Steering Committee
was set up for the entire duration of the JICA Study to discuss each report. The organization
of the JICA Study is illustrated in Figure 1.2.1.
Ministry of Transport,
Advisor JICA Transport Planning
Authority
Steering
Committee
Study Executing Body
JICA Study Team Counterpart Team

Figure 1.2.1 Organization of the JICA Study
1.2.2 Participants of the JICA Study

The members of Egyptian side who participated in the JICA Study are listed below:
(1) Steering Committee
The Egyptian side has formulated a Steering Committee to supervise the JICA Study.
The Steering Committee is composed of twelve (12) members from the Egyptian
authorities, universities and companies chaired by the Vice Chairman, TPA as shown in
Table 1.2.1. The Steering Committee meeting was held at the time of each report
submission. Each discussion was compiled as “Minutes of Meeting”.
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Table 1.2.1 Steering Committee Members

No Role Name Position
1 Chairman Eng. Hassan Selim Vice Chairman, TPA
2 Member Mr. Galal Abuel Fotouh Chairman, Customs Authority
3 Member Dr. Ismail Mubarak Expert, Marine Transportation
4 Member Prof. Dr. Mohamed Aly Ibrahim Head of Department of International Transport
and Logistics, Arab Academy
5 Member Prof. Dr. Omar Abdel Hamid Professor of International Transportation, Faculty
Salman of Commerce, Helwan University
6 Member Ms. Fatma Mohamed Hassan Head of the Central Department for Technical
Affairs, TPA
7 Member Ms. Azza Ahmed Ghanem Head of the Central Department for Economic
Affairs, TPA
8 Member Ms. Nehad Mohamed Badra General Manager of Ports Affairs, Maritime
Transport Sector
9 Member Mr. Mohamed Hatem Ezzat General Manager, Holding Company for
Maritime and Land Transport
10 Member Dr. Nabil Abdel Fattah Sehsah Transport Consultant
11 Member Mr. Unsi Fahim Advisor, Ministry of Transport
12 Coordinator Mr. Alaa Moustafa Kamel Director, Technical Office, Ministry of Transport
(2) Counterpart Team

The Egyptian Counterpart Team was organized by governmental officers from fields
related to logistics as shown in Table 1.2.2. Weekly meetings were held to discuss study
methods and the participation in actual study works by the JICA Study Team and the
Egyptian Counterpart Team. In addition, a pairing system was adopted to promote
further work collaborations between the JICA Study Team and the Egyptian Counterpart
Team (mainly TPA staff). A pairing system (where one member of the JICA Study Team
and one counterpart always work together) was introduced from April 2007. The pairing
system functioned well for executing data collection and specific task/analysis in depth,
and in promoting technology transfer.
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Table 1.2.2 Egyptian Counterpart Team Members

No Name Position
1 Eng. Hassan Selim Vice Chairman, TPA
2 Ms. Azza Ahmed Ghanem Director of Economic Affairs, TPA
3 Eng. Amr Foud Mahmoud Douarah Planning General Manager, TPA
4 Eng. Samy Samouil Morkous Chief Engineer, TPA
5 Mr. Ayman Ahmed Abd El-Tawab Rezk Economic Affairs Expert, TPA
6 Mr. Ahmed El-Sayed Saleh Attah Allah Statistics Affairs Expert, TPA
7 Eng. Mona Mohamed Kotb Senior IT, TPA
8 Mr. Ali Ibrahim Mohamed Senior IT, TPA
9 Mr. Mohamed Abdel-Sabour El-Ghandor Senior Economist, TPA
10 Mr. Amged Abdel Alim Senior IT, TPA
Land Transport Planning General Manager,
11 Eng. Abd El-Fattah Enany
GARBLT
Merchandise Transport Advisor, Commercial
12 Eng. Ashraf El-Sebaei
Dept, ENR
13 Mr. Samir Ahmed Hgameis Maritime Transport Sector
14 Mr. Kamal Al Bandari Maritime Transport Sector
Inspection General Manager, Land Ports and Dry
15 General Abdel El-Rahman El-Feky
Ports Authority
16 Mr. Osama Mouhamed Abd El-Menieem General Manager, GOEIC
General Manager, Holding Co. for Maritime &
17 Mr. M Hatem E. Abou Mostafa
Land Transport
18 General. Adel El-Kady Port Police Dept, Ministry of Interior
1.2.3 Japanese Side

(1) JICA
The JICA Study was supervised by the JICA Egypt Office and supported by an academic
advisor and the JICA staff as shown in Table 1.2.3.
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Table 1.2.3 Academic Advisor and JICA Members

No Name Position
1 Dr. Toshinori NEMOTO (advisor) Professor, Graduate School, of Commerce and
Management, Hitotsubashi University
2 Mr. Katsuhiko OZAWA Resident Representative, JICA Egypt Office
3 Mr. Masakatsu KOMORI Deputy Resident Representative, JICA Egypt
Office
4 Mr. Kenshiro TANAKA Assistant Resident Representative, JICA
Egypt Office
5 Mr. Osamu TANAKA Assistant Resident Representative, JICA
Egypt Office
6 Dr. Ashraf M. El-Abd Project Officer, JICA Egypt Office
7 Mr. Hideo MIYAMOTO (up to March 2007) Group Director, JICA Head quarters
8 Mr. Tomiaki ITO (from April 2007) Group Director, JICA Head quarters
9 Mr. Chikahiro MASUDA (up to October Team Director, JICA Head quarters
2007)
10 Mr. Tomoyuki NAITO (from October 2007) Team Director, JICA Head quarters
11 Mr. Nobuhiro KAWATANI (up to June 2007) Project Coordinator, JICA Head quarters
12 Mr. Makoto KANAGAWA (from July 2007) Project Coordinator, JICA Head quarters
(2) JICA Study Team

The JICA Study was conducted by the JICA Study Team, organized by JICA, which is
composed of thirteen members as shown in Table 1.2.4.
Table 1.2.4 JICA Study Team Members

No Name Position
1 Mr. Akihisa KOJIMA (up to May 2008)
Team Leader/Intermodal Logistics Plan
2 Mr. Ken NISHINO (from June 2008)
3 Mr. Takeharu KOBA Demand Forecast/ Transport Plan
4 Mr. Nobuyuki IINUMA Logistics Infrastructure Plan
(Sea Transport & Port)
5 Dr. Ahmed El Hakim Logistics Infrastructure Plan
(Inland Transport)
6 Mr. Satoru NISHINO (up to March 2007) Administration & Operation Plan
7 Mr. Hiydeya SAKURAI (from April 2007) (Sea Transport & Port)
8 Dr. Nashreen G. Sinarimbo Administration & Operation Plan
(Inland Transport)
9 Dr. Lim Pou Soon Forwarding Industry Plan
10 Mr. Teruo KAWAMURA Logistics Laws & Customs
11 Dr. Asaichi MIYAKAWA Logistics Industry Promotion/Policy
12 Dr. Hani Abdel Halim Privatization & PPP
13 Dr. Yoji TAKAHASHI Logistics System
14 Mr. Koichi ARAKAWA Logistics Survey/ Demand Analysis/
Administrator
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1.3 Major Events

1.3.1 Report Submission
Reports were submitted in accordance with the following schedule:
Table 1.3.1 Report Submission
No. Report Timing of Submission
1. Inception Report November 2006
2. Interim Report February 2007
3. Modified Interim Report April 2007
4. Progress Report August 2007
5. Draft Final Report November 2007
6 Revised Draft Final Report February 2008
7. Final Report August 2008
1.3.2 Seminars
The JICA Study Team held the first seminar at the Egyptian National Institute of Transport
(ENIT, Nasr City, Cairo) on 10 December 2006. The main purposes were as follows:
- To raise public awareness on the necessity of logistics improvement,
- To promote further communication among logistics related government offices,
private companies, and the JICA Study Team, and
- To develop the opportunity to co-work on logistics improvement in Egypt.
At the beginning of the seminar, a video of a TV program was shown to explain supply chain
management (SCM), identify common logistics issues (such as “time” being the crucial
element in most cases), and the requirements to cope with the customers’ needs. This
highlights that the “just-in-time” delivery system is the most important element in SCM.
This concise and clear-cut TV program
was followed by four (4) presentations: the
first one providing a detailed explanation
of typical logistics flow and necessary
facilities/equipment, and the second one
clarifying the flow and necessary
procedures of modern custom clearance,
which in many cases are the most serious
obstacles in international logistics. Both
drew attention to bottleneck issues in
actual international logistics systems.
Photo of the First Seminar
Thirdly, Sokhna Port was presented as a
very successful pioneering example of a logistics agency in Egypt in terms of efficiency in
cargo handling. Lastly, an outline of the JICA Study was explained together with the study
schedule and a request for further support and cooperation for the JICA Study Team.
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The seminar was attended by approximately 100 people including governmental officers and
logistics-related businessmen. The question and answer session promoted the role of
Egyptian logistics in export/import and industrial development, and highlighted the weak
points of the current situation in Egypt.
The second seminar was held at the time of the submission of Draft Final Report on 25
November 2007, and overall recommendations of the JICA Study were explained in detail.
1.3.3 Workshops
The first workshop was held on 3 May 2007. The compiled findings of the “Interview
Survey” were presented in the workshop to the Transport Planning Authority, Ministry of
Transport, Steering Committee members, and logistics-related government officials and
businessmen. Afterwards, the modern trend of logistics systems was explained with
emphasis on SCM and its supporting equipment and devices. Lastly, the JICA Study Team
presented the “Study Approach to the Formulation of Logistics Master Plan in Egypt” based on
the contents of the previous two presentations, aimed at catching up to the level of the
international logistics industry so as to support an export/import industry of Egypt.
The JICA Study Team held the second workshop on 29 August 2007. Based on the contents
of the Progress Report, the logistics development strategy plan was presented to
logistics-related government officials, businessmen and academics (approximately 60
participants) in the workshop. In addition, the focal points of maritime and inland logistics
development were explained. In the question and answer sessions, the approach of the JICA
Study, location of the logistics center, and funding source were discussed between the JICA
Study Team and the participants.
1.3.4 Participation of Other Seminar
In response to request from the Arab Academy for Science and Technology and Maritime
Transport (AASTMT), the JICA Study Team participated in a seminar on the “Legal Aspects of
Electronic Business” during 7-10 July 2007. The seminar was organized by AASTMT and
Leaders Training & Consultancy, which is a Bahrain-based training and consultancy
organization serving the entire Middle East region. The objectives of the seminar were to
develop the use of electronic business and to understand the concept of e-commerce for
logistics-related businessmen not only in Egypt but also in Middle Eastern countries. The
JICA Study Team presented the following two titles:
- E-trade and International Logistics, and
- Case Studies of Radio Frequency Identification (RFID) Application for Safe and
Efficient International Logistics.
The seminar was a great opportunity to share knowledge between Middle Eastern countries
and Japan on logistics field.
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Chapter 2
Role of Logistics in Egypt and
Improvement Needs
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Chapter 2 Role of Logistics in Egypt and Improvement Needs
2.1 Industrial Development and Logistics

2.1.1 Global Economy and Role of Logistics
These days, we live in an era of the global economy, where the rise of technology has
developed a business environment where products and services are marketed all over the
world and partnerships and economic alliances are developed throughout the world. This
global focus has already become essential for successful business today.
In this global economy, manufacturing companies design production flows within the
framework of an international logistics network. Figure 2.1.1 shows major container flows
of sea routes. Regardless of national boundaries, they try to procure any inputs in the exact
quantity/volume required, at the cheapest price, and with the delivery timing they want. Any
difference in actual quantity, price and delivery timing from those specified in their order
causes an additional cost for the manufacturing companies, and moves them away from the
profit-maximizing equilibrium point. In the worst case it results in a financial loss. In
addition, any inputs need to be delivered in a condition, which is the same as the original
quality without any deterioration and/or damage.
On the other hand, manufacturers are also facing the same requests from the consumers both
in domestic and foreign markets. They have to deliver their products to the market, in the
best quality condition, at the cheapest price and the best timing, as expected by the consumers
and/or wholesalers/retailers.
Tacoma
Los Angeles Hampton Roads
Oakland New York/New Jersey
Long Beach Charleston
Jeddah Dubai
San Juan Salalah Nhava Sheva
Colombo
Less than 2 million TEU

2 to 4 million TEU
4 to 7 million TEU
7 to 10 million TEU
Melbourne
More than 10 million TEU
Source: Rodrigue, Jean, Hofsa University of New York

Figure 2.1.1 Traffic Flows and the 50 Largest Container Ports
In any case, the shorter the lead-time is the higher the user’s satisfaction is since the
manufacturer can make their operation plan more punctual and flexible to reflect the sales
performance. It also helps to reduce material stock volumes prior to production activities.
So, shorter lead-time is an indispensable factor for manufacturers to get a new market and/or a
higher market share, but if they fail to accomplish these requirements they could lose their
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market.
This business model can be defined by the maxim: “Be competitive, or fade out of the market”,
and has become more prevalent in many countries, accompanying progress/spread of regional
economic integration. Bilateral free trade agreements and trade liberalization agreements are
also further accelerating the progress of globalization.
Under this economic globalization, an international/domestic logistics system together with an
information network system has become essential, and improvement in its efficiency shall be
explored without end. Only after continuous improvement of this global scale logistics
system can Egypt develop its export industries and gain new market or larger market share in
today’s severely competitive business world, where the supply chain management (SCM) of
the company is functioning effectively.
What is more, the consigners are always exploring new international freight routes with a keen
interest to secure the shortest lead time. In responding to these needs, the Panama Canal will
be widened (completion in 2014 planned) and it is sure that this project will contribute to
attract the freight flows from South-east or East Asia to Europe via this canal. As for the land
transportation, the Siberia railway has activated its activities of its freight transportation. At
present, a share of this railway contribution is limited small: however, in a very long term, this
railway route as well as the Panama Canal can have an potential impact to change its
competitive status and the current patterns of freight transportation patterns.
In preparing the national logistics improvement plan for the export/import industry even if it is
a conceptual plan as this JICA Study is, this kind of world-wide trends of infrastructure
development for freight are well reflected in planning process not to be left behind the trend.
We are now living in such a competitive world.
2.1.2 Needs for a Logistics System Improvement Strategy in Egypt

Egypt is now in the dynamic global economy, and is facing competition in terms of “price”,
“speed” and “quality” of the logistics service. This trend is expected to progress further, and
it is expected that Egypt will be further involved in a spiral of more inter-dependent and
cooperative relationships with, and of fiercer competition with, other countries.
This prospect is self-evident because the basic structure of Egyptian external trade is
characterized by:
1) Major export commodities consist of goods of primary industries, and
2) Imports are characterized by intermediate goods for manufacturing industries.
The horizontal division of work is being spread around the world, the production plants for
imported items are fragmented into several areas regardless of national boundaries, and each
plant is functioning and synchronizing with others, all of which depend on the support of a
robust international logistics network. So, an efficient logistics system is required to respond
immediately to the demands of both the international and domestic markets.
Furthermore, the Government of Egypt has an export industry promotion policy as an engine
for driving the national economy, targeting the EU market under the “Egypt - EU Partnership
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Agreement” scheme that has become effective in 2004.

It is a basic requirement for an export promotion country to align all the policy efforts so as to
have a logistics system organized to gain the wider markets and to maximize profit.
Therefore, both an improvement of the international logistics system in Egypt and an
establishment of industrial promotion policy are indispensable tasks.
In Egypt, the promotion of export/import industry is the top priority national policy, and the
applied policy measure is to induce an influx of direct foreign investment into the industrial
zones. Therefore, “improvement of the logistics system” is set on how the logistics system
can be made sufficiently attractive for foreign investors to operate in Egypt and to effectively
promote the export industry led by the direct foreign investors. In other words, the task of
the government is to facilitate the necessary logistics infrastructures and/or systems to
effectively shorten the transportation time from the port to the sites of production plants.
Some of these government tasks can involve the private sector. This should also function for
the benefit of domestic trade companies.
Core criteria of the logistics efficiency are:
1) Cheap,
2) Quick and punctual, and
3) No damage during transportation.
However, these vary in degree by the type of goods. Fresh agricultural products for export,
for example, require special devices/packages to keep them fresh without any damage. On
the other hand, in cases of agricultural products that are processed for export, such special
treatment is not necessary, and the cost for transportation is low. As well as the treatment in
transportation, packaging and handling measures to reduce the damages from vibration during
transportation are also indispensable for preventing the losses. It is noteworthy that general
consumer goods require the highest quality of services in all criteria.
A summary of preferences in logistics needs are shown in Table 2.1.1.
In addition, proper transportation modes can be specified by type of goods and a priority
preference in service quality. Truck is the best for “consumer goods” and “fresh
agri-products”, while an inland waterway is suited for “bulk goods”.
2.1.3 Current Logistics Issues in Egypt
The JICA Study Team conducted site inspections at the nodes of the logistics network.
Preliminary findings cover a wide range of issues. Egyptian authorities have made every
effort to smoothen the logistics flows, however, some issues are outside their responsibility
and their efforts have not resulted in actual improvements.
Major issues in determining the efficiency of the total logistics system of Egypt are listed
below. Those issues were identified by means of the “Interview Survey” that was conducted
during the period between January and February 2007.
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Table 2.1.1 Summary of Preferences in Logistics

Sensitivity Degree of Preference
Cost Speed Punctuality Quality

Items (=time) of Delivery (=safety)
Agri-products High
1) export as it is (fresh) sensitivity High High High
2) for processing use High

sensitivity Low Medium Low
Bulk goods High

(coal, cement, stones, sands, etc) sensitivity Low Medium Low
Precious machinery/parts Low

sensitivity High High High
Ordinary machinery/
manufacturing products Medium Medium Medium Medium
Consumer goods
Medium High High High
Note: “High sensitivity”, “Medium” and “Low sensitivity” indicate relative order of the preference
compared with the “Ordinary machinery/manufacturing goods” that the shippers/receivers prefer.
Issue 1: Lack of essential infrastructure and facilities

In case of Alexandria Port, its hinterland is narrow and there is insufficient land for
warehouses and storage space. Besides that, neither wide bonded zones nor warehouses (i.e.
zone and/or warehouse where customs clearance of the imported cargo is suspended for a
temporary storage, processing, exhibition) are available near the port. The other alternative
counter-measure is a dry port located away from the port and near the mega consumption area
such as Cairo, but none of dry port companies even in 6th of October and 10th of Ramadan,
have been authorized yet as an official dry port. These insufficient facilities include the
capacity of the cargo handling at the port.
In case where the storage/cargo handling space in the ports is insufficient, cargo is transported
to the inland container depot and/or distribution center. However, the facilities for
transhipment in the ports are not so well connected with railway or inland waterway
(Alexandria Port and Damietta Port). As this case illustrates, sufficient inter-modal facilities
(such as re-loading facilities) can contribute to solving the congestion level of cargo handling
in the port.
At present in Egypt, all the imported cargo is transported from the port to the production plants
by individually arranged trucks, and a regular line-haul service by truck or railway is not
available in Egypt. A line-haul service is defined as a regular transport service by means of
truck on the assigned route on a planned time schedule between the designated origin
(terminal at port) and the designated terminal near the destination (for instance, factory and
terminal near the mega consumption area). The advantages of this service are the easy
arrangement of transportation regardless of the volume of cargo and that punctuality of the
transportation services can be also guaranteed. All of what the cargo owners/recipients have
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to do is to pick-up the cargo at the terminal by a medium or small truck. Total cost of the
transportation is usually lower than order-made pick-up and delivery services.
A regular line-haul service system requires a truck terminal or distribution center both at the
port and the area close to the final destination. In some cases, the truck terminal and
distribution center is integrated into a logistics park (including truck terminal, distribution
center, inter-modal terminal, bonded warehouse, custom office etc). Lack of these
distribution facilities has led to the unavailability of a regular line-haul transport service.
Issues 2: Potential economic routes to be explored
The majority share of cargo from Asian countries is re-routed in Italy, Spain and other ports of
the European countries, and a small share of Asian cargo is unloaded at Sokhna Port and
transported into the hinterland by land transportation services. The latter route is apparently
cheaper than the route via Suez Canal and European countries, and the necessary travel time
can be drastically shortened. If the final destination of the cargo is Egypt, the utilization of
this route (Sokhna Port to hinterland) should be fully utilized, and the necessary infrastructure
and facilities should be provided according to the volume of transportation demand.
As for the imported products from Europe, the major gate is currently Alexandria Port and
transport is mainly by truck to Cairo and its adjacent areas. However, the Desert Road
(Alexandria – Cairo) is expected to become congested in the future and the cargo handling
capacity at Alexandria Port is physically limited in regard to the drastically increasing demand
of transportation. Another new transportation mode and route should be explored.
Re-activation of railway and inland waterway can be envisaged.
The potential logistics route can be proposed and explored to save logistics time and cost.
For instance, Sokhna Port could offer new logistics route for the cargo from the Asian
countries to the final destination in Egypt. That route is:
Logistics route (Asia ~ Sokhna Port ~ Cairo ~ 6th of October).
Cargo from Asian counties goes through Suez Canal and arrives at Alexandria Port via
European seaports on the Mediterranean Sea. However, the travel distance can be shortened
by going on the new route of Sokhna Port ~ (railway, truck) ~ Cairo ~ 6th of October. At the
Sokhna Port, rail transportation services are available several times a day, and re-loading of
cargo to the railway can be executed smoothly. In addition, time and transportation cost can
also be saved for some cargo from Asian countries to the industrial estates in 10th of Ramadan.
These new routes might turn out to be more attractive for cargo to Cairo, 6th of October and
10th of Ramadan if a distribution center/truck terminal was established around Cairo, a pivotal
city of the three destinations.
Distribution center (in conjunction with truck terminals) attached to each industrial center
and/or industrial area, can also contribute to save logistics cost and time by assuring a more
frequent trucking service between the industrial estate and the port.
A distribution center near Cairo could offer a new paradigm to improve the logistics flows
into/from Cairo since a truck ban prohibits any large truck from going into the metropolitan
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area in daytime (from early morning to midnight). This is a severe constraint on logistics
flows, resulting in negative impacts on production/consumption activities there, making it
impossible to guarantee a smooth and profit-making operation for factories in the area.
Issue 3: Lack of dual logistics routes/modes for risk reduction
A dual system is necessary as a risk reduction measure especially when the road traffic suffers
from heavy traffic congestion or when the road traffic is interrupted by accident or other
reasons. Though the cost might be higher and necessary time of logistics flows longer than
those of the normal transportation mode, an assured availability of alternative logistics modes
and routes can guarantee continuous production activities and secure reliability for users.
At present for industrial logistics, there is no guaranteed effective substitutive transportation
mode for Damietta Port and Alexandria Port except road transport. Inland waterway and
railway are available at both ports, but their connectivity with shipping services is not in good
condition. What is worse, the railway operation is not punctual to a planned time schedule
and has experienced accidents. The water depth of the canal is not sufficient for container
transportation and it has lock-gate problems. Thus, neither the current railway nor inland
waterway is suitable for logistics use, especially for time- and delivery punctuality-sensitive
cargo at these ports.
As far as Port Said Port (West) is concerned, two transportation modes i.e. road and railway,
are available. However, current railway access to the existing industrial zones is not
convenient because direct access line to the industrial zones such as 10th of Ramadan and 6th of
October is not available, and the frequency of freight train operation is very limited.
Therefore, railway does not play a significant role to form a close transport linkage with the
industrial zones around Cairo. This is a serious logistics defect for national industrial
development.
Sokhna Port has facilities and the most favorable transportation conditions, with both rail and
truck services.
Issue 4: Complicated procedures for export/import

This can apply to both the port and cross-boarder transportation. The issue covers customs
clearance (bill of lading, invoice, packing list, insurance), quarantine etc., and the problem lies
in the complicated documentation and registration requirements. Some of the documents
must be written in Arabic by hand, and require a long time to prepare. So, the language
problem keeps non-Arabic speaking people away from custom clearance and export/import
procedure. What is worse, advanced registration (prior to the date of entry) is not allowed,
resulting in a late start to the procedures process.
In addition, the shippers have to visit many officials in different offices. And in settling tariff
rate disputes, a round trip between Alexandria Port and Cairo is sometimes required.
As for cross border road transportation, the same kind of registration has to be executed at
both sides of the border, and the driver wastes a lot of time while the truck is not permitted to
go into the neighboring country with its cargo and in some cases re-loading of the cargo is
required.
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As of December 2006, the Alexandria Port Authority has introduced a single window system
of customs procedure making use of a computerized network system. Careful observation of
the actual performance will be required since this kind of new system may not function
because of the inadequate experience of the staff.
Issue 5: Lack of information network for system integration

Many port authorities are already in the process of computerizing all the customs procedures
at the port, or have plans to facilitate a computer system. However, this system is not well
connected with many other related offices such as quarantine, forwarders, truck companies,
railway, inland waterway, shippers and/or receivers.
An information network makes all the personnel concerned aware of the actual location of
cargo and allows them to take necessary actions to optimize the timing of service provision,
and an insufficient network cannot accomplish this objective.
In coping with these issues, some supporting measures for small and financially vulnerable
companies were explored in the JICA Study.
Issue 6: Further promotion measure for private sector participation
Some development plans for infrastructure and/or facilities have not been implemented
because of difficulties in project financing and the operation capability. Sokhna Port is a
pioneering case of private sector participation (strictly speaking it is a
Build-Operation-Transfer scheme), and there are no other successful cases of the project
financing schemes with private participation.
However, it is necessary to have private participation to make a breakthrough in the present
slow progress of the logistics infrastructure development, and new ways of promoting this
should be explored. Some new device to attract the private sector shall be explored more in
the JICA Study.
Private sector participation is especially useful for the management aspects of logistics
facilities, which require special operation skills, know-how and experience. It is not practical
to establish new logistics facilities and management without professional personnel.
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2.2 Individual Role of Ports in Egypt

Port Said Port (West and East), Damietta Port, Alexandria Port and Sokhna Port are major
international ports in Egypt. Though Damietta Port and Port Said Port (West and East) have
routes connecting with the Middle East and Asia, the linkage between these two ports and
Cairo is not good except the road transportation because of the poor and time-consuming
network of railway. Alexandria Port and Sokhna Port have closer relationships with Cairo
because of good highway networks, compared with other ports. However, poor quality of
railway is also true for these ports.
Taking into consideration the distance to Cairo from Damietta Port and Port Said Port, they
should be developed as twin hub ports in the Mediterranean Sea Region under the condition
that they would share their own compatible roles cooperatively. It is that the Government of
Egypt would clearly define the individual future roles for these two ports and make the related
port authorities accept the national vision (Figure 2.2.1). Alexandria could have established a
strong linkage with many foreign ports in the Mediterranean Sea, and this port in a long run
can be the biggest regional hub port in Egypt.
International
Hub Port
+
Industrial Estate
Global Enterprises
Regional Hub Port
International Port
(not hub port)

Figure 2.2.1 Roles of Ports in Egypt
Although these ports have ambitious port development plans, these plans are not coordinated
with each other and are sometimes incompatible. According to the port development plans,
each port authority intends to develop its own port as the biggest port in Egypt without
considering the role and plans of the other ports. It is necessary for the Government of Egypt
to allot a suitable role to each port depending upon each port’s geographical, industrial and
economical role. A comprehensive plan in which each port has its own specific and
advantageous role is indispensable for Egypt to be at the forefront of international competition
to establish hub ports in the Mediterranean Sea Region. Disintegration of plans of the ports
would lead to a misallocation of national budget over a duplicated and over-assessed function
of ports. Establishment of new Port Coordination Board or a function strengthening of
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existing governmental organization should have this definite role in Egyptian port
development planning.
Sokhna Port can be expected to be a major gateway for cargo transportation from/to Middle
East and Asian countries as well as African countries. If large trunk line ships can stop in this
port, the reduction of transportation costs and travel times can be expected to improve the
competitive power of Egyptian products in Asian and East African countries.
2.3 Problems of the Greater Cairo Region

Traffic congestion and environmental problems in Greater Cairo Region (GCR) is getting
more serious. At the same time, because of the truck ban, the freight transportation in/around
GCR has been suffering from a long waiting time and inefficient operation. This is
especially true for trucks of imported consumer goods since any truck can not go into the
center of GCR for delivery to wholesalers and/or retailers. Furthermore, because of the lack
of parking facilities, loading/unloading activities are usually carried out on the street resulting
in severe congestion, deterioration of the pedestrian environment and difficulty to access
certain routes.
Usually in this case, the distribution center storage all the freights from the ports temporary,
and in an off-time of truck ban, small trucks commence the delivery of temporary stored goods
after sorting, labeling, and re-packing. However, this kind of logistics system is not available
in Egypt.
This current situation is completely opposite to the situation that the modern logistics system
seeks for, where the Just-In-Time (JIT) concept is required as the basic business model for the
purpose to meet the users’ request and not to miss the business chance in making the profit and
to minimize the total time of delivery.
To cope with these urban problems, it is advisable to develop a Distribution Center in the
outskirts of GCR. Physically the distribution center should be located at a site where
pick-up/delivery trucks (between distribution center and shops in the center of GCR) as well
as line-haul trucks (between distribution center and ports) can easily access to the highway and
railway networks, river port and airport as shown in Figures 2.3.1.
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Incomplete Ring road without Logistics Center Logistics

Facilities
City City
Complete Ring road with Logistics Center
Logistics
Center
City City
Logistics Logistics Logistics

Center Center Center24

Figure 2.3.1 Role of Logistics Center
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Chapter 3
Demand Forecast for Export
and Import Freight
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Chapter 3 Demand Forecast for Export and Import Freight
3.1 Industrial Development in Egypt

3.1.1 Strategy of Industry Development
The Ministry of Foreign Trade and Industry and the Ministry of Investment have their own
policies, on the basis of their mandate, for industry and investment development. However,
there does not appear to be an integrated comprehensive national policy. There is no
industrial development plan with due attention to necessary logistics issues for logistics
improvement. The JICA Study Team understands that the Ministry of Foreign Trade and
Industry is currently preparing a national strategy for industrial development, and the JICA
Study Team hope that there has been collaboration related to logistics in establishing a new
industrial strategy, especially in selecting appropriate locations for industrial zones.
This section describes three items; (1) industrial development strategy, (2) export development
strategy, and (3) target industrial sectors for export promotion.
(1) Industrial Development Strategy
a) Industrial Development of Egypt
Establishment of the Industrial Development Authority (IDA)
IDA was established under the Ministry of Foreign Trade and Industry in November
2005. IDA has a mandate to end long-standing obstacles to new industrial
investment in Egypt. IDA is also responsible for facilitating the acquisition of land,
with the necessary utilities, at feasible prices and for Greenfield projects1.
The Industrial Development Strategy
The Ministry of Foreign Trade and Industry released a policy paper entitled “The
Industrial Development Strategy” (hereinafter “the Strategy”).
The Strategy emphasizes three key issues to develop the Egyptian industry, i.e.
industrial production through export development and FDI attraction, industrial
productivity through a set of policies/programs, and an industrial structure ranging
from resource-based and low-tech activities to medium-and high-tech industries.
b) Target of Industrial Development Strategy

In order to stimulate Egyptian industry and the economy further, growth and
investment targets are planned for the industrial sector (2005-2025) as shown in Table
3.3.1. Real growth rates in industrial production are planned to exceed real GDP
growth rates by 0-3 % after 2009.
1
The guarantees and exemptions of Law No. 8 Year 1997 for Greenfield projects are described below:
• A project may be wholly owned by foreigners,
• Guarantees against nationalization and expropriation of the project,
• Output of the project is not subject to price control,
• Projects are allowed to repatriate their capital and profits,
• Foreign experts salaries are exempt from income tax if their stay in Egypt is for less than one year, and
• Imported capital assets and construction materials required to establish an approved project are subject to a
unified import duty rate of 5%.
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Considering the creation of new job opportunities for the labor force, around 7-8 % of
the real growth rate in industrial production can be assumed as a national target for
the industrial sector. It could be estimated that the industrial production value would
be increased in accordance with the growth rates.
Table 3.1.1 Planned Estimated Growth Rates in the Industrial Sector
Year 2005 2006 2007 2008 2009 2010 2011 2015 2020 2025
Real Growth Rate in
Industrial Production 3.3 4.0 5.0 5.5 6.0 6.0 7.0 8.0 9.0 9.0
(%)
Premium Over Real
-1.7 -1.5 -1.0 -0.5 0.0 0.0 0.1 2.0 3.0 3.0
GDP Growth (%)
Nominal Industrial
92.0 101.0 111.0 122.0 134.0 147.0 162.0 241.0 413.0 728.0
Production (billion LE)
Share of Industry in
17.1 16.8 16.6 16.6 16.6 16.6 16.7 17.7 19.7 22.6
GDP (%)
Nominal Investments in
the Industrial Sector 12.0 16.0 22.0 27.0 32.0 35.0 45.0 77.0 130.0 229.0
(billion LE)
Industry Share in Total
Investment in the NA 14.0 15.9 17.4 18.9 18.9 22.3 26.9 29.5 33.8
Economy (%)
Source: Ministry of Foreign Trade and Industry, Egypt’s Industrial Development Strategy-Industry
(2) Export Development Strategy

The Strategy suggests that the objectives of targeting export are not only to increase the
level of manufactured exports, but also to reinvigorate the technological structure of
manufactured exports to increase the base of medium- and high-technology manufactured
exports. As shown in Table 3.1.2, the Strategy is targeting the increase in the overall
export proportion of the manufacturing sector in terms of the manufacturing value added
(MVA) from 2005 through 2025.
Table 3.1.2 Export Target
Year 2005 2006 2007 2008 2009 2010 2011 2015 2020 2025
Manufactured export
Propensity 20 20 22 22 24 24 26 30 34 40
(Exports, % of MVA)
Manufactured Exports
18 20 24 27 32 35 42 72 140 291
(billion LE)
Source; Ministry of Foreign Trade and Industry, Egypt’s Industrial Development strategy-Industry
(3) Targeting Industrial Sectors for Export Promotion

The top three exports (excluding petroleum) of Egypt in 2005 are metal products
(US$5,951 million), ordinary metals and manufactured (US$855 million), and vegetable
products (US$736 million). Those three export sectors should be promoted in terms of
export development and improving the knowledge-based of related technology,
productivity and competitiveness with other countries. The Japan Desk of GAFI pointed
out at the interview with the JICA Study Team that agro-products (in particular, fresh
vegetables) and textile sectors should be promoted in terms of export and FDI attraction.
The Strategy stated that traditionally the most important industrial sectors in terms of their
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value-added contribution through manufacturing are engineering and electrical machinery,

food processing, chemical and pharmaceuticals, textiles and garments, building materials,
furniture, paper and paperboard, and leather.
It is proposed that the medium and high tech sectors be promoted as new fields for
Egyptian manufacturing industries, but it does not mean discarding existing traditional
sectors. The Strategy should focus furthermore on development of target sectors along
with existing sectors.
The JICA Study Team recognized that existing sectors and target sectors of exports
include the following sectors respectively:
Existing Sectors:
- Engineering - Building Materials
- Food Processing - Furniture
- Chemicals & Pharmaceuticals - Paper & paperboard
- Textiles & Garments - Leather
Target Sectors:
- Engineering Machinery & Equipment - Life Sciences
- Renewable Energy - Biotechnology
- Labor-intensive Consumer Electronics - Ethnic Products
- Automotive Components
3.1.2 Current Industrial Areas in Egypt

(1) Locations of Industrial Zones
a) Categories of Industrial Zone in Egypt
According to IDA of Ministry of Foreign Trade and Industry, industrial zones in
Egypt are divided into 4 categories as follows;
Table 3.1.3 Category of Industrial Zones
No. of
Category Description
Zone
1. Governorate 68 The zones belong to the governorate and were located on its land. They are
Industrial Zones, controlled - till now - by the governorate however, in future will be
controlled by IDA. Some of those zones are established by presidential or
governmental decrees, but mainly they are established by the governorate
decree. All of the 68 zones are operating and have production.
2. New-Urban 19 The zones belong to the Ministry of Housing, Utilities & Urban
Communities Communities and were controlled by it until the establishment of IDA,
industrial zones, which became responsible for controlling them. They are located in the
new urban communities in addition to the other facilities placed in some
cities (housing, education, health, etc).
Note that IDA was established in November 2005.
3. Public Free 10 These areas belong to GAFI and under their supervision and control.
Zones areas, Lands are given through GAFI; however, IDA approval is required for
establishing an industrial project.
4. Special Economic 2 One is being developed in Suez and the other in Port Said but not yet in
Industrial Zones , practice.
Source: IDA
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b) Locations of Industrial Zones

Locations of industrial zones are shown in Figure 3.1.1. Major development areas
for industrial zones are located along the River Nile (between Cairo and Qena
Governorates), Alexandria desert road (between Cairo and Alexandria), and
Cairo-Ismailia-Port Said road. The industrial zones in those areas and the major
ports are mainly supported by the road network.
c) Other Industrial Zones

Heavy industry and mining zones are categorized as other industrial zones and their
characteristics are summarized as follows:
- These zones are located near to the areas of natural resources,
- Established by Prime-Minister Decree,
d) Future Development of Industrial Zones
In order to forecast the future distribution of the industrial zones in Egypt, the JICA
Study Team compared the areas of the major industrial zones in 2006 and 2022 as
shown in Table 3.1.4 and Figure 3.1.2. The distribution of future industrial zones in
the new urban communities and governorates could be clarified by taking the area
used in each existing industrial zone as an indicator (See Appendix-2 for all the
industrial zones of governorates and four major industrial zones in new urban
communities).
According to the previous mentioned table and figure, it is clear that the highly
developed industrial zones are located in the Lower Egypt region (e.g. 10th of
Ramadan, 6th of October and Burg el Arab), however most of the industrial zones
which are located in Upper Egypt region (e.g. Beni Suef, Asyut, Sohag governorates)
are small scale, newly established or unused yet.
According to GAFI and IDA, the industrial zones in 10th of Ramadan and 6th of
October have been almost saturated and El Sadat shall reach saturation soon. IDA
has publicly announced new industrial development plans in 10th of Ramadan, 6th of
October, Burg El Arab and El Sadat.
The Government of Egypt is targeting the development of the Upper Egypt region by
establishing new industrial zones, with incentives, and improving the infrastructure in
its governorates. However, the magnitude of investment and development could be
furthermore increased in the Lower Egypt region due to the already settled
infrastructures and facilities in addition to the highly developed industrial
establishments.
From the logistics viewpoint, the JICA Study Team concluded that the focus should
be on the two axes shown by dotted circles in Figure 3.1.1 that indicate the industrial
zones along Alexandria Desert Road and Cairo-Ismailia-Port Said Road.
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Source: Worked out by JICA Study Team based on data from IDA
Figure 3.1.1 Industrial Zones in Egypt
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Table 3.1.4 Area of Developed Industrial Zone

Unit: ha
Location 2022
Industrial Zone 2006
No (estimated)
1 10th of Ramadan, Sharkya Gov. 3,500 4,000
th
2 6 of October, Giza Gov 2,550 3,750
3 Burg El Arab, Alexandria Gov. 800 1,380
4 Abu Rawash & its extensions, Giza Gov. 507 590
5 El Sadat, Menofia Gov. 500 1,050
6 Industrial Zone 31/4, Beni Suef Gov. 189 720
7 Safa Bany Ghaleb, Asyut Gov. 90 112
8 Bet Dawood, West of Girga, Suhag Gov. 5 251
9 Industrial Zone 31/2, Beni Suef Gov. 0 900
Source: IDA
5,000
4,000 3,750
4,000 3,500 2006 2022
Area (ha)
3,000 2,550
2,000
1,380
800 1,050 720 900
1,000 590 500
507 189 251
90 112 5 0
0
1 2 3 4 5 6 7 8 9
Location No.
Source: IDA
Figure 3.1.2 Area of Developed Industrial Zones
(2) Lists of Industrial Zones

Tables 3.1.5, 3.1.6 and 3.1.7 show the names of public free zones, special economic
industrial zones, industrial zones in new urban communities and industrial zones in
governorates respectively. These tables were obtained from IDA. The numbers of each
zone in Table 3.1.6 and Table 3.1.7 are indicated on Figure 3.1.1.
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Table 3.1.5 Public Free Zones and Special Economic Industrial Zones
Industrial Zone Governorate Zone Name
Cairo Nasr City
Giza Media Production
Alexandria Alexandria
Menofia Shebin El Kom
Suez Suez
Public Free Zones
Damietta Damietta
Port Said Port Said East Port
Ismailia Ismailia.
Qena Qeft
Cairo Badr
Northern Suez gulf Economical
Special Economic Suez
Zone.
Industrial Zones
Port Said East Port Said Industrial Zone
Source: Industrial Map information Center, IDA, May 2007
Table 3.1.6 Industrial Zones in New Urban Communities

Governorate No. Communities Name
Cairo 1 Badr
2 15th May
3 New Cairo
4 Al Shrouk
Alexandria 5 Burg El-Arab
Suez 6 Ataka, Ext.
Damietta 7 New Damietta
Sharkia 8 Salehiyah
9 10th of Ramadan
Kalyoubia 10 El-Obour
Menoufia 11 El-Sadat
Behera 12 Nubariyah
Giza 13 6th October
Fayoum 14 New Fayoum
Beni Suef 15 New Beni Suef
Menia 16 New Menia
Asyut 17 New Asyout
Suhag 18 New Suhag
Teba 19 New Teeba
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Table 3.1.7 Industrial Zones in Governorates

Industrial Zones in Industrial Zones in
Governorate No. Governorate No.
Governorates Governorates
Cairo 1 South of Helwan Giza 40 Abou Roash , Ext
2 Thoura and Shak Al Beni Suef 41 Biad Al Arab
Thouban
3 Al Katamia 42 Radi Koum Abou
4 Shak Al Thouban (seized) 43 Industrial zone 31/1
5 Al Roubiki 44 Industrial zone 31/2
Alexandria 6 Al Manshia Al Gadida 45 Industrial zone 31/3
7 Al Naseria 46 Industrial zone 31/4
8 Upper and lower Mirgham Fayoum 47 Koum Oushim
9 K.31;desert road 48 Kouta
10 Sepeko Menia 49 (Moutahra( east of River Nile
11 Al Agami; Upper Bitach Asyout 50 Al Awamer, Abnoub
12 Al Nahda Al Sanaia 51 Al Zahrabi; Abou Teig
13 Ohm Zagheou 52 Al Safa ; Bani Ghalib
Port Said 14 C1 industrial zone 53 Sahiel Sielim
15 C6 industrial zone 54 Dashlout; Dairout
16 C8 industrial zone 55 Al Badari
17 C9 industrial zone Suhag 56 Al Kaother district
18 Western north of Bourtix 57 Al Ahaywa
factory
19 Al Houd Al Samaki; Al 58 Biet Dawood; west of Girga
Rasoua
20 C7 industrial zone 59 West of Tahta
21 C11 industrial zone Qena 60 (Al Kalahien, Kaft quarter
Suez 22 Light industrial zone 61 Heo
Dakahlia 23 Southwest of Gamasa Aswan 62 Al Shalalat ; Al Elaki valley
24 Industries Al Asafra Cluster New Valley 63 Al Kharga
of small- scale
Sharkia 25 Bilibis 64 Mout
Kalyoubia 26 Al Shourok Matrouh 65 Matrouh road 26 km.
southeast of Matrouh
27 Al Safa Industries Zone North Sinai 66 Baer Al Abd
Kafr El-Sheikh 28 Baltiem 67 Al Masaeed
29 Motobus 68 El-Aresh
Menoufia 30 Mubark,its Ext
Behera 31 Al Natroun valley
32 Al Bousily desert
33 Edkou
Ismailia 34 East of Al Kantra
35 First industrial zone
36 Technology valley
37 Second industrial zone
38 Abo Khalifa, Ext
39 Al Rayah -West Kantara
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(3) Establishments of Industrial Zones in Selected New Urban Communities

Table 3.1.8 shows that 10th of Ramadan, 6th of October, New Burg El-Arab and El-Obour
have highly developed industrial zones and El-Obour, 6th of October, 10th of Ramadan,
El-Sadat and Badr have many factories under construction. According to IDA and GAFI,
the industrial zones of 10th of Ramadan, 6th of October, New Burg El-Arab and El-Obour
have been saturated and El-Sadat also will be saturated soon. Many potential investors
for those industrial zones are registering their names on waiting lists.
Table 3.1.8 Factories in New Urban Communities in 2006

Producing Factories
Investment Annual
City No. of
Area (km2) Capital Stock Production
Factories
(million LE) (million LE)
10th of Ramadan 1,000 9.7 16,262 17,405
15th May 76 0.2 124 155
El-Sadat 263 3.8 2,785 1,029
6th of October 875 7.7 9,636 7,690
New Salehiyah 86 0.6 1,203 2,271
New Burg El-Arab 444 3,472.3 3,220 4,922
New Damietta 170 603.3 168 164
New Beni Suef 59 229.9 52 169
Badr 179 897.1 431 387
New Nubariyah 46 247.8 271 87
El-Obour 300 2,223.3 3,870 34,500
New Menia 6 13.1 5 8
New Cairo 20 169.2 47 15
Total 3,524 7,878 38,074 68,802
Factories Under-Construction
Investment Annual
City No. of 2 Capital Stock Production
Area (km )
Factories (million LE, (million LE,
estimated) estimated)
10th of Ramadan 282 3,750.7 1,336 1,262
15th May 45 30 33 22
El-Sadat 212 2,660.1 2,757 6,902
6th of October 316 1,315.2 1,779 1,195
New Salehiyah 73 229.8 386 1,183
New Burg El-Arab 154 1,466.3 342 429
New Damietta 132 210.9 85 92
New Beni Suef 49 187 41 93
Badr 209 779.8 363 226
New Nubariyah 28 73.2 71 48
El-Obour 374 1,289.6 769 429
New Menia 25 39.6 32 19
New Cairo 2 3.6 1 1
Total 1,901 12,035.8 7,995 11,901
Source: IDA, Ministry of Foreign Trade and Industry
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(4) Major Existing Industries and Their Products at Governorate Level

According to GAFI’s information, each governorate has the following established major
industries and products:
Table 3.1.9 Major Industry and Product by Governorate

No. Governorate Name Major Industry and Product
1 Menoufia & Asyout Pharmaceuticals and medical products.
governorates
2 Suhag governorate Paint products and farm tractors.
3 El-Menia governorate Animal fodders, concentrates, organic fertilizers and
concrete pipes.
4 Beni Suef governorate Cement plants, vegetables and fruits preservation and
dehydration.
5 El-Fayoum governorate Ceramics and sanitary wares – dehydration of field
crops.
6 Alexandria governorate Petrochemicals and tire plants.
7 Menoufia governorate Household electrical appliances and paper products.
8 Port Said governorate Chemical products, reinforced steel and spinning &
weaving.
9 Kafr El-Sheikh governorate Liquid gases and cylinder filling.
Source: GAFI
Products of selected industrial zones are shown in Appendix-2.
3.1.3 Future Vision of Industrial Structure

(1) Allocation of Industrial Estates
a) New Industrial Zones
One of the major mandates of IDA is to create new industrial zones in Egypt.
According to the new industrial development plan of IDA, 5,000ha of industrial
zones are required for the next five years including 3,000ha of new industrial zones in
the cities of Burg El-Arab (800ha), 10th of Ramadan (500ha), El-Sadat (500ha) and 6th
of October (1,200ha).
b) Industrial Zones in Governorates
There are 68 industrial zones in 22 governorates. Since March 2007 IDA and
governorates have been studying the sites of each industrial zone to determine if there
is the necessary infrastructure and public services to attract investors and promote
development of each industrial zone. Currently, many of the industrial zones are not
yet equipped with fundamental infrastructures such as trunk road networks, water and
wastewater treatment facilities. Such circumstances with insufficient utilities would
be an obstacle to attracting investors for the industrial zone.
Some of the industrial zones fully occupied but others are less utilized as shown in
Appendix-2. Governorates are able to establish new industrial zones by decree but
new establishments have been limited because the activities of IDA and the
governorates have been concentrated on promoting the existing industrial zones.
c) Free Zones
According to the interview with GAFI officials, the Government of Egypt is no
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longer interested in establishing new free zones because firstly; many investors are
being attracted to the other industrial zones due to the recent economic environment
reformed in Egypt, secondly; free zones would bring less benefits to Egypt than the
other industrial zones due to the advantages guaranteed to investors.
d) Heavy Industry and Mining Zones
IDA is the authority responsible for developing heavy industry and mining zones.
Cement factories have been established in the heavy industry and mining zones of the
North Sinai area (1 cement factory), Suez (3), Cairo (2), Alexandria (1), Asyut (1),
Beni Suef (1) and Qena (1). IDA does not appear to have any future development
plans for heavy industry zones, so the development impacts of heavy industry zones
on the future logistics in Egypt would be limited.
e) Toshka Project
The Toshka project, which is located in the western desert of High Dam Lake, is one
of the mega projects of Egypt and the final completion of this project is scheduled in
2017. The project aims at transforming a desert in the region into an arable land in
order to create 2.8 million new jobs and attract 16 million people to the new towns.
The Toshka project is agriculture based and includes processing equipment. One of
the major targets is to export agricultural products. The logistic system for export in
terms of improvement of airports and road network was studied and reported on by
TPA in 2003.
The annual agricultural production quantities transferred from Toshka are shown in
Table 3.1.10.
Table 3.1.10 Annual Agricultural Production Quantities to be transported
from Toshka
(Unit: thousand ton)
Consumption of
Year Export Total Transported
other governorates
2003 385.7 272.1 657.8
2008 642.8 453.4 1,096.3
2013 964.3 680.2 1,644.5
2017 1,285.7 906.9 2,192.6
Source: “Facing the transportation demands in the development project in South the Valley,
Toshka region study”, Ministry of Transport, June 2003.
Estimation of quantities of agricultural production to be transported from the Toshka

zone by various means of transportation is as follows:
The annual quantities of the agriculture production transported from the Toshka zone,
either to the different republic governorates or to be exported assumes that 15% of the
agricultural production in special crops (vegetables, tomatoes, fruits, figs) will be
transported in containers by air, which represents 6.7% of the Toshka zone total
production and is distributed as follows; 75% to East of Owaynat airport and 25% to
Aswan airport. Export of fruits has been started even though the quantities are
limited.
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Exportation of fresh fruits and vegetables are planned through Aswan airport, but
production and quantities for export are still only at the planning stage. Accordingly
the logistics flow could not be clarified.
(2) Forecast of Production in Four Major Industrial Zones
According to the production value in the industrial zones in 2005, four major industrial
zones such as 10th of Ramadan, 6th of October, Burg El Arab and El Sadat have been
selected for forecasting their industrial production in 2022.
Based on the assumption that the production value per unit area will be the same by 2022
and that the new industrial zones in the four cities will be completely developed by 2022,
the production in the four major industrial zones are estimated as shown in Table 3.1.13
and Figures 3.1.5.
Productions of four industrial zones in 2022 are estimated to be 1.39 times more than
2005.
Table 3.1.11 Forecast of Production in the Four Major Industrial Zones
(billion LE in 2005 prices)
2005 2022
Industrial Zone
Area (ha) Production Area (ha) Production
th
10 of Ramadan 3,500 59.4 4,000 67.8
6th of October 2,550 34.5 3,750 50.8
El Sadat 500 11.6 1,050 24.4
Burg El Arab 800 10.1 1,380 17.4
Source: 2005 data obtained by IDA and 2022 data estimated by JICA Study Team
4,500 4,000 80.0

3,750 67.8
4,000 3,500 2006 70.0 59.4 2006
3,500 2022 60.0
3,000 50.8 2022
Area (ha)
2,550
L.E. billion
50.0
2,500 34.5
2,000 40.0
1,380 24.4
1,500 1,050 30.0
800 17.4
1,000 500 20.0 11.6 10.1
500 10.0
0 0.0
10th of 6th October El Sadat Burg El Arab 10th of 6th October El Sadat Burg El Arab
Ramadan Ramadan
Area Production
Source: 2005 data obtained by IDA and 2022 data estimated by JICA Study Team
Figure 3.1.3 Area and Production of Major Industrial Zones
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3.2 Socio-economic Framework

3.2.1 Population
Population data reveals detail features such as population distribution, employment and sector
structure. The Housing Census published detail information based on the Population and
Housing Census 1996 and 2006 conducted by CAPMAS, which covers the whole country.
The Census 2006 provides only the total figures by governorate and others are still in
compilation process as of June 2007.
Total populations in each Census year are presented in Table 3.2.1. The growth rate between
the years 1986-1996 was 2.07 % and that of 1996-2006 is 2.04%, showing a slightly
decreasing tendency, however it is still a high rate compared with the international average
rate of less than 1.6% during 1970-2000 (US Census Bureau, International Data Base, August
2006).
Table 3.2.1 Population of Egypt: Actual and Forecast
1986 1996 2006 2022
Census Census Census (Forecast)
Population (million) 90.8 (Optimistic)
48.3 59.3 72.6
86.0 (Conservative)
Average Annual 1.41% (Optimistic)
- 2.07% 2.04%
Growth Rate (%) 1.07% (Conservative)
Source: 1986, 1996, and 2006 Census CAPMAS, 2022 forecast: The Fifth Five-Year Plan for
Socio-Economic Development (2002-2007) & First Year, Ministry of Planning (April 2002)
The future population perspective is presented in the twenty-year development plan (Ministry
of Planning, April 2002), which provides the population forecast at 2022. It assumes that
population growth rate at 2022 will be at 1.0% without any clear policy and reasoning,
resulting in the annual average growth rate between 2006–2022 of 1.07% (conservative) and
1.41% (optimistic) up to 2022 with a remarkable reduction of population growth tendency.
No amendment of future population figures has been published yet, as of June 2007.
The two scenarios of “conservative” and “optimistic” set lower figures for population growth
than actual figures since the 1986 Census. If the population growth rate is kept at the same
level of 2.04% as it was in the 1990s and the early 2000s, the total population could be
expected to reach at 100.3 million by 2022.
Employment distribution by governorate is shown in Figure 3.2.1 together with sector
composition. It apparently shows that the densely populated areas and the economic active
areas spread along the River Nile and over the Delta area. Two corridors provide large
employment opportunities: a) Cairo - Alexandria Corridor, and b) Cairo – Ismailia – Port Said
Corridor. Since the management of the factories answered in the Interview Survey that they
had selected their present locations because there was plenty of capable labor and favored
living in an urban community, these corridors are considered to be the best locations to meet
their demand and preference, suggesting that this tendency will continue in the future.
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1,000 workforces Primary Sector Secondary Sector Tershary Sector

2,500
2,000
1,500
1,000
500
0
Alex.
Asyout
Suez
Luxor
Kalyoubia
Menoufia
Giza
Menia
Matrouh
Fayoum
Cairo
Port Said
Dakahlia
Sharkia
Kafr-El-Sheikh
Gharbia
Behera
Suhag
Qena
Aswan
Red Sea
El-Wadi-El-Gidid
North Sinai
South Sinai
Beni suef
Damietta
Ismailia
Source: CAPMAS
Figure 3.2.1 Number of Employees by Governorate in 2004
3.2.2 Industrial Structure

Sectoral share of each governorate and its GDP contribution are not published in Egypt.
However, employment structure data by sector in 2004 and 2005 are available at the Central
Agency for Public Mobilization and Statistics (CAPMAS) website. Such data reveals which
governorates are leading the Egyptian economy.
The brief analysis by the JICA Study Team reveals that the governorates located along the two
economic corridors have higher contributions to GDP. These correspond with the locations
of industrial estates. They are:
First: Greater Cairo Region – Alexandria corridor, and
Second: Greater Cairo Region – Ismailia – Port Said corridor.
Table 3.2.2 lists all the governorates in order of sectoral share of the secondary sector. This
roughly indicates how governorates contribute to the GDP since the secondary sector has the
highest and increasing productivity among the three sectors and its large share indicates a
dynamic and leading engine of GDP growth as a whole as well as in the number of employees.
By considering the absolute size of this contribution as well as share, it is possible to gauge the
magnitude of governorate’s contribution to the GDP. Agriculture is a traditionally labor
absorptive sector and as it suffers from low labor productivity there can be disguised
employment in the sector. The tertiary sector has a constant productivity, and thus it cannot
grow rapidly in the short term. The secondary, especially manufacturing, sector alone can
generate the power to accelerate economic growth.
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Table 3.2.2 Employment and Sector Share by Governorate in 2005

Employees (unit: 00) Share (unit: %)
Code Governorate Primary Secondary Tertiary Total Primary Secondary Tertiary
2 Alex. 6 3,232 5,900 9,138 0% 35% 65%

4 Suez 17 397 769 1,183 1% 34% 65%
8 Kalyoubia 1,486 3,352 5,382 10,220 15% 33% 53%
5 Damietta 786 956 1,258 3,000 26% 32% 42%
1 Cairo 40 6,307 13,701 20,048 0% 31% 68%
14 Giza 1,382 3,975 8,160 13,517 10% 29% 60%
10 Gharbia 3,753 2,688 5,574 12,015 31% 22% 46%
13 Ismailia 406 459 1,343 2,208 18% 21% 61%
3 Port Said 266 291 902 1,459 18% 20% 62%
20 Qena 2,742 1,291 2,765 6,798 40% 19% 41%
18 Asyout 2,805 1,519 3,750 8,074 35% 19% 46%
6 Dakahlia 4,860 2,612 6,894 14,366 34% 18% 48%
16 Fayoum 2,846 1,116 2,291 6,253 46% 18% 37%
11 Menoufia 3,536 1,715 4,452 9,703 36% 18% 46%
7 Sharkia 5,450 2,244 6,475 14,169 38% 16% 46%
23 Red Sea 28 83 444 555 5% 15% 80%
21 Aswan 882 368 1,302 2,552 35% 14% 51%
9 Kafr-El-Sheikh 2,888 977 3,044 6,909 42% 14% 44%
26 North Sinai 121 97 483 701 17% 14% 69%
27 South Sinai 21 25 138 184 11% 14% 75%
19 Suhag 3,603 1,183 4,099 8,885 41% 13% 46%
17 Menia 7,038 1,355 3,496 11,889 59% 11% 29%
12 Behera 10,455 1,884 4,880 17,219 61% 11% 28%
15 Beni suef 3,820 774 2,618 7,212 53% 11% 36%
25 Matrouh 15 68 638 721 2% 9% 88%
24 El-Wadi-El-Gidid 126 48 403 577 22% 8% 70%
22 Luxor 159 67 659 885 18% 8% 74%
Egypt 59,722 39,182 91,462 193,182 31% 20% 47%
Note: Code is the identical number of governorate used in CAPMAS.

Source: CAPMAS on the web, June 2007
A high share of the secondary sector is apparent in Alexandria, Suez, Kalyoubia, Damietta,
and Cairo, where the governorates’ secondary sectors account for more than 30% of the
employment of each governorate, and these are followed by Giza, Gharbia, Ismailia, and Port
Said.
An employment shift from agriculture/service sector to manufacturing suggests a high
potential for economic growth in the future because of the high productivity of manufacturing.
Those governorates are listed in Table 3.2.3 based on the data of 2004 and 2005. They are
similar to the governorates listed in Table 3.2.2, suggesting higher contribution to GDP.
Location of current and planned industrial estates is another determinant factor of future
economic growth by the governorate.
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Table 3.2.3 List of Governorates with Higher Growth of Manufacturing Sector

Category Governorates Remarks
Higher Expansion of Damietta (7%), Port Said (6%), more than 3% per year
Secondary Sector Kalyoubia (5%), Kafr-El-Sheikh (3%),
Steady Expansion of Cairo (2%), Alexandria (1%), Dakalia more than 0%
Secondary Sector (1%), Behera (1%), Giza (1%),
Note: Other governorates also show higher sectoral rate of secondary sector, and those are Red Sea
(6%), North Sinai (1%), and South Sinai (7%). However, their economic scale by
governorate is small, less than 100,000 employees as a whole. So, they are omitted from
this table.
Source: Statistical Yearbook 2005, Central Agency for Public Mobilization and Statistics (CAPMAS),
and CAPMAS web, June 2007.
3.2.3 Gross Domestic Product (GDP)

Formal growth rate figures of gross domestic product (GDP) are shown in Table 3.2.4. It
shows that the Egyptian economy had shifted from a stage where the economy was stagnating
to a more dynamic development stage after 2003/04, showing an accelerating growth rate year
by year; up to 6.9% in 2005/06. This reflects an expansion in the export and manufacturing
industries that has been induced by influx of foreign direct investment (FDI) and trade
promotion policies supported by the Ministry of Industry, and Ministry of Investment.
Table 3.2.4 GDP: Actual Performance in the Past
2001
Items 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06
-2006
Real GDP at Market
320 355 366 381 399 426 -
Price (LE billion)
Real GDP Growth
3.4 3.2 3.1 4.2 4.6 6.9 3.5%
Rate (%)
Source: Ministry of Planning, CAPMAS and calculation of Ministry of foreign Trade & Industry
The future GDP Growth rate was forecast by the Ministry of Economic Development
(previous Ministry of Planning) in drafting the Sixth-Five years Plan for Socio-economic
Development (2008-2012). This growth scenario sets an annual average growth rate of 9.3%
(primary sector: 5.3%, Secondary sector: 12.5%, and Tertiary sector: 8.0% annually, in 2006
constant prices). These rates are much higher than the actual performance i.e. 3.5% during
the period of 2000-2006 (2001/2002 current price) as a whole. The latest single year growth
rate of 6.9% for 2005/06 indicates a higher rate than that of the average figure for the period,
and shows the accelerated trend that is boosted by the manufacturing sector, mainly
manufacturing exports as shown in the growth rate by sector. However, an average growth
rate of 9.3% is extraordinary high compared with the previous years (4.6% and 6.9% in
2004/05, and 2005/06 respectively).
This suggests the need to set a more realistic scenario. The JICA Study Team adopts a
second scenario where the growth rate is 6.9%, being same as that in 2005/06 for the whole
period of 2007-2012. This allows for the trend to an accelerated growth rate; almost two
times higher than average of 3.5% between 2000/01-2005/06, and about three-quarters of the
planned figure in the growth scenario.
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Comparison of the two scenarios is shown in Figure 3.2.2 together with the growth trend
between 2000/01-2005/06.
Min. of Eco. Dev. Scenario

10.0%
9.0%
8.0%
JICA Study Team's Scenario
7.0%
6.0%
5.0%
4.0%
3.0%
Actual performance Forecast
2.0%
1.0%
0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Ministry of Economic Development and JICA Study Team

Figure 3.2.2 GDP Growth Rate: Actual Performance and Two Future Scenarios
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3.3 Freight Demand Forecast for Export and Import

To achieve a modern logistics system along with the development of export and import
industries, it is essential to understand the international trade conditions not only in the Eastern
Mediterranean Region but also in the world. In addition, it is essential to have knowledge of
freight flows from origin to destination within Egypt in order to identify main freight corridors,
bottlenecks and locations of required future logistics facilities in the transportation network.
Generally, international trade is discussed based on export and import values (monetary terms)
as indicators representing the economic performance of a country. On the other hand, export
and import volumes in terms of tons, TEU, or quantity are significant indicators for examining
logistics issues.
Most of the export and import commodities are transported from/to foreign countries via
Egyptian ports by sea transport. Less than 1% of the total export and import volumes in 2005,
according to the CAPMAS database, were transported by air via airports or land transport via
international borders. Considering the circumstances, the current export and import volumes
are mainly handled at the major Egyptian ports2. Since the “Statistical Book 2005” issued by
the Egyptian Maritime Data Bank provided sufficient and detailed data/information to analyze
export and import volumes, by commodity type and by country, it was used for basic data
together with the results of the interview surveys.
This section describes the results of analysis for current and future freight flows and volumes,
while the method of the future freight demand forecast is described in Appendix-3.
All the OD matrices estimated in the JICA Study reaches 144 (54 + 54 + 36) cases.
Appendix-3 contains some OD tables, and all OD matrices are stored in the digital form
(CD-ROM) attached to the supplementary document of the JICA Study Team. That is
entitled “The Demand Assignment System for Export and Import Freight Volume” and was
submitted to the Transport Planning Authority for the use in the future.
Table 3.3.1 All OD Matrices Prepared in the JICA Study
Commodity
Case Transport Modes Total Remarks
Types
Present
3 54
(Truck+ Railway+
Future (1)
Inland Waterways) 54
18 Types
Future (2) Rail Development Case.
2
36 Inland waterway OD is
(Truck+ Railway)
same as Future (1)
2
The major Egyptian ports include Alexandria Port, Dekheila Port, Damietta Port, Port Said Port (West), Port
Said Port （East), El-Arish Port, Suez Port, Adabiya Port, Sokhna Port, Safaga Port and Nowaiba Port.
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3.3.1 Current Freight Flows and Volumes between Egypt and the World
(1) Current Export and Import Flows and Volumes between Egypt and the World
By categorizing the countries into ten regions consisting of Arab Countries, Eastern
Europe, Western Europe, Asia, Africa, North America, Central America, South America,
Oceania and other countries in accordance with the region classification by CAPMAS
shown in Appendix-3, the export and import volumes between Egypt and the regions in
the world are illustrated in Figure 3.3.1. Table 3.3.2 shows the top 10 countries by
export and import volumes in 2005. The export and import volumes were 31.6 million
ton and 44.7 million ton in 2005, respectively.
In terms of export, Egypt was strongly related to Western Europe and Arab countries. In
the region, Spain, Italy, Saudi Arabia and Syria show higher export volumes, of which the
main commodities are cement, gaseous hydrocarbon and manufacturing goods. Since
the United States is included in the top 10 countries for both export and import, it is an
important trade partner for Egypt.
Of all regions, in terms of import, Eastern Europe shows the strongest relationship with
Egypt. The main commodity is wheat. Russia, Ukraine and Turkey are identified as
the main trade partners in Eastern Europe. China was ranked 14 for import and 16 for
export in 2005.
Considering Figure 3.3.1 and Table 3.3.2, Egypt is mainly connected with Western Europe
and Arab countries for export, while various countries and regions are the trading partners
of Egypt for import. By promoting export industries, Egypt is expected to strengthen the
relationship with current export countries and to explore other countries as new markets.
Eastern Eastern
Western Western
North America Europe North America Europe
Europe Europe
10
7,
00
0
,2
30
,80
3,900 3,100
00
4,5
1,70
11
0 8,30 Asia
8,700 Asia 0 4, 300
Arab Arab
Central America 0.03 Central America 300
Countries Countries
900 800
30
0.
0.08 6 00 1,60
Africa 6, Africa 0
0.
South America South America

50
40
Others Oceania Others Oceania
Unit: thousand ton Unit: thousand ton
Export Import
Source: Worked out by JICA Study Team based on Statistical Book 2005, Egyptian Maritime Data Bank
Figure 3.3.1 Export and Import Volumes (Unit: Thousand Ton)
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Table 3.3.2 List of Top 10 Countries of Export and Import Volumes in 2005
(Unit: thousand ton)
Export Import
Rank
Country Name 1,000 ton % Country Name 1,000 ton %
1 Spain 3,761 12 United States 6,707 15
2 Italy 3,053 10 Russia 4,617 10
3 Turkey 1,932 6 Brazil 3,641 8
4 Saudi Arabia 1,797 6 Ukraine 3,318 7
5 Syria 1,725 5 Argentina 2,906 7
6 United States 1,348 4 Italy 1,644 4
7 Sudan 1,239 4 Canada 1,540 3
8 Jordan 997 3 Australia 1,494 3
9 Yemen 897 3 Belgium 1,136 3
10 Lebanon 805 3 Turkey 1,131 3
- Others 14,074 44 Others 16,554 37
Total 31,627 100 Total 44,688 100
Source: Statistical Book 2005, Egyptian Maritime Data Bank
(2) Current Export and Import Container Flows and Volumes between Egypt and the
World
General cargo and dry/liquid bulk cargo are generally handled at each port adjacent to
production or consumption area of the hinterland. Container cargo is comparatively easy
to change from the one port to another in accordance with intentions or requests of
shippers or shipping companies. Container movement between Egypt and the world
provides information about the allotment of containers among the Egyptian ports.
Figure 3.3.2 illustrates the export and import container volumes between Egypt and the
regions. Table 3.3.3 shows the top 10 countries for export and import container volumes
in 2005. Main origin and destination were Western Europe and Asia. Italy and China
were the major export and import partners for container cargoes in Western Europe and
Asia, respectively. The container movement between Egypt and China was more active
than bulk cargoes.
Alexandria & Dekheila Ports handled 90% of the container cargoes exported/imported
to/from Italy. This state can be explained by the proximity of Alexandria & Dekheila
Ports to Italy and that they are calling ports for the weekly shipping service between Italy
and China (using 7 vessels with a round-trip of 49 days). On the other hand, Sokhna
Port handled 60% of the container cargoes exported/imported to/from China. Since
Sokhna Port is the sole port with modern handling facilities in Red Sea, it is expected to
handle more container cargoes from/to China and the other Asian countries.
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Eastern Eastern
Western Western
North America Europe North America Europe
Europe 1 Europe 2
97 2
2
216 188
59
53
40 Asia 52 Asia
128 48
Arab Arab
Central America 0.89 Countries Central America 0.26 Countries
17 7
3 21
Africa 2 Africa 4
2
Others Oceania Others Oceania
Unit: thousand TEU Unit: thousand TEU
Export Import
Note: The major Egyptian ports for container cargoes includes Alexandria Port, Dekheila Port, Damietta
Port, Port Said Port (West), Port Said Port (East) and Sokhna Port.
Figure 3.3.2 Export and Import Container Volumes (Unit: Thousand TEU)
Table 3.3.3 List of Top 10 Countries of Export and Import Container Volumes in
2005
(Unit: TEU)
Export Import
Ran
k Country Name TEU % Country Name TEU %
1 China 89,303 15 Italy 81,954 14
2 Italy 57,209 10 China 70,099 12
3 Belgium 38,529 6 Belgium 48,442 8
4 United States 36,413 6 United States 45,280 8
5 Singapore 26,713 4 Turkey 26,580 4
6 Turkey 26,512 4 Germany 23,150 4
7 United Kingdom 25,609 4 Spain 22,328 4
8 Saudi Arabia 24,274 4 India 18,312 3
9 Syria 23,595 4 South Korea 17,275 3
10 Spain 20,217 3 Brazil 15,729 3
- Others 298,435 50 Others 230,156 38
Total 664,675 100 Total 597,320 100
(3) Current Transhipment Container Flows and Volumes via Egyptian Ports
The geographic location of Egypt makes the transhipment containers a profitable business
for terminal operators, although it has little impact to export and import industries and the
national economy.
The inbound and outbound transhipment container volumes at major Egyptian ports were
2.4 million TEU in 2005, of which 97% was handled at Port Said, Port East & West and
Damietta Port. As shown in Figure 3.3.3, substantial transhipment volumes are observed
between Egypt and Asia. The Egyptian ports play the role and function as hub ports
among Arab, European, and Asian countries. On the other hand, the Egyptian ports
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handle few transhipment containers from/to North, Central & South America.
Table 3.3.4 shows the top 10 countries for transhipment container volumes in 2005.
Turkey was high ranking with both inbound and outbound volumes, as were some of the
Asian and European countries.
Eastern Eastern
Western Europe Western Europe
North America North America
Europe 504 Europe
422
284
248
23
19
1
5
18 Asia 3 Asia
Arab Arab
Central America 0.56 228 Central America 0 245 Countries
Countries
5 0.99
0 1
0.9 0. 5 0.5
0.4 Africa 1
Africa 6
0
0
Oceania Others Oceania
Others
Unit: thousand TEU Unit: thousand TEU
Inbound Outbound
Figure 3.3.3 Transhipment Container Volumes (Unit: Thousand TEU)
Table 3.3.4 List of Top 10 Countries of Transhipment Container Volumes via Egypt in 2005
(Unit: TEU)
Inbound Outbound
Rank
Country Name TEU % Country Name TEU %
1 Malaysia 133,651 11 Turkey 168,756 15

2 Turkey 118,072 10 Israel 127,524 11
3 Israel 115,484 9 Egypt 118,263 10
4 Egypt 104,125 8 China 80,346 7
5 China 85,074 7 Syria 66,360 6
6 Cyprus 70,525 6 Italy 60,278 5
7 Syria 62,457 5 Malaysia 51,954 5
8 Italy 61,163 5 France 48,609 4
9 Sri Lanka 47,007 4 Greece 41,792 4
10 Spain 38,118 3 Cyprus 37,968 3
- Others 400,788 32 Others 349,371 30
Total 1,236,464 100 Total 1,151,221 100
Note: Total figures of “Inbound” and “Outbound” are different in the table: however, these are
the formal figures appeared in the data source below. Difference is statistical errors, and
is kept as they are.
In order to classify the transhipment container movement with focus on the Mediterranean
Region and Suez Canal, seven sub-regions can be classified as shown in Table 3.3.5.
Based on the sub-region classification, the inbound and outbound transhipment container
movements are illustrated in Figure 3.3.4.
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Considering the high transhipment volumes by country in Table 3.3.4 and the strong
interrelationship between Egypt and Middle East in Figure 3.3.4, the Egyptian ports (Port
Said Port East & West and Damietta Port) serve transhipment containers from/to Turkey,
Syria, Cyprus and Israel as a main gate to connect with Asia – Europe route.
With regard to East-Europe and Black Sea sub-regions, the transhipment container
volumes through the Egyptian ports are significantly low. This may be due to
transhipment by other competitive ports such as Gioia Tauro Port in Italy.
The transhipment container volume through Suez Canal from south to north is higher than
that from north to south. This tendency corresponds with the total cargo volumes
through Suez Canal by direction in recent years.
Table 3.3.5 Sub-Region Classification

Sub-Region Country
West-Europe France, Italy, Spain, Malta
Greece, Slovenia, Croatia Bosnia & Herzegovina, Serbia,
East-Europe
Montenegro, Albania
Black Sea Ukraine, Romania, Bulgaria, Russia, Georgia
Middle East Turkey, Cyprus, Syria, Lebanon, Israel
North-Africa Algeria, Tunisia, Morocco, Libya
Countries through Suez Arab, Asian, East & South African and Oceania countries
Canal
Other Countries Other European, North, Central & South American and West African
countries
Black Sea Black Sea

West-Europe West-Europe
East-Europe East-Europe
111 Middle East 53 Middle East

28
42
Other 143 Other 1 51

387
424
Countries Countries
29 31
1 1
North Africa North Africa

33
43
2
3
Countries through Countries through

Unit: thousand TEU Suez Canal Unit: thousand TEU Suez Canal
C i
Inbound Outbound
Note: Some shipping services between Egypt and West-Europe are operated through the Strait of
Gibraltar.
Figure 3.3.4 Transhipment Container Volumes by Sub-Region
3-23
FINAL REPORT
3.3.2 Current Freight Flows and Volumes in Egypt

(1) Export and Import Volumes by Handling Type
In 2005, export and import volumes at the major ports in Egypt reached 31.6 million tons
and 44.7 million tons respectively. Of the total exports, 39% was exported from the
Great Alexandria Port (Alexandria & El-Dekheila Port), which is the highest, followed by
Damietta Port, which has a share of 27%. Regarding imports, 63% are imported at the
Great Alexandria Port, which is the highest, followed by Damietta Port, which has a share
of 20%.
As shown in Table 3.3.6, dry bulk is the highest for both export and import followed by
general cargo. The share of container is about 15% for both export and import, which
are mainly handled at Great Alexandria Port, Damietta Port, Port Said Port and Sokhna
Port.
Table 3.3.6 Handled Local Cargo(*) at Egyptian Ports in 2005
(Export) (Unit: 1000 ton/year)
General Dry Liquid Special
Port Container Total Share
Cargo Bulk Bulk Cargo
Alexandria &
1,905 3,702 4,163 2,195 216 12,181 38.5%
El-Dekheila
Damietta 872 3,410 182 778 3,124 8,366 26.5%
Port Said & East
56 197 23 806 2 1,084 3.4%
Port Said
Suez & Adabiya 1,059 1,757 0 30 60 2,906 9.2%
Sokhna Port 583 1,222 0 793 0 2,598 8.2%
El-Arish 1 1,482 0 0 0 1,483 4.7%
Safaga 233 1,216 6 0 29 1,484 4.7%
Nuwaiba &
468 999 0 0 58 1,525 4.8%
Others
Total 5,177 13,985 4,374 4,602 3,489 31,627 100.0%
Share 16.4% 44.2% 13.8% 14.6% 11.0% 100.0% -
(Import) (Unit: 1000 ton/year)

General Dry Liquid Special
Port Container Total Share
Cargo Bulk Bulk Cargo
Alexandria &
8,382 11,736 705 4,265 3,074 28,162 63.0%
El-Dekheila
Damietta 2,373 5,001 15 684 972 9,045 20.2%
Port Said & East
33 1,116 155 758 8 2,070 4.6%
Port Said
Suez & Adabiya 1,946 93 6 25 1,078 3,148 7.0%
Sokhna Port 3 5 12 823 0 843 1.9%
El-Arish 0 8 0 0 0 8 0.0%
Safaga 67 1,107 19 0 112 1,305 2.9%
Nuwaiba &
97 8 0 0 2 107 0.2%
Others
Total 12,901 19,074 912 6,555 5,246 44,688 100.0%
Share 28.9% 42.7% 2.0% 14.7% 11.7% 100.0% -
(*) Transit Cargo is not included.
Source: Statistical Yearbook 2005, Egyptian Maritime Data Bank (EMDB)
3-24
FINAL REPORT
(2) Export and Import Volumes by Commodity Type

By commodity type, the most exported commodity is cement, which has a share of 26%,
followed by gaseous hydrocarbons, which has a share of 11%. For imported
commodities, wheat occupied the top position (14%), closely followed by maize, which
has a share of 12%. The share of other commodities (referred to as “others”) is 38% for
export and 41% for import.
Table 3.3.7 Top 9 Cargos(*1) at Egyptian Ports in 2005

(Unit: 1000 ton/year)
Export Import
Rank
Commodity Type Volume Share Commodity Type Volume Share
1 Cement 8,234 26.0% Wheat 6,266 14.0%
Gaseous
2 Hydrocarbons, Liquid 3,340 10.6% Maize 5,282 11.8%
or Compressed
Phosphates, Crude, Other Basic
3 1,794 5.7% 4,680 10.5%
Natural Chemicals(*2)
Railway or Tramway
Sleepers of Woods and
4 Gasoline 1,357 4.3% 2,048 4.6%
Other Wood Roughly
Squared, Half Squ
5 Salt, Crude or Refined 1,238 3.9% Iron ore and Concentrates 2,028 4.5%
Oil-seed Fats, Oil nuts and
6 Rice 1,071 3.4% 1,722 3.9%
Oil Kernels
Sand for Industrial Gaseous Hydrocarbons,
7 973 3.1% 1,644 3.7%
Use Liquid or Compressed
Building and Pig iron, Spiegeleisen and
8 Monumental Stone, 925 2.9% Carburized 1,486 3.3%
Unworked Ferro-manganese
Animal and Vegetable Fats
Semi-finished Rolled
9 560 1.8% and Oils, and Products 1,314 2.9%
Steel Products
Derived Therefrom
10 Others(*3) 12,135 38.4% Others(*3) 18,218 40.8%
Total 31,627 100.0% Total 44,688 100.0%
(*1): Transit Cargo is not included.
(*2): Other basic chemicals include a large group of chemicals such as, e.g., plastics, fibers, resins, and
dyestuffs - and the industrial chemicals.
(*3): “Other manufactured goods, which are not classified according to type” is in 3rd place for export
and by 4th place for import in the Statistical Yearbook 2005, but this can’t be classified as one of
commodity type. Therefore, this is handled partially of “Others”.
Source: Statistical Yearbook 2005, EMDB
(3) Export and Import Volumes by Commodity Type by Major Port

Table 3.3.6 shows export and import volumes by handling type at each port, while Table
3.3.7 shows only the total of export and import volumes. Export and import volumes by
commodity type at each port were estimated from these tables based on the assumption
that the share of each port by handling type was the same for all commodity type. To
calculate this estimation, it was necessary to assume the composition of the handling types
for each commodity. Table 3.3.8 shows the handling types by commodity type. Export
and import volume by handling type were estimated for each commodity type from the
table.
3-25
FINAL REPORT
Table 3.3.8 Relation between the Handling Types and the Commodity Types in 2005
(Export)
Volume
Dry Liquid Conventional
Rank Commodity (1000
Bulk Bulk Cargo (*)
ton/year)
1 Cement 8,234 97% 3%
Gaseous Hydrocarbons, Liquid or
2 3,340 100%
Compressed
3 Phosphates, Crude, Natural 1,794 100%
4 Gasoline 1,357 76% 24%
5 Salt, Crude or Refined 1,238 100%
6 Rice 1,071 97% 3%
7 Sand for Industrial Use 973 100%
Building and Monumental Stone,
8 925 100%
Un-worked
9 Semi-finished Rolled Steel Products 560 100%
10 Others 12,135 100%
Total 31,627 13,986 4,374 13,267
(Import)
Volume
Dry Liquid Conventional
Rank Commodity (1000
Bulk Bulk Cargo (*)
ton/year)
1 Wheat, Spelt and Muslin 6,266 100%
2 Maize 5,282 100%
3 Other Basic Chemicals 4,680 86% 14%
Railway or Tramway Sleepers of
4 Woods and Other Woods Roughly 2,048 100%
Squared, Half Squ
Iron ore and Concentrates; except
5 2,028 100%
Roasted Iron Pyrites
Oil-seed Fats, Oil Nuts and Oil
6 1,722 53% 47%
Kernels
7 1,644 100%
Compressed
Pig Iron, Spiegeleisen and Carburized
8 1,486 100%
Ferro-manganese
Animal and Vegetable Fats and Oils,
9 1,314 100%
and Products Derived There from
10 Others 18,218 100%
Total 44,688 19,074 912 24,702
(*) Conventional cargo consists of “General cargo”, “Container” and “Special cargo”.
Source: Estimated by JICA Study Team based on the data from EMDB.
Export and import volumes by commodity type each port were calculated as following
formula, and the result is summarized in Table 3.3.9.
V pc = ∑ (Z ch × w ph )
h
where, Vpc = Export/Import volume of commodity type c at port p,
Zch = Export/Import volume of commodity type c by handling type h, and
wph = Share of port p by handling type h.
3-26
FINAL REPORT
Table 3.3.9 Export and Import Volumes by Major Port and Commodity Type in 2005
Hydro Steel
Port Cement Phosphates Gasoline Salt Rice Sand Stone Others Total
Carbons Products
Alexandria &
2,193 3,180 475 1,089 328 285 257 245 182 3,947 12,181
El-Dekheila
Damietta 2,033 139 438 159 302 264 237 226 201 4,367 8,366
Port Said
128 17 25 27 18 17 14 13 37 788 1,084
East & West
Suez &
1,025 0 225 28 155 133 122 116 49 1,053 2,906
Adabiya
Sokhna Port 723 0 157 33 108 94 85 81 58 1,259 2,598
El-Arish 850 0 190 0 131 111 103 98 0 0 1,483
Safaga 701 4 156 8 108 91 85 80 11 240 1,484
Nuwaiba &
581 0 128 13 88 76 70 66 22 481 1,526
others
Total 8,234 3,340 1,794 1,357 1,238 1,071 973 925 560 12,135 31,627

Other Railway Oil Animal and
Iron Hydro Pig
Port Wheat Maize Basic Sleepers Seed Vegetable Others Total
Ore Carbons Iron
Chemicals of Woods Fats fats
Alexandria &
3,855 3,250 2,894 1,304 1,247 1,221 1,046 914 836 11,596 28,163
El-Dekheila
Damietta 1,643 1,385 1,161 334 531 147 268 390 214 2,972 9,045
Port Said
366 309 256 66 119 181 53 87 43 590 2,070
East & West
Suez & Adabiya 30 26 102 253 10 106 203 7 162 2,248 3,147
Sokhna Port 2 1 23 68 1 39 55 0 44 609 842
El-Arish 3 2 2 0 1 0 0 1 0 0 9
Safaga 364 307 238 15 118 25 12 86 10 132 1,306
Nuwaiba &
3 2 4 8 1 3 7 1 5 72 106
Others
Total 6,266 5,282 4,680 2,048 2,028 1,722 1,644 1,486 1,314 18,218 44,688
Source: Estimated by JICA Study Team based on the data from EMDB
(4) Export and Import Volumes by Transport Mode

Table 3.3.10 shows the transport modes used for export and import. The volume
transported by railway and inland waterway is obtained by analyzing the operation data of
ENR and RTA in 2005. The volume transported by trucks is calculated by deducting the
volume transported by railway and inland waterway from the total volume. As seen in
the same table, trucks have the dominant role and captured around 91% with the
remaining 9% shared by railway and IWT.
Table 3.3.10 Export and Import Volumes by Transport Mode in 2005
Mode Export Import Total Share
Railway 1,944 4,923 6,867 9.0%
Inland Waterway 46 199 245 0.3%
Truck 29,637 39,566 69,203 90.7%
Total 31,627 44,688 76,315 -
Source: Calculated by JICA Study Team based on the data from EMDB, ENR and RTA data.
3-27
FINAL REPORT
(5) Freight Movement of Export and Import in Egypt

To analyze the freight movement of export and import in Egypt, Origin – Destination
(OD) Matrices by commodity type and transport mode were estimated by identifying the
origin and destination of exported and imported commodities in Egypt. In case of export,
an origin is the starting point of a transport for export while a destination is the port where
the transported commodities are exported. On the other hand, an origin of a transport for
import is the port where the transported commodities are imported and a destination is the
end point of the transport.
The OD matrices of railway and inland waterway were estimated form the ENR’s and
RTA’s operation data. On the other hand, the OD matrices of truck were estimated from
various sources and assumptions. Production and consumption data in “A Study on the
Development of the Master Plan for Freight Organization at National Level (Technical
Consultant Bureau, June 2005)” was the major source and the result of the Shipper Survey
was used. To make the OD matrices of truck, the total exported volume from each origin
and the total imported volume to each destination were estimated. After that, gravity
model and Fratar Method3 were applied to estimate the volumes of each OD pair. The
detail process of making OD matrices are described in Appendix-3.
The followings are the estimated transport flow of major commodity types.
a) Cement
Cement is the prime export commodity of Egypt and 8.2 million tons of cement is
exported; mostly transported by trucks. The largest volume of cement is exported
from Sokhna Port followed by Suez Governorate, Damietta Port and Alexandria Port
with volumes of 0.9, 0.8, 0.7, 0.5 million tons respectively. Some is generated from
Asyout and others as shown in Figure 3.3.5.
b) Gaseous Hydrocarbon
Gaseous hydrocarbon is a general term for various organic chemical compounds of
carbon and hydrogen such as methane, ethylene, acetylene, etc. Export and import
volumes of gaseous hydrocarbons in year 2005 were 3.3 million tons and 1.6 million
tons respectively and ranked in 2nd and 7th place respectively. It can be presumed
that the different kinds of gaseous hydrocarbons are transported via trucks. Most of
them are exported and imported at Alexandria Port and mainly delivered to and from
Cairo Governorate and surrounding industrial zones as well as Alexandria
Governorate as depicted in Figure 3.3.6.
3
This method is used to extrapolate trip distribution on the basis of growth factors for both the origin and the destination.
3-28
FINAL REPORT
Damietta
Damietta
Damietta
Damietta
Damietta
Damietta
238
238
238
238
238
238
452
452
452
452 Port
Port
Po rt Said
Said
Said
421
421
421
421
421
421
Alexandria
Alexandria
Alexandria
Alexandria
516
516
516
516 660
660
660
660
660
660
334
334
334
334
334
334 109
109
109
109
298
298
298
298
298
298
257
257
257
257
236
236
236
236
236
236
861 Suez
861
861
861
861 Suez
Su ez
Suez
Suez
154
154
154
154 795
795
795
795
So khna
So khna
Sokhna
Sokhn a 176
176
176
176
176
176
121
121
121
121
121
121 Po rt
Portrt
Port
362
362
362 Po
362
362
362
333
333
333 174
174
174
174
151
151
151
151
151
151
122
122
122
217
217
217
217
Safaga
Safaga
Safaga
Safaga
Unit: 1,000 ton/year
Major movement (over 100,000
ton/year) is displayed.
Source: Estimated by JICA Study Team

Figure 3.3.5 Cement Export Flow in 2005 (Truck)
Damietta
Damietta
Damietta
Damietta
Damietta
Damietta
1,189
1,189
1,189
1,189
1,189
1,189 Po
Port
Port
Po rt Said
Port
Port
rt Said
Said
Said
Said
Alexandria
Alexandria
Alexand
Alexand ria
Alexandria
Alexandria
ria 112
112
112
112
741
741
741
741
741
741
616
616
616
616
616
616
678
678
678
678
678
678 264
264
264
264
264
264
Suez
Suez
Suez
Suez
Suez
Suez
So
Sokhna
Sokhn
So khnaa
Sokhna
Sokhn
khnaa
Po
Port
rt
Port
Po
Port
rt

Figure 3.3.6 Gaseous Hydrocarbon Export & Import Flow in 2005 (Truck)
c) Phosphates
Egypt exports 1.8 million tons of phosphates a year. They are mainly produced in
Qena Governorate and most of them are transported by railway to Safaga Port.
Those volumes handled by trucks are mainly delivered to the major ports of Egypt as
illustrated in Figure 3.3.7.
3-29
FINAL REPORT
Damietta
Damietta
Damietta
Damietta Damietta
Damietta
Damietta
Damietta
Alexandria
Alexandria
Alexandria
Alexandria
Alexandria
Alexandria Port
Port Said
Said Alexandria
Alexandria
Alexandria
Alexandria Port
Port
Port Said
Port Said
Said
Said
245
245
Suez
Suez
Suez
Suez
Suez
Suez Suez
Suez
Suez
Suez
Suez
Suez
Sokhna
Sokhna
Sokhna
Sokhna
Sokhna
Sokhna 107
107 Sokhna
Sokhna
Sokhna
Sokhna
Sokhna
Sokhna
256
256 Port
Port Port
Port
123
123
130
130
Safaga
Safaga
Safaga
Safaga
Safaga
Safaga Safaga
Safaga
Safaga
Safaga
Safaga
Safaga
28
28
Unit: 1,000 ton/year Unit: 1,000 ton/year 762

762
Major movement (over Major movement (over
100,000 ton/year) is 100,000 ton/year) is
displayed. displayed.
(Truck) (Railway)
Figure 3.3.7 Phosphates Export Flow in 2005
d) Wheat
Egypt imports 6.3 million tons of wheat a year, which is the highest volume among
the imported commodities. Trucks transport 5.0 million tons and the remaining 1.3
million tons is transported by railway. The major ports for the import are Alexandria
Port and Damietta Port. As seen in Figure 3.3.8, wheat arriving at Damietta Port is
mostly transported by railway. Wheat at the Alexandria Port on the other hand is
mostly carried by trucks. For instance, 1.8 million tons of wheat is transported from
Alexandria Port to Cairo Governorate by trucks and 0.5 million tons are transported
from Damietta Port to Cairo Governorate by railways.
e) Maize
Egypt imports 5.3 million tons of maize, which is ranked in 2nd place. The major
import port is Alexandria Port followed by Damietta Port. 1.0 million tons of maize
is delivered to Cairo Governorate and 0.6 million tons are to Alexandria Governorate.
Besides the 0.2 million tons of maize from Alexandria Port, 0.1 million tons of maize
is delivered to Qena Governorate from Safaga Port.
3-30
FINAL REPORT
Damietta
Damietta
Damietta
Damietta DD
DDamietta
amietta
amietta
amietta
ndria
ndria
ndria
ndria Port
Port
Port Said
Said
Said ndr
ndr
nndr
ndr
n ia
dria
ia
dria
ia
ia
Port
Port
Port Said Port
Por Said
Portt Said
Said
149
149 25
25
25
27
27
27 12
12
107
107
117
117
417
417
417
417 479
479
202
202 63
63
63
20
20
20
1,799
1,799 20
20
20
353
353
353
353 Suez
Suez
Suez
Suez
Suez
Suez 74
74 Suez
Su
Suez
ez
Suez
Su
Suez
ez
Sokhna
Sokhna
Sokhna
Sokhna 19
19
19 Sokhna
Sokh
Sokhn
Sokhna
Sokh
Sokhn na
naa
a
Port
Port
Port 12
12
12 Po
Port
rt
Port
Po
Po rt
rt
13
13 20
20
20
139
139
19
19 12
12
12
15
15
13
13
13
117
117
117
117
Safaga
Safaga
Safaga
Safaga Safaga
Safag
Safagaa
Safaga
Safag
Safagaa
Major movement (over 100,000 Unit: 1,000 ton/year
ton/year) is displayed. Major movement (over 100,000 ton/year)
is displayed.
(Truck) (Railway)
Figure 3.3.8 Wheat Import Flow in 2005
Damietta
Damietta
Damietta
Damietta
Damietta
Damietta
A
Alexandria
Alexandria
Alexandria
Alexandria
Alexandria
lexandria 144
144
144
Port Said
Port Said
Said
575
575
575
575
575
575 104
104
104
104
196
196
196
196
196
196
125
125
125
125
114
114
114
114
107
107
107
107
282
282
282
282
385
385
385
385
385
385
986
986
986
986
986
986
209
209
162
162 Suez
Suez
Suez
Suez
Suez
Suez
Sokhna
Sokhna
Sokhna
Sokhna
Port
Port
Port
Unit: 1,000 ton/year Safaga

Safaga
Safaga
Safaga
108
108
108
108

Figure 3.3.9 Maize Import Flow in 2005 (Truck)
f) Other Basic Chemicals

For the other basic chemicals, 4.7 million tons is imported into Egypt, making it the
third most imported commodity category in terms of volume. Out of which, 4.6
3-31
FINAL REPORT
million tons are transported by trucks, and the remaining 0.1 million ton is shipped
via inland waterway. The destination of those arriving at Alexandria Port, which
receives a volume of 2.5 million tons, is the Alexandria Governorate. Commodities
arriving at Damietta Port, which total 0.3 million ton, are delivered to the Damietta
Governorate. The industrial city of 10th of Ramadan received 0.3 million tons from
Damietta Port, as shown in Figure 3.3.10.
Damietta
Damietta
240
240
240
240
240
240 Port
Port
Port
Port
Port Said
Said
Port Said
Said
Said
Said
Alexandria 2,482
Alexandria 2,482
2,482
2,482
2,482
2,482 342
342
219
219
219
219
219
219
142
142
125
125
125
101
101
101
101
101
101
Unit: 1,000 ton/year Suez

Suez
Suez
Suez
Suez
Suez

Sokhna
Sokhna
P
P tt
Figure 3.3.10 Other Basic Chemicals Import Flow in 2005 (Truck)
(6) Current Traffic Volume by Transport Mode

Figure 3.3.11, 3.3.12 and 3.3.13 show the current traffic volume of export and import on
the major networks of each transport mode. They were estimated by assigning of the
OD matrices.
a) Truck
The traffic volume of export and import is largest on the road in the east side of
Alexandria Port with 25 million tons. A volume of 17 million tons of commodities
is transported on the Damanhur – Alexandria section through Cairo Alexandria
Agriculture Road, and 11 million tons is transported through the length of the Cairo –
Alexandria Desert Road. The traffic volumes on the Cairo – Damietta Agriculture
Road and Ismailia - Port Said Road are 10 million tons and 5 million tons respectively.
Along the corridor between Cairo and Upper Egypt, 11 million tons is transported by
road. The traffic volume is 5 million tons on the road between Cairo and Suez.
b) Railway
The railway section transporting the largest volume of export and import is around
Cairo, and 4 million tons is transported annually. Focusing on directions, the traffic
volume between Cairo and Alexandria is 3 million tons while between Giza Rural
area and Cairo, the traffic volume is 2 million tons.
Transport between Cairo and Suez Port - Sokhna Port is made via Zagazig – Ismailia
because there is no direct freight railway connection at the moment. Consequently,
the transport volume between Zagazig and Ismailia is particularly large totaling 2
million tons.
3-32
FINAL REPORT
c) Inland Waterway
Transported volume by inland waterway between Alexandria Port and Cairo is less
than 0.1 million ton and between Alexandria and Upper Egypt is much less. There
is no transport by inland waterway through Damietta Branch at present. Completion
of the on-going works by RTA is expected to activate this IWT route.
11,,5
1 ,,,5
,5
55
55522
22
,5
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55552 1111,,,,55555 Damietta
Damietta
Damietta
11
1 ,,5
1,,5 55222
22
5555522 77
776667
1111,,,55 9999,,,, 444,,,,3333
999444
52
22
7777
2222 555
55 2
11,,,55
77666
1
Alexandria 25555,,,,222288
999,,, 7
Alexandria
Alexandria Port
Port Said
Port Said
77
117
22 91
11
,559
99 1
,21
11,5,,5,5
,5
4,2
16
11 1 11
1111,,,,55
8888 1 6,,,,77
66
7000
44
55999911
1
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559999
4
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21
4,217
4,217
774
11,,77
4,217
3
33
22
111,,,,55
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111
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,3
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1
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9,,,,5
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88,,,,77
882
99
9
1
1100,
11444 1,429
1,42
1,42
1,429
1,429 9
99 1,388
1,388
1,388
1,388
9
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1,42
1,42
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4
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4,217
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844
8244
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884444
666,,,99
7
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7,6
33
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3300
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41
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4 55
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44
6 0
0000 66,,,0000999955 1111,,,,111133
,0
,04
,0
,04
,04
,048
3,2
3,2
3,28
3,28
9
99
3,2
3,28
3,280
11110000,,7 55
339
8
88
888
,048
48
48
,,779993 33
8
88
33
13,04
11 655
65
665
8
80
,,
1111,,11 66
6 6
65
65
80
80
80
80
33
6666
00
11110000
13
13
13
,,,,77799 955
955
955
955
3333,,22
993333
50000
55
33,,,,5
8800
2,1
2,1
2,
2,
2, 33
33
33
7
77
2,113
2,113
13
33
3333 5,
33 5
77
5,33
5,
665
665
331
33 55,3
665
665
5,33 ,33 111,,,,55
7711
33 1 5,
11 55
55,,3
,3
5,333
33
,3
,3
,3 31
31
31 3311 55
11
922
11
31
31
31 55,,,33 11,,,,5 5555533
799
333331 55
55 53
55 33
77
88885555 00 2222,,,,8 11 33 1
1
5555,,,,3333 0 88444455
5 3,
3,3
3,3
3,3
3,
3, 32
32
32
33 33
33
33
,45533 22
9
99
,4 Suez
Suez
49
11,4
5
55
44
3,94
3,9
3,94
3,94
3,94
44
35
3,94
3,9
3,94
,,,4
44
33
33,,4,4
2221111
33,,,,3
3
3333332
1111,,,,002
0
00
40
3
40
40
44
0
00
33
3
0
994
3
33
LEGEND
22
3,,33
355
,9
,,9
33
33
,,9
33,9
322
3
33,,,,99 3,940
3
1
11
4
44
21
40
35
Sokhna
Sokhna
22
35
35
00 3,940
35
35
Sok hna
02
40
4000
00
,,,0
00
466
66
1,,0,0
94
94
94
94
466
94
94
94
94
3,940
,9
94
94
3,940
,9
94
94
11
3,940
>= 10,000
99
3,,9
1
469
,9 Port
Port
Port
3,
46
,9
3,
3,
46
6,46
3333555
2,
2,
3
2,
2,
2,
2,
2
2
1,
1,
1,
1,
6,
1,02
6,
6,
6,
6,
>= 5,000
02
02
02
021
3,940
3,940
1
211
11
3,940
3,940
22
>= 1,000
02
3335555
,,,,,0
00
00
1,0
11 0
< 1,000 4
44,5
,5
0
00
,50
0
7
22277
0055
3333555
99444400
0
333,,,99

555
35
3
335
3
35
550000
55
5
444,,, 5
8886666
4,505
4,505
7777,,,,558
27
22
2 7
77
35
35
35
5
Figure 3.3.11 Current Traffic Volume by Truck
3-33
FINAL REPORT
Dam
Damie
Damietta
ietta
tta
76
76
7
7
76 99
69
69
7669
99
0 000
00 00 00 0
00 0 00
00 00
0 00
999
Alexandria
Alexandria
Ale xandria 18
71188
8 11
6881 Port
Port
Port Said
Said
777666
7
77 66
0
00
6
0000
0
33
777711
73
77
887 00 00 00
118888
46
66
46
46
46
000
46
46
771
7 18
11
2,74
0
00
2,74
88
2,74
888888 0
2,7
2,7
88877773333
22,,6
2,7
2,7
66622222 00
0
,6
,,6
,6
66444
0022
022 22 888888
110 88
681
160
160
333
160
681
0222
44
0
00
222,,,66
160
160
885 00
0
110
1100 55
5
77722
0 0
664444
110022
00
4444
85
85
85
1
85
85
110
00
02
22
2 10
1022
10
10
10
10 2,64
2,6444
2,644
2,64
2,64 4 22
2,64
22,,6666 111155555555
24444
6222
62
62
77722
4444 62
62
62
1111 333366
6
1155
681
681
681
1 681
77
77
77
779
77
77 9 77
99
55
666688
77777799
2222,,,66
66
881111
11166
6
66
99
664444
60
00
03
81
11
444
6811
1
11
33
1
3
68
68
68
68
33 93
33
68
68
333 559
99 3
33 333 593
1,59 33 11,5,5
6
1
11 59
59 11,,5
,,5
1 1111,,,,44 , 559999
1,
1,
1,
1, 59
6
66
111,,55
60
0033
11,,,,2
0
00
00
2200033
0
33
44
602
602
6666555544
602
602 60
2,644
2,644
2,644
2,644
444
0
00
666555
0 00 22,,,66
1,203
1,203
1,203
1,203
60
00
60
60
11
1
60
602
,,,,2
1,,2 22
2 00
20 33
033
22
2 1,2
0
00
00
0
1,2
64444 4
0
11,,,22
1,2
1,256
00 00
00 0
00
44
0 00
00
220033
56
00
56
56
1,256
1,256
56 0
1,256
1,256
3
0000
00
0000
0
3399 Suez
Suez
22,,0033 2,040
2,040 Sue z
3,0
3,0
3,08
3,0
3,0
3,08
3,08
77
777
4
44
47
447
77
777
88
88
4
88
88
88
88
48
48
88
48
48
88 ,,004
04
04
04
LEGEND
,0,0
,0
11,,0
4444777777
77
11,
11,0
8 1,
11
,,0
,004488
4488
488
Sokhna
Sok
Sokhna
hna
04
04
04
04
04
04
477
477
477
477
1,
1,
1,
1,
1,
1 ,0
1,0
1, Port
Port
Port
>= 10,000
2,000
8
88
>= 5,000
48
1,000
,0444
1,04
1,048
1,04
1,04
1,04
1,048
1,04
1,048
,0
,0
1,0
11
1
>= 1,000
500
88
8
< 1,000
500
99955577

88885511
11
551111
888855
Figure 3.3.12 Current Traffic Volume by Railway
Damie
Damietta
Damietta
tta
0
0
0
00
Alexandria
Ale
Alexandria
xandria Said
91 Port
Port
Port Said
0
0
0
91
0
0
91
91 0
91
0
0
0
91 9
0 0
1
91
0 0 0
91
0
0
91
0
0
91
0
91
0
0
0
0
91
91
0
0 0
0
91
91
58
Suez
Sue
Suezz
58
LEGEND
58 58
58
Sokhna
Sok
Sokhna
hna
58
>= 10,000
75 Port
Port
Port
58
>= 5,000
50
58
58 58
>= 25
1,000
< 1,000
25
58
Unit: 1,000 ton/year 58

58
58

Figure 3.3.13 Current Traffic Volume by Inland Waterway
3-34
FINAL REPORT
3.3.3 Future Freight Flows and Volumes for Export and Import in Egypt
(1) Export and Import Volumes in 2022 by Commodity Type
The ratios of export and import volumes in 2022 to that of 2005 were estimated using
CAPMAS database. Generally, the increase in export and import volumes is proportional to
the increase in GDP and population. Therefore, growth ratios of major export and import
commodities were projected based on the analysis of the export and import data with GDP and
population. The CAPMAS database was used for the data over the past 10 years. The
future (2022) export and import volumes were calculated by multiplying the current (2005)
export and import volumes by the projected growth ratios. Table 3.3.11 shows the result of
the projection. The details of the projection are described in Appendix-3.
Table 3.3.11 Export and Import Volumes(*) in 2022 by Commodity Type
Growth Rate
Rank Export Commodity 2005 2022
(2022/2005)
1 Cement 8,234 2.12 17,456
2 3,340 2.71 9,052
Compressed
3 Phosphates, Crude, Natural 1,794 2.12 3,803
4 Gasoline 1,357 2.40 3,256
5 Salt, Crude or Refined 1,238 2.12 2,625
6 Rice 1,071 2.96 3,170
7 Sand for Industrial Use 973 2.12 2,062
Building and Monumental Stone,
8 925 2.12 1,961
Unworked
9 Semi-finished Rolled Steel Products 560 4.89 2,737
10 Others 12,135 2.86 34,705
Total 31,627 2.56 80,829

Growth Rate
Rank Import Commodity 2005 2022
(2022/2005)
1 Wheat 6,266 1.38 8,647
2 Maize 5,282 1.38 7,289
3 Other Basic Chemicals 4,680 3.38 15,818
Railway or Tramway Sleepers of
4 Woods and Other Wood Roughly 2,048 2.97 6,083
Squared, Half Squ
5 Iron ore and Concentrates 2,028 3.11 6,307
Oil-seed Fats, Oil Nuts and Oil
6 1,722 2.47 4,253
Kernels
7 1,644 2.54 4,176
Compressed
Pig Iron, Spiegeleisen and Carburized
8 1,486 3.11 4,621
Ferro-manganese
Animal and Vegetable Fats and Oils,
9 1,314 3.05 4,008
and Products Derived Therefrom
10 Others 18,218 3.53 64,310
Total 44,688 2.81 125,573
Source: Calculated by JICA Study Team based on the data from EMDB and CAPMAS data.
3-35
FINAL REPORT
(2) Cargo Volume at Major Ports

Table 3.3.12 shows the shares in cargo volume handled at the major ports in Egypt.
Although the share of the volume handled in Alexandria Port accounted for over 50%
until 2005, it fell to 40% in 2006. Meanwhile, the share handled in Damietta Port rose to
25%, and the share in Port Said Port and Sokhna Port also rose in 2006. It was assumed
that the port shares would be the same in 2022 for the forecast of export and import
volume at the major ports.
The cargo volumes at ports (2022) were estimated by multiplying the current volumes of
each commodity at each port (Table 3.3.9) by the growth rate of each commodity, taking
the ratios of export and import volume in 2022 to that of 2005 (Table 3.3.11) into
consideration. Since there is an apparent fluctuation of handling volume at each port
between 2005 and 2006, preliminary estimation of total cargo volume of each port in 2022
was adjusted by the port share in 2006, which is judged to be the most probable share in
2022 with due consideration of i) fluctuation of cargo volume in 2005-2006 and ii)
various port development plans up to 2022. Table 3.3.13 shows the result for the four
major ports. It was estimated that 83 million tons would be handled in Alexandria Port,
which would have a share of 40%, followed by Damietta Port, which would handle 50
million tons and have a share of 25%.
The volume of cargo handled at major ports in Egypt in 2022 will reach 206 million tons,
and the growth ratio of handling volume in 2022 to 2005 will be 2.7 times. Among the
four major ports, Port Said Port will have the highest growth ratio (4.8 times), followed by
Sokhna Port which will have a growth rate of 3.3 times. The growth ratio in Alexandria
Port will be 2.1 times which is the lowest among the four major ports.
Table 3.3.12 Growth Trend of the Cargo Volume in 4 Major Ports: 2004 - 2006
2004 2005 2006
Major Ports
Volume Share Volume Share Volume Share
Alexandria & El-Dekheila Ports 34,902 52% 40,344 53% 23,314 40%
Damietta Port 14,396 21% 17,411 23% 14,473 25%
Port Said Port & East Port Said 3,905 6% 3,154 4% 4,433 7%
Sokhna Port 3,261 5% 3,440 4% 3,327 6%
Others 11,080 16% 11,966 16% 13,303 22%
Total 67,544 100% 76,315 100% 58,850 100%
Note: Transhipment is not included.
Source: Website of Maritime Transport Sector (www.mts.gov.eg)
Table 3.3.13 Future Growth of Local Cargo Volume by 4 Major Ports
2005 2022 Growth Rate
Major Ports
Volume Share Volume Share (2022/2005)
Alexandria & El-Dekheila Ports 40,344 53% 82,920 40% 2.1
Damietta Port 17,411 23% 50,059 25% 2.9
Port Said Port & East Port Said 3,154 4% 15,084 7% 4.8
Sokhna Port 3,440 4% 11,483 6% 3.3
Others 11,966 16% 46,856 22% 3.9
Total 76,315 100% 206,402 100% 2.7
Note: Transhipment is not included.
3-36
FINAL REPORT
(3) Demand from the New Industrial Zones

The development of the new industrial zones is scheduled at various locations in Egypt.
Some of them, especially the two industrial zones (6th of October and 10th of Ramadan)
are so large that it is desirable to estimate the demand separately and add to the forecast.
For this, the expansion rates were defined to incorporate the additional demand from the
industrial zones and were calculated for the two main industrial zones. The expansion
rate and the basis of the calculation are described in Appendix 3.
(4) Cargo Handling Volume by Transport Mode

The Damietta branch is scheduled to be opened in the near future, and it is expected that a
part of the traffic between Damietta Port and each zone transported by truck will shift to
the inland waterway.
The export and import freight between the Alexandria Port and Upper Egypt including
Greater Cairo and 6th of October zones transported by the inland waterway, at present,
comprises “Semi-finished rolled steel product”, “Other Basic Chemicals” and “Others”.
The modal shares of inland waterway for these commodities are 97%, 4% and 1%
respectively (Table 3.3.14). The modal shares along the Damietta Branch were assumed
to be the same as those of the inland waterway between Alexandria Port and Upper Egypt.
Table 3.3.15 shows the projection of traffic for export and import by inland waterway
along Damietta Branch.
Table 3.3.14 Modal Share along Alexandria Port and Upper Egypt in 2005
Commodity Type Inland Waterway Truck Modal Share
Semi-finished Rolled Steel
6.9 0.2 97.2%
Product
Other Basic Chemicals 5.1 135.8 3.6%
Others(*) 78.6 7,352.4 1.1%
(*) Others include raw aluminium, molasses and other materials.
Source: Calculated by JICA Study Team
Table 3.3.15 Adjustment of Modal Share along the Damietta Branch in 2022
Projection of Modal Share of Shifted Volume to
Commodity Type
Traffic by Truck Inland Waterway Inland Waterway
Semi-finished Rolled Steel
5.0 97.2% 4.9
Product
Other Basic Chemicals 853.9 3.6% 30.7
Others 16,143.8 1.1% 177.6
Source: Calculated by JICA Study Team
Table 3.3.16 shows the estimated cargo handling volumes by transport mode. After the
Damietta Branch opens, some cargo transported by inland waterway will be handled in
Damietta Port, but the volume will not be large, The modal share in 2022 will be as
almost the same as in 2005.
3-37
FINAL REPORT
Table 3.3.16 Local Cargo Handling Volume(*) by Transport Mode in 2022

and the Modal Share
Inland
Major Ports Truck Railway Total
Waterway
Alexandria & El-Dekheila Ports 75,190 6,940 790 82,920
Damietta Port 47,221 2,682 156 50,059
Port Said Port & East Port Said 14,167 917 0 15,084
Sokhna Port 10,701 782 0 11,483
Others 42,300 4,556 0 46,856
Total 189,579 15,877 946 206,402
Modal Share (%) in 2022 91.8% 7.7% 0.5% 100.0%
Modal Share (%) in 2005 90.7% 9.0% 0.3% 100.0%
(5) Future Freight Movement of Export and Import in Egypt (2022)

Cargo volumes at ports in 2022 were estimated as described above. The transport
volumes from origins for export and those to destination for import were estimated from
the current volumes and the growth ratios of commodities. The OD matrices in 2022
were estimated from the future volumes and current OD matrices applying the Fratar
Method. Refer to Appendix-3 for the detail process of the estimation
Figure 3.3.14 shows the transport volume flow by all modes on the spider network4 in
2022. This figure shows the section with the highest transport volume, i.e. the section
that will be the most important. The largest volume will be transported between
Alexandria Port and Cairo, the second largest will be between Damietta Port and Cairo,
and the third will be between Cairo and Upper Egypt. Therefore, Upper Egypt – Cairo –
Alexandra Port / Damietta Port will be the most important export/import corridors.
4
A spider network is a virtual network that connects the center of each zone by a straight line.
3-38
FINAL REPORT
Dam
Damietta
ietta
ietta
Alexandria
Alexandria
Ale xandria
31,498
31,498
31,498
31,498
31,498
31,498 Port Said
Said
Port Said
18,197
18,197
18,197
18,197
5,926
5,926
5,926
5,926
5,926
5,926
17,207
17,207
17,207
17,207
17,207
17,207
43,111
43,111
43,111
43,111
43,111
43,111 6,664
6,664
22,655
22,655
22,655
22,655
16,219
16,219
16,219
16,219
13,774
13,774
13,774
13,774
13,774
13,774
8,481
8,481
8,481
8,481
8,481
8,481
41,589
41,589
41,589 22,444
22,444
22,444
22,444
22,444
22,444
41,589
41,589
41,589
13,227
13,227
7,093
7,093
7,093
7,093
7,093
7,093
22,527
22,527
22,527
22,527
22,527
22,527 Suez
Suez
Suez
9,563
9,563
9,563
9,563
9,563
9,563 16,156
16,156
16,156
16,156
16,156
16,156
24,376
24,376 Sokhna
Sokhna
Sok hna
24,376
24,376
Port
Port
8,556
8,556
8,556
8,556
23,574
23,574
23,574
23,574
13,716
13,716
13,716
13,716
13,716
13,716
20,074
20,074
20,074
20,074
12,268
12,268
Safaga
Safaga
9,778
9,778
9,778
9,778
9,778
9,778
9,011
9,011
9,011
9,011

Figure 3.3.14 Future Volume Flow on the Spider Network
(6) Future Traffic Volume by Transport Mode

Figures 3.3.15 through 3.3.17 show the future traffic volume of export/import freight on
the major networks by each mode in 2022. They were estimated by assigning the future
freight OD matrices to the present networks.
a) Truck
Figure 3.3.15 illustrates the forecast results of the truck traffic in 2022. It is
forecasted that the section with the heaviest traffic volume of export/import freight
will be the road linking Alexandria Port and the Alexandria Agricultural Road, and
has a traffic volume of 51 million tons per year. The total traffic volume on Desert
road and Agricultural Road between Cairo and Alexandria will amount to 55 million
tons, while that on the road between Damanhur and Alexandria will amount to 32
million tons. For the corridor of Cairo - Damietta, 29 million tons will be
transported on the road between Mansura and Damietta. The section between Cairo
and Upper Egypt, 30 million tons will be transported in 2022.
b) Railway
The results of the railway traffic projection are illustrated in Figure 3.3.16. On the
rail section between the center of Cairo and the branch point in the north of Cairo, the
largest export/import freight traffic volume of 11 million tons will be transported.
3-39
FINAL REPORT
The second largest volume i.e. 7 million tons will be transported between Cairo and
Alexandria, while 6 million tons will be transported between the rural area of Giza
and Cairo. The traffic volume of other lines will be also increased, and 5 million
tons will be transported between Zagazig and Ismailia.
c) Inland Waterway
The volume transported by inland waterway between Alexandria Port and Cairo will
be 0.3 million tons and the volume between Damietta and Cairo will be 0.2 million
tons. Inland waterway services between Damietta and Cairo, it is assumed, will be
commenced in 2008 or after 2008 and will a part of major freight networks, with a
transport volume of 0.16 million ton per year in 2022. The result of the inland
waterway traffic projection is illustrated in Figure 3.3.17.
66,1
,,,1
,,1
11
15
55
57
77
6666,,,,11 Dam
Damie
Dam ietta
ietta
tta
66,,1
66 ,1
,1
,1 577
,1155 7 11555577
77 335
7777 3 55,,1,1
,,,116
11
1155 666
66
66,, 111111,,
77 66777
99
557 22 Port
Port Said
Port Said
00009
Ale xandria ,,11112233
Alexandria
Alexandria 66,,11
9,,,00
3
33
222299
1111,,
663
555
,86
3,3
,,3 599
,3355 9
44,8
0000 3
33,3
,3
3333,,,,33
332
22,,,,00
14
9
3 5599
14,863
14,863
3555
11
14,863
14,863
63
66
14,863
14,863 14,863
006
1
3
33
33,,,33
00
9999
77558
55 8
88 33,2
33
3,,2
,2
22
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3,,2
2
22
25
3333,,,,55
1,,,,77
55
1
11
5,,,,3
5666
2
22
23
3,257
3,257
3,257
3,257
33
33
35
222
3,,,,3
55
775588
52
33
38
22
,,7
,7
2
,,7
14,863
8 11,7
88
14,863
14,863
81
88
77
11
75
75
75
58
58
58
8
1
1,75
1,
1,
66
007
1,7
1,7
1,775
75 556633
0044446
1,
1,
1,
770
833
,183
83
11,,,,00
8,,,,77
16,1
16
16
16
16
16 ,1
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83
83
22777
88
18
7777444477
,,99922
11
1
55666633
7 11116666 70055
00
15
15
77
15
15
,,,,000033
546
15
15,9
111555,
546
546
5
554
332222
44
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22333
46
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66
6
27
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27
27 11 9,2
1
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11666
747
747
88111
13
1
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33
74
74
7477 77
73 1,
1,,4
1,
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3,4
74 7 33
388 ,448
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86
48
48
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66
86
86
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443
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32222
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33
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66 30
118888
,,111122
9,
9,
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9,2
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228888
30
30
30
30,61
0
00 23
23
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23
23
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1 0 23
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771
36
66,,,,0077
36
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36
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9
99
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99990000
89
6
66
1 66
6
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88
9
99
118
,619
19
0 7711
19
,,,,888833 1111,,
9
99
30,61
66,,,00
9
333333
111199
9
99
99,,2
,,,2
,2
22
23 ,5511
22223333 336
66 18888
30
30
30
,,,,8833
3333 5,6
5,6
5,6
5,
5, 61
61
61
66
66
6611
61
61
61 9,
9,
9,23
9,2
9,223
23
23
5,6
5,6
5,6 9,
9,
9, 66
36
366
4444,,,222288
11,6
11
11
11
11 ,678
,6
,6
,67
,67
,6
,6 78
78 23
23 6
88 22
78 22
22,0
22 ,0
,0
,056
56
56 22
22
,0
,056
56
56 556
66
6 2 22
2,,,,00 444,,,,55
44
34
,0
,055
9,
9,
33
22,0
,0 0 5222288
9,
5555
9,
9,23
22 556 4
44
03
2222 66 4,,,,5
55
00
,,,0
00
20
5228 88
1144,,,0 0
23
88
23
236
22
11112222 8
12
00 ,,,,111144 4
4
,,111
0
4,,1
,,1
66
22
2
6
002 442222
44
000
4
3,,,0
333
33 Suez
Suez
7
77
93
3 Sue z
07
99
14,1
14,1
14,
9
14,1
14,1
00
14,1
14,1
14,104
60
6,,,,333
,,,6
66
11114444,
99,,6,6
66
1116
,,55599
104
104
9
4
44
1
04
04
04
04
004
1
11
04
04
9888
14
44
7
77
LEGEND 4,,,,5
70
10
55
00
59
99
0
,,1
4,,1 11
,,1
98
88
8
11
1 44
14
3
33
33
70
70
33
Sokhna
Sokhna
70
70
70
70
Sok hna
23
09
09
09
09
99
,,,2
22
09
09
3,,2,2
80
14,104
14,104
14,104
14,104
80
,8
,8
33
>= 20,000
10,000
,8
,8
3
,8
0,,8
Port
Port
Port
0,
777700
10
10
4444
10
10
10
10
1
,,11110000
3,
3,
3,
3,
1
3,
3,23
>= 10,000
5,000
11114444,,
23
23
233
3
33
33
33
33
23
>= 2,500
1,000
77770000
,,,2
22
00
3,,2,2
14,104
14,104
33
14,104
14,104
14,104
14,104
3
1
11
15
< 2,500
1,000
55
5,8
0
00
,8
0
,8
,88
3366
77770000
88
855

70
7
770
7
70
00
0
22111122
22
15,885
15,885
15,885
15,885
15,885
15,885
11119999,,22
66
3366
70
70
70
0

Figure 3.3.15 Future Traffic Volume by Truck in 2022
3-40
FINAL REPORT
Dam
Damietta
ie tta
Damietta
3,
3,45
3,
3,
3, 458
88
00
000 00
00 0 00
00
00 00
0
0
8888
77
7,,,88 11,,,333
,,445555
7 6661111 Said
Port Said
Port
Port
3333,,44
559
0
00
0000
Alexandria
Ale
Alexandria
xandria 99
9
113333
11
1 00
00 00
0 00 00
333311
0000
1,,3
,,,,3
33
,3
336 00
66
667777
11
61 11 2229911 0
55557777
6,
6,
6, 1 2222999911 11 0
00
7777,,,,1111
6,
6, 85
6,85
859
8 0
33,,,,7777
85
85 99
9
599 229999
1,281
1,281
1,34
1,348
1,34
1,281
1,281
1,34
1,34
1,348
1111
1,348
88 11 11
1
3300088 2,443
2,443
2,443 1 1
111,,
88
8
88
,,11111
00
08
66,,,,88
8
330
0
00
30088
33 3
660
1777
3 308
88
308
308
85599
30
30
30
308
308
308 1111,,,,33333
335555
66,,88 1111
,,000033
332222
9
885599
2222,,
9
11
11
1,,33
11
1
1111,,22
337
772 33
,,228888
22 33444433
6666,,,,88
1
11
2222
1,8
,,8
1111,,3,,3
85559
,,8
,8
883
1111
99
33
22
39
6666
99
33
1
11
99 33
333
1
22
22 3333,,,,2222
99 33333333 4,
4,
4,
4,
4, 633
4,63
63
63 33
3 4
44 663
,,6
,6
,6
,,6
4,6
,6
4444,,,,6666
4444,,,,22
00
00
22333377
0
1,835
1,835
1,835
1,835
77
6,859
6,859
44
6,859
6,859
9922244
0
00
1111,,9
4,237
4,237
6666,,,,88
4,237
4,237
00
88559 44,,2
44 ,2
,,,223
22
99 377
33
00
0
00
3,7
3,75
3,75
3,75
3,75
00
44,,,22
3,75
3,7
3,75
00 00
00 00 0
00
00 0
223377
0000
59
59
3,759
3,759
3,759
7
9
99
9 0
0000
10,617
10,617
10,617
10,617
10,617
10,617
00
000
0
33443
4433
3 Suez
Sue
Suezz
6,,,,33
2
22
6
66
62
8,71
8,7
8,71
8,71
8,71
8,71
8,7
8,71
,,0
1,0 66
,006
13
13
13
11
666
66
1
66
6
3
33
3 ,3
LEGEND
2,
2,
2, 36
36
36
36
,3
2,,3
2
22
2,
666 2,
2
2,,3
2
006622
22
,3
,,3
33666
11,,,00
66
Sok
Sokhna
Sokhna
hna
>= 10,000
2,000 2,
2,
2
2
2 ,3 36
,3
,3
22,,3 66
36
366 Port
Port
Port
>= 5,000
1,000
666
,366 6
2,366
2,36
2,366
2,366
2,366
2,366
2,36
2,366
2,3
>= 1,000
250
22
2
66
< 1,000
250
661111
222,,,111166

2
9911122
1111,,,, 9

Figure 3.3.16 Future Traffic Volume by Railway in 2022
Dam
Damietta
ie tta
Damietta
6666
11115555
15
15
15
15
15
156
1
115566
6
66
6
Alexandria
Ale
Alexandria
xandria Port
Port
Port Said
Said
226666
115566
555522 1
11
15
55
56
66
6
156
156
156
2264
2 64
64
6
644
64 115
11 56
55 6
66
2
22
26
66
64
44
4 2
226
156
156
156
15
15
156
156
15666
66
644 22
44 22666644
44
56
56
66
264
264
56
156
264
264
15
115
15
1
111155566
1
226
66
66
556
64
115
44 2
1
1
11
15
66
55
4
44
56
64
11115555
66
66
226
6
226
664
44
5 6666
111551111
555666
4
44
22226666
64
66
26
44
22
2
566
55
1
11
15
156
11
5
56
1
42
44
4 56
5
56
0
00
20
22 66
222266
661111 26
Suez
Sue
Suezz
26
26
26
26
26111
LEGEND
22226666111
2
22
26
66
61
11
1
Sokhna
Sok
Sokhna
hna
11
661
226
>= 10,000
2
22
300
26611
2
Port
Port
Port
11
>= 5,000
200
222266
6111
>= 1,000
100
261
261
261
< 1,000
100
Unit: 1,000 ton/year 44
222244444
444
22224444

Figure 3.3.17 Future Traffic Volume by Inland Waterway in 2022
3-41
FINAL REPORT
(7) Export and Import Container Volumes in 2022

The export and import volumes in 2022 were estimated at 206 million tons including dry
bulk, liquid bulk and conventional cargo. The conventional cargo can handle as
container cargo. The export and import container volumes were estimated with the
following steps:
i) In accordance with the relation between handling type and commodity type shown
in Table 3.3.8, the commodities in Table 3.3.17 were selected.
ii) The export and import conventional cargo volumes in 2022 were estimated by
applying the present shares of the conventional cargo.
iii) Assuming that the containerization ratio is 60% except for “gasoline” and “railway
or tramway sleepers of woods and other woods roughly squared, half squ”, the
export and import container volumes were estimated.
As a result, the export and import container volumes were estimated at 66 million tons.
Assuming that the weight of 1 TEU is equal to 10 tons, 6.6 million TEU of containers for
export and import will be handled in Egypt.
Table 3.3.17 Estimation of Export and Import Container Volumes in 2022

(3)
(1) (2) (5)
Volume of (4)
Volume Share of Container
Commodity Conventional Containerizati
(1000 Conventional Volume
Cargo on Ratio
ton/year) Cargo (%) (3) x (4)
(1) x (2)
Export
Cement 17,456 3% 524 60% 314
Gasoline 3,256 24% 781 0% 0
Rice 3,170 3% 95 60% 57
Semi-finished Rolled
2,737 100% 2,737 60% 1,642
Steel Products
Others 34,705 100% 34,705 60% 20,823
Sub-Total 61,324 - 38,842 - 22,836
Import
Other Basic Chemicals 15,818 14% 2,215 0 1,329
Railway or Tramway
Sleepers of Woods and
6,083 100% 6,083 0% 0
Other Woods Roughly
Squared, Half Squ
Oil-seed Fats, Oil Nuts
4,253 47% 1,999 60% 1,199
and Oil Kernels
Animal and Vegetable
Fats and Oils, and
4,008 100% 4,008 60% 2,405
Products Derived
There from
Others 64,310 100% 64,310 60% 38,586
Sub-Total 94,472 - 78,614 - 43,519
Total (Export + Import) 66,355
Note : The shares of conventional cargo are same as Table 3.3.8.
3-42
FINAL REPORT
3.3.4 Road Capacity and Transport Demand of Major Roads in 2022

The future traffic flow was assessed in terms of road congestion on the major roads which
were expected to be the important logistics corridors for export and import. For this
assessment, the following roads were selected as the major components of the freight transport
networks:
- Cairo - Alexandria Desert Road
- Cairo - Alexandria Agriculture Road (Damanhur - Alexandria)
- Cairo - Damietta Agriculture Road (Mansura - Damietta)
- Port Said Road (Ismailia - Port Said)
- Cairo - Suez Desert Road
- Cario - Sokhna Road
The present traffic volumes are shown in the figure below.
18,450
18,450
18,450
18,450
18,450
18,450
8,907
8,907
8,907
8,907
39,182
39,182
20,854
20,854
20,854 23,247
23,247
10,952
10,952
10,952
10,952
10,952
10,952
4,413
4,413
4,413
4,413 25,908
25,908
25,908
25,908 15,189
15,189
15,189
15,189
15,189
15,189
16,534
16,534
16,534
16,534
16,534
16,534
28,973
28,973
28,973
28,973
28,973
28,973
34,319
34,319
34,319
34,319 5,067
5,067
5,067
5,067
27,849
27,849
27,849 7,784
7,784
7,784
7,784
25,504
25,504
25,504
25,504
25,504
25,504 11,372
11,372
11,372
11,372
11,372
11,372 10,692
10,692
10,692
10,692
10,692
46,506
46,506 9,523
9,523
9,523
9,523
9,523
46,506
46,506
26,254
26,254 16,124
16,124
17,960
17,960 11,376
11,376
11,376
11,376
17,960
17,960 51,438
51,438
51,438
51,438
51,438 25,431
25,431
25,431
25,431
27,551
27,551
27,551
27,551
12,792
12,792
12,792
12,792 8,001
8,001
8,001
8,001
980
980
980
980
14,291
14,291
14,291
17,699
17,699 12,300
12,300
12,300
12,300
104,834
104,834
104,834
104,834
104,834
49,236
49,236
28,809
28,809
28,809
28,809
15,941
15,941
15,941 1,790
1,790
1,790
1,790
19,576
19,576
19,576
19,576
19,576
19,576
12,899
12,899
12,899
12,899
12,899
12,899
5,578
5,578
5,578
5,578
3,955
3,955
13,831
13,831
12,312
12,312
12,312
5,170
5,170
Unit: vehicle/day
Source: GARBLT
Figure 3.3.18 Annual Average Daily Traffic in 2006
The future traffic volumes on these roads were estimated from the present traffic volumes and
an assumed growth rate. The annual growth rate of GDP is assumed to be 6.9% in this study.
Assuming the GDP elasticity of traffic volume is 0.8, the annual growth rate of traffic volume
is calculated to be 5.5% (6.9 x 0.8). Using this rate, the traffic volume in 2022 was
calculated to be 2.5 times that of 2005. For the evaluation of the congestion, V/C ratios
(daily traffic volume/ daily road capacity) were calculated.
3-43
FINAL REPORT
The following formula was applied to the calculation of the daily capacity
Qc = Qs x N/2 x 100/K x 100/D x fn x fs

Where, Qc: Traffic capacity (pcu/day)
Qs: Basic traffic capacity (= 2,000 pcu/hour)
N: Number of Lanes (both directions)
K: K-factor (=8% :Percent of the peak time traffic to the daily
traffic)
D: D-factor (= 60 % for radial road, 55% for other road)
fn: Area type factor (= 0.6 for downtown, 0.75 for urban area, 0.9 for other
area)
fs: Service level factor (= 0.8 for Expressway and trunk road, 0.9 for sub-trunk
road, 1.0 for minor road )
From this formula, the capacity of the selected major roads was calculated as follows:
The values in Table 3.3.18 were applied to the variables in the formula above.
Table 3.3.18 Variables and Their Estimated Values

Section Qs N K D fn fs Qc
Cairo - Alexandria Desert Road 2,000 6 8 60 0.9 0.8 90,000
Cairo - Alexandria Agriculture
2,000 6 8 60 0.75 0.8 75,000
Road (Damanhur ・Alexandria)
Cairo - Damietta Agricultural
2,000 4 8 60 0.9 0.8 60,000
Road (Mansura ・Damietta)
Port Said Road (Ismailia ・Port
2,000 4 8 60 0.9 0.8 60,000
Said)
Cairo - Suez Desert Road 2,000 4 8 60 0.9 0.8 60,000
The result of the calculation was summarized in Table 3.3.19.
Table 3.3.19 Capacity Analysis of the Major Road

Traffic volume of
Section Capacity Daily Traffic volume Volume/ Export/import
1)
2006 2) 2022 Capacity Equivalent
(pcu/day) (veh/day) (Upper:veh/day) (V/C) (million traffic volume
(Lower:pcu/day 3)) ton/ year) in pcu.day 4)
Cairo - Alexandria 72,000
90,000 28,809 1.2 24 20,500
Desert Road 108,000
Cairo - Alexandria 98,000
75,000 39,182 2.0 32 27,400
Agriculture Road 147,000
Cairo - Damietta 58,100
60,000 23,257 1.5 29 24,800
Agricultural Road 87,200
38,000
Port Said Road 60,000 15,189 1.0 16 13,700
57,000
Cairo – Suez 39,900
60,000 15,941 1.0 22 18,800
Desert Road 59,900
Cairo – Sokhna 13,900
60,000 5,578 0.4 15 12,800
Road 20,900
1) Refer to “Capacity Calculation” described below
2) Source of traffic volume in 2006 :GARBLT, refer to Figure 3.3.18.
3) It was assumed that 50% of vehicles are large vehicle (pcu = 2.0).
4) Top: Yearly transport volume in ton
Middle: Equivalent traffic volume in pcu
Bottom: % of the equivalent traffic volume to the road capacity
The equivalent traffic volume in pcu/day was calculated as:
Export/import volume (ton/year) / 312 (operating days/year) / 15 (ton/veh) x 2.0 (pcu/veh)
Where, operating days = 6 days/week x 52 weeks/year = 312 days/year
3-44
FINAL REPORT
The assessment of traffic congestion of the major roads in 2022 was summarized as follows:
Cairo – Alexandria Desert Road

The V/C (volume/capacity) ratio of this road will be 1.2 when all kinds of vehicles are taken
into consideration, which indicates the possibility that congestion will occur around the
morning and evening peak times in 2022.
In addition, both ends of this road are connected with the access roads to Alexandria and Cairo.
These access roads are designed with less velocity and the number of lanes are less so that
there will be congestion at both ends.
Cairo – Alexandria Agriculture Road (Damanhur – Alexandria)

On this road, traffic of export/import freight will amount 39% of the road capacity in 2022.
The V/C ratio based on all kinds of vehicles will be 2.0, which means that congestion will
probably happen all through the day in 2022.
Cairo – Damietta Agriculture Road (Mansura – Damietta)

On this road, traffic of export/import freight will amount to 41% of the road capacity in 2022.
The V/C ratio will be 1.5. This V/C ratio means that congestion will probably happen all
through the day in 2022.
Port Said Road (Ismailia – Port Said)

The V/C ratio based on all kinds of vehicles will be 1.0, which means that congestion will not
be observed on this road in 2022.
Cairo – Suez Desert Road
The V/C ratio based on all kinds of vehicles will be 1.0, which means that congestion will not
be observed on this road in 2022.
Cairo – Sokhna Road
The V/C ratio based on all kinds of vehicles will be 0.4, which indicates that the road has
enough capacity in 2022.
3-45
FINAL REPORT
3.3.5 Line Capacity and Transport Demand of Major Railway Lines in 2022
Table 3.3.20 lists up railway lines of the major railway freight corridors, and presents a line
capacity and a freight transport demand section in 2022. Line capacity in Table 3.3.20 was
assessed in the report entitled “The Master Plan Study for Egyptian National Railways” (JICA,
1996). The line capacity is dependent on many factors such as the number of locomotives
and their performance, number of station and a distance between the stations, number of
passenger trains required, track condition, and line facilities, so that the line capacity in Table
3.3.20 could have been improved by the railway modernization projects after 1996; however
figures in the table are still useful to check new necessity of railway improvement works.
In estimating the necessary number of freight trains in 2022, the following assumptions are
adopted:
Tv = Nw x Tw
= 50 wagons x 20 tons/wagon = 1,000 tons/freight train
Where: Tv: Transport volume of one freight train (ton/freight train)

Nw: Number of wagons per freight train
Tw: Average weight of freight wagon (loaded) (ton/wagon)
Table 3.3.20 confirms that almost all the railway sections have enough line capacity to cope
with the freight transport demand even in 2022 since V/C ratios (= volume/capacity) keep less
than 1.0, and suggest that there is no need to conduct any big railway projects except new
access line construction projects. However, three sections have to cope with excessive
transport demand: first, El Maraziq – KM 48 section, secondly, Damietta Port - Kafr Bateikh
section, and lastly Suez – Al Robeki section.
The transport demand of these railway sections are induced by the expected economic growth.
An excessive demand on these railway sections can be coped with a simple and easy measure
i.e. an installation of new stations and/or new signaling stations, resulting in a shorter distance
of the block section and a higher line capacity.
As for the El Maraziq – KM 48 section, new access line between Manashy – KM 48 will
greatly contribute to ease the capacity constrain and will realize more smooth and easier
access to the industrial zones to/from the export/import gates and the remote markets. Newly
suggested access lines are listed in Table 3.3.20, and are explained in detail in Chapter 4.
Necessity of these suggested lines is set to seek for the more efficient freight flows, rather than
to solve the capacity constrains.
3-46
Table 3.3.20 Line Capacity and Transport Demand of Railway by Section
Transport Volume
1) Equivalent Number
Line Capacity of Export/Import 7)
Passenger of Freight Train Volume/ Capacity
(trains/day) Freight
Route Section Track and/or (train/day)
(1,000 tons/year)
1)
Freight
Pass. Freight
2006 2022 2006 2022 2006 2022
Train Train
Table 3.3.20 Line Capacity and Transport Demand of Railway by Section

Port Dekheila - Qabbary Single F - 24 2) 2,746 7,167 8 20 - 0.8
Qabbary - El Ithad Single F - 24 2,644 6,859 7 19 - 0.8
th El Ithad - Manashy - Imbaba Single P&F 37 38 2,644 6,859 7 19 0.2 0.5
Alexandria - Cairo/ 6 of
Imbaba - El Giza - El Maraziq Double P&F 182 68 10,617 0 29 0.0 0.4
October Industrial Zone
(near) El Maraziq - (near) KM 48 Single P&F 2 8 2,040 6,343 6 17 0.7 2.2
(near) Manashy - (near) KM 48 3)
Single F - 24 - 6,470 - 18 - 0.7
(newly suggested access line)
Damietta Port - Kafr Bateikh Single F - 8 766 3,458 2 9 - 1.2
th Kafr Bateikh - Mansoura Single P&F 35 9 873 1,332 2 4 0.3 0.4
Damietta - Cairo/ 10 of Mansoura - Zagazig Single P&F 34 12 155 1,343 0 4 0.0 0.3
Ramadan Industrial Zone th
Zagazig - 10 of Ramadan - Robiki 4)
Single P&F 34 12 - 3,991 - 11 - 0.9
Port Said (West) - El Ismailia Single P&F 20 9 681 1,281 2 4 0.2 0.4

Port Said Port (West) - El Ismailia - Zagazig Double P&F 67 32 1,593 4,633 4 13 0.1 0.4
th th
3-47
Cairo/10 of Ramadan Zagazig - 10 of Ramadan - Robiki 4)

Single P&F 34 12 - 3,991 - 11 - 0.9

5)
Port Said Port (East) - El Ismailia Single P&F 5 2 - n.a. - - - -
Port Said Port (East) - Cairo/ Ismailia - Zagazig Double P&F 67 32 1,593 4,633 4 13 0.1 0.4
th th
10 of Ramadan Zagazig - 10 of Ramadan - Robiki 4)
Single P&F 34 12 - 3,991 - 11 - 0.9
6)
Sokhna Port - Suez Sinlge F - 17 477 1,062 1 3 - 0.2
Suez - Nefisha Double P&F 18 16 1,203 4,237 3 12 0.2 0.7
th
Sokhna Port - Cairo/ 10 of Nefisha - Zagazig Double P &F 67 32 1,593 4,633 4 13 0.1 0.4
th
Ramadan/ 6 of October Suez - Robiki Double P 22 2 - 3,896 - 11 - 5.3
th
Zagazig - 10 of Ramadan - Robiki 4)
Single P&F 34 12 - 3,991 - 11 - 0.9
Upper Egypt - Red Sea Qena - Safaga Single P&F 2 10 - - - - - -
Upper Egypt - Cairo El Sad El Ali - Cairo Double P&F 182 68 851 1,912 2 5 0.0 0.1
Note: 1) P stands for Passenger, and F stands for Freight.
2) Port Dekheila - Qabbary: its line capacity is preliminary set as same as that of Qabbary - El Ithad section.
3) (near) Manashy - KM 175 : its line capacity is preliminary set as same as that of Qabbary - El Ithad section.
FINAL REPORT
4) Zagazig - 10th of Ramadan - Robiki: its line capacity is preliminary set as same as that of Mansoura - Zagazig.
5) Port Said Port (East) - El Ismailia: its line capacity is preliminary set as a quarter (6 hours/24 hours) of that of Port Said (West) - El Ismailia since Ferdan Swing Bridge (for railway) can
be used for 6 hours in total per day.
6) Sokhna Port - Suez: its line capacity is preliminary set a half of line capacity of Suez - Nefisha ((18 + 16)/2 (double) = 17 (Single)).
7) It is assumed that one freight train is composed of 50 wagons (equivakent to 20 tons).
8) n.a. indicates not available.
Note: All the spellings of the ENR stations are shown as same as those in Figure 4.3.2.
Source: Master Plan Study for Egyptian National Railways (JICA, 1996), and up-date by JICA Study Team.
FINAL REPORT
Alexandria - Cairo/ 6th of October Industrial Zone

At present, actual freight transportation by railway is conducted between Alexandria and Cairo,
and freight transport services is not available as far as 6th of October industrial zone by railway.
This is assumed kept even in 2022. As shown in Table 3.3.20, the freight transport demand
will be increased up to 10.6 million tons/year on the section of Imbaba – El Giza – El Maraziq:
however the V/C ratio is only 0.4 and no problem is expected in line capacity. If new access
line to 6th of October industrial zone will be constructed, 6.4 million tons will be shifted from
the Imbaba – El Giza – El Maraziq section to the new access line because of more efficient
freight handling at a proposed logistics center there.
Damietta - Cairo/ 10th of Ramadan Industrial Zone

The V/C ratio of the Kafr Bateikh – Mansoura – Zagazig section of this export/import freight
corridor will be 0.4 and 0.3 in 2022. On the contrary, the Damietta Port – Kafr Bateikh
section will have an excessive demand (V/C ratio is 1.2), and this is attributable to a
connectivity with the major railway line (Damietta – stations beyond EI Mansoura) at Kafr
Bareikh station: however, that can be cope with easily. This single line is 15 km in length
with 2 stations, and can operate 8 freight trains per day by assuming 2 hours for
loading/unloading and 1 hours for a round trip. In 2022, this section requires another 2
freight trains (in total, 10 freight trains) to cope with the demand.
With new access line between Zagazig and 10th of Ramadan industrial zone (up to near Al
Robeki station of the Suez – Ein Shams line) induces freight transportation demand on this
line and the V/C ratio will be increased up to 0.9 in 2022.
Port Said Port (West) - Cairo/10th of Ramadan
The Port Said – El Ismailia section is a single line and have a line capacity of 29 trains per day
(20 for passenger trains and 9 for freight trains), and the V/C ratio in 2022 will rise from 0.2 in
2006 to 0.4, being still far below the line capacity. The El Ismailia – Zagazig section is a
double tracks and its V/C ratio in 2022 is expected only 0.4. Both sections do not have any
constrain of line capacity in 2022.
Port Said Port (East) - Cairo/10th of Ramadan
In 2007, the freight transport service between Port Said Port (East) and Cairo is not available
since there is no transport demand by railway. In case that this section will be used for
freight transport services in 2022, the line capacity will be limited by the Ferdan Swing Bridge.
However, its line capacity can be guaranteed to be 5 to 7 trains per day in total. No line
capacity is expected. Since the development plan of industrial zone behind Port Said Port
(East) is now underway, it is suggested that the freight transport demand of this railway line
might be reviewed as the development of industrial zone will progress.
Sokhna Port - Cairo/10th of Ramadan/6th of October

New access line between Zagazig and 10th of Ramadan industrial zone (up to near Al Robeki
station of the Suez – Ein Shams line) will bring a great shift of freight routes: from a route via
Ismailia to a route via Suez – Al Robeki – new access line (heading toward 10th of Ramadan
industrial zone). With this great shift of freight route, the line capacity of Suez – Al Robeki
section will be 5.3: however, a shift in the composition of passenger train/freight train
3-48
FINAL REPORT
(passenger = 12 trains, freight trains = 12 trains per day) can solve this capacity constrain for
freight transportation in 2022.
Upper Egypt - Red Sea
This section is used at present only for a transport of mining resources, and the line capacity is
12 trains in total. Potential transport of reefer containers for agro-products can be attached
with the present freight trains. No problem of line capacity can be expected even in 2022:
however, a progress of agricultural development of this region should be observed carefully to
adjust the freight transport demand on this line in the future.
Upper Egypt – Cairo
This section have a large line capacity i.e. 182 trains for passenger and 68 trains for freight
trains, and no line capacity is expected on this railway line even in 2022 (the V/C = 0.1).
In assessing the impact of railway infrastructure development projects, the demand forecast
sets five (5) cases of railway networks that are incorporated with new project suggested in
Chapter 4, and are compared with the case of “do noting”. In these cases, the infrastructures
of roads and inland waterways that are included in the present national development plan, are
set as pre-conditions. Cases are explained in Table 3.3.21, and Figure 3.3.18 show the
volume flow by railway in 2022 by alternative cases.
Table 3.3.21 Alternative Cases of Railway Network

Network Condition
Case Name
Road Railway Inland Waterway
Case-0 Same as Present Network
(Do Nothing Case)
Present Network
Case-R1 +[R9] 6th of October Direct Access
Line will open
Present Network Present Network
Case-R2 +Ring Road will be +[R12] 10th of Ramadan Direct Present Network
completely connected Access Line will open + Damietta
+Regional Ring Road Present Network Branch will open
Case-R3 will open +[SR1] New Freight Link (10th of
Ramadan - Helwan) will open
Present Network
Case-R4
+[R12] + [SR1] will open
Present Network
Case-R5
+ [R9] + [R12] + [SR1] will open
3-49
FINAL REPORT
(Unit: 1,000 ton/year)
3,458 3,607
00 0000 00 0000
0 0
07
58
1 1 4 08
1,44
3 ,6
1,36 1,28
0
1,3
3,4
0
0
0
1,4
1,3
3
3
7,290
7,167
0 0 00
31
0 0 00
44
0
31
1,4
61
1,3
07
44 29 0
57
61 29 0
6,98
6,85
1 0 1,2 1 0
3,9
1 ,1
3,7
29
1,308
29 308
1,281
00
1,421
308 17 0
1,348
3 1 3
1 3
308 52
3
308 44 1
9
6,
1 74
6,
74
2, 2,
98
85
8 8
60
1
2 60 60
9
1
6,859 1,4
3
1,3 1
5
1 6,9
11
6 ,8 04
03
59 1,117 32 83 1,200
2,
2,
2 60
1
1
6,8 59 6,983
1,372 1,454
1 ,3
5
1 ,2
3 41
1,91
1,83 34 1,
1,308
08
1,
1,281
81
2 2
2 2
7
5 84
96
9
3 7 84
, 2 33 4,633 4,63 0 3,4 4,884 4,8
03 4 ,6 4,8
4,
4,
00
0
00
4
0
23
1,912 1,912
90
1,835 1,835
0
7
6,982
0
6,859
24 21
0
0
2,0
4,490
6, 1,9 6,
4,237
0
0
85 98
2
0
9 0
0
0 4,23
7
4,490
6,
0
51
0
253 253 25
47
85
3,933 0 ,54 1
3,759 0 ,713
4 ,2
2
0 0 3 253 253
6,
9
0 0 25
3,933
3,759
37
0 3
6,4
25
4,4 9
0 3
70
0
0
8
43 43 1
22
6,346 6,3 174 74
62
6,3
22 1,1
0
62 1,0
0
6
66 2,36 2,36
2,377
,1
2,3
,0
2,36 2,366
1,122 1
1,062 1
6
77
6
77
2,3
2,3
2,377
2,366
66
2, 3
Case-0 (Present Rail Network, Same as Figure 3.3.16) Case-R1 (+ 6th of October Direct Access Line will open)
3,607 3,607
00 0000 00 0000
0 0
07
07
4 8 1 08
1,44 ,30 1,36
3 ,6
3 ,6
0
0
1 1,3
0
0
1,4
1,3
3
3
7,290
7,373
0 0 00 0 0 00
31
31
1,4 1,3
44
61
07
07
44 29 0 61 29 0
6,983
7,066
1, 1 0 1, 1 0
3,9
3,9
20 29 11 29
1,308
1,308
308 308
1,421
1,348
0 1 3 0 7 1 3 3
30
8 52 1 30
8 59 1
6,
7,
74 74
2, 2,
98
06
8 8
3
6
2 6 0 60
2 6 0 60
1
1
6,983 1,4 7,066 1,3
5
3
6,9 1 7,0 1
18
11
1,200 04 1,117 32
83 66
2,
2,
1
6,983 7,066
1,454 1,372
1 ,3
1,3
15 34
3
1,91
1,98
4
1, 1,
1,308
08
08
2 2
2 2
7
9
4 73 1 921 921 1,42
1
568 05 2,905 2,90
5
0 1, 92 01,
2 ,9
2,
2,363
49
00 00
0
51
1,912 1,912
1,984
9
96
1
0
0
6,982
7,065
21 6 1
0
0
2,0 19
2,511
6, 7,
0
0
499
98 06
3,9
2 5
0
0 499 0
196
91
6,
7,
499 2,511
0
3,896 1,913
98
06
3,933 0
2,181
3,896 3,89 1,91 3 1,91
49
2
6 3
3,933
2,181
9 499
3 ,8 1,9
2,511
96 13
1 ,980
80
9,
7,
1,9
3 3
01
64
,34 6,644 ,34 6,644
2
2
6 6
0
22 1,12
22 1,12
0
7
7
77 2,37 2,37
77 2,37 2,37
,1
,1
2,37 2,377
2,37 2,377
1,122 1
1,122 1
7
7
7
7
2,3
2,3
2,377
2,377
77
77
2,3
2,3
Case-R2 (+ 10th of Ramadan Line will open) Case-R3 (+10th of Ramadan - Helwan Line will open)
3,607 3,607
00 0000 00 0000
0 0
07
07
4 0 8 4 08
1,44 1,44
3 ,6
3 ,6
0
1,3 1,3
0
0
1,4
1,4
3
3
7,290
7,290
0 0 00 0 0 00
31
31
1,4 1,4
44
44
0
07
07
44 29 0 44 1 29 0
29
6,983
6,983
1, 1 0 1 0
3,9
3,9
20 29 29
1,308
1,308
308 308
1,421
1,421
0 0
49
0 1 3 1 3
30
8 52 1 30
8 52 1
6,
6,
74 74
2, 2,
98
98
8 8
1,
3
3
2 6 0 60
2 6 0 60
1
1
20
6,983 1,4 6,983 1,4

3
1 1
0
6,9
11
11
1,200 04 04
83
2,
2,
1
6,983 6,983
1,454 1,454
1,3
1,3
5 5
41 41
1,91
1,91
1, 1,
08
08
2 2
2 2
7
3 21 3 1
,47 1 921 921 1,4 ,47 1 921 921 1,42
0 1 92 0 1 92
49
49
00 00
0
0
1,912
1,912
63 63
9
9
0
2,3 2,3
6,982
6,982
6 6
0
19 19
2,
6, 6,
0
0
499
499
16
98 98
6
2,1
2 2
0
0 499 0 499
196
196
253
66
6,
82
499 499
0
0
51
0
98
47
2,108
2,108
3,896 3,896
5 2,0
2
3,896 3,896 3,896 3,896

49
49
2
6,
2,108
2,108
9 499
9 499
5
6,4
3,8 3,8
1,82
1,82
96 96
70
1 ,825 1 ,825
7,
1,
43 43
64
17
6,644 174
2
6,3 6,3
0
0
22 1,12
22 1,12
7
7
77 2,37 2,37
77 2,37 2,37
,1
,1
2,37 2,377
2,37 2,377
1,122 1
1,122 1
7
7
7
7
2,3
2,3
2,377
2,377
77
77
2,3
2,3
Case-R4 (+10th of Ramadan Direct Access Line Case-R5 (+all new lines will open)
+ 10th of Ramadan - Helwan Line will open)
Figure 3.3.18 Future Volume Flow by Railway in 2022 by Alternative Cases
3-50
FINAL REPORT
Table 3.3.22 shows the total amount of transport cost in Egypt in 2022 by alternative cases.
In Case-R5 (three new lines of railway ([R9] “6th of October Direct Access Line”, [R12] “10th
of Ramadan Direct Access Line” and [SR1] “New Freight Link between 10th of Ramadan and
Helwan” will be opened), the effect of transport cost reduction is worth 102 million LE per
year, the highest value of saving in transport cost in total. The distance of proposed railway
line has a significant impact on the results.
On the contrary, Case R1 (In case 6th of October Direct Access Line will be opened) presents
the most efficient performance of cost saving per unit (km) among five alternatives which can
reach 3.32 LE per kilometer. This result shows a sharp contrast with that in terms of total
cost saving (R5 is the highest one). Further, it should be noted that all cases have produces
notable savings as shown in the same table.
Table 3.3.22 Total Transport Cost by Case in 2022

(Unit: Million LE/year)
Mode Case-0 Case-R1 Case-R2 Case-R3 Case-R4 Case-R5
Truck 8,098 8,012 8,012 8,012 8,012 8,012
Railway 864 867 880 877 873 848
Inland Waterway 41 41 41 41 41 41
Total 9,003 8,920 8,933 8,930 8,926 8,901
Difference with Cost of
- 83 70 73 77 102
Case-0
Length of New Line (km) - 25 30 40 70 95
Cost Saving per km 3.32 2.33 1.83 1.10 1.07
Rank - 1 2 3 4 5
Some explanations of how to read the traffic volume on the figure are given below. For
instance, Case-R5 presents the traffic volumes of 1,308 thousand tons/year, 921 thousand
tons/year, and 499 thousand tons/year for the line sections of (a) Port Said Port (West) – Suez,
(b) Zagazig – Suez, and (c) Port Said Port (West) – Suez, respectively. Then, the following
functions can be identified based on Case-R5 in Figure 3.3.18:
(a) + (b) = 921 thousand tons/year
(a) + (c) = 1,308 thousand tons/year
(b) + (c) = 499 thousand tons/year
Then, we arrive: (a) = 865 thousand tons/year, (b) = 56 thousand tons/year, (c) = 443 thousand
tons/year.
This means that the railway traffic volume of freight for export/import between Ismailia and
Zagazig is composed of (a) = 865 thousand tons/year and (b) = 56 thousand tons/year, and
total volume amounts 921 (=865 + 56) thousand tons/year.
3-51
FINAL REPORT
3.3.6 Inland Waterway Capacity and Transport Demand in 2022

Table 3.3.23 presents a capacity of inland waterway, transport demand of export/import freight
in 2022, and the V/C ratios. Capacity of inland waterway is dependent on that of locks and
its figures in Table 3.3.23 are thus the potential capacity after the repair works of locks. As
of 2007, the JICA Study Team could not confirm the lock repair projects of two major
corridors: Alexandria Port – Cairo and Damietta Port – Cairo, but these figures are the only
one reliable data about the capacity. In this capacity analysis of inland waterway assumes the
lock repair works will be completed by 2022.
Table 3.3.23 Capacity and Transport Demand of Inland Waterway in 2022
Forecast of
Items Capacity of Inland Waterway Export/ Import V/C
Freights in 2022
(twin-unit/ day) 1) (‘000 ton/year)2) (‘000 ton/year)2)
Alexandria Port – Cairo 32 13,920 264 0.02
Damietta Port – Cairo 13 5,655 156 0.03
4)
Upper Egypt - Cairo 12 5,520 261 0.05
Note: 1) “The Development Study on the Inland Waterway System in the Arab Republic of Egypt”, (JICA, 2003.
Figures in this column were calculated based on the navigation conditions after repair works of locks, and
they are thus possible and maximum figures.
2) Dead weight is assumed 1,450 ton/unit, and working days/year is assumed 300 days/year.
3) Forecast results of the JICA Study Team are based on the potential demand of modal shift from other
modes with consideration of commodity features and actual economic growth performance. This
approach is different from the target-oriented approach that pre-sets the targeted shares of inland
waterway service (= 21% both for Alexandria Port – Cairo and Damietta Port – Cairo).
4) This estimation has been carried out assuming that the water depth is dredged to make the practical use of
river transportation.
Forecast volumes of two major corridors account for small share of the potential capacity after
the repair works of locks, and the V/C ratios thus appear very small. With the assumption
that the locks will be improved by 2022, the V/C ratios in Table 3.3.23 are useful to advocate
that the export/import freight volume of inland waterway in 2022 can be smoothly transported
and does not require any further significant improvement project as for the capacity of canal
and lock are concerned.
Besides these factors, there is other factor that constrains the transport capacity of inland
waterway: that is river port. At present, there is no active river port for public use, and it is a
most serious constrain of the inland waterway services near the Greater Cairo Region.
As for the inland waterway route of Upper Egypt – Cairo, no data of transport capacity is
available: however, the width of the River Nile suggests that there is no serious capacity
problem. Besides the canal and lock capacity, other apparent constrain can be a capacity of
river port for freight transport, and no public river port is open to the public as of 2007.
In this capacity analysis of inland waterway, it is assumed that public port for freight will be
available in and around the Greater Cairo Region by 2022.
3-52
FINAL REPORT
3.3.7 Freight Handling Capacity of Logistics Center

This section presents a preliminary capacity estimation of logistics centers that are proposed in
Chapter 4. In determining the freight demand capacity requires a detail OD data of the
delivery trucks (by commodity) that transport the consumer products to/from the Greater Cairo
Region (GCR) i.e. the traffic data inside the GCR: however, the JICA Study prepared only the
OD tables of export/import freights of major export/import commodities and thus they are not
sufficient for this purpose. In addition, the private sector take initiative to establish the
logistics centers and their scales are in general determined by the number of participant
companies (forwarders, truck transport service companies, warehouse companies etc.) based
on their business plans. Land area available can also be a determinant of the scale of
logistics center. The JICA Study could not go into the depth of search on the land acquisition
at the potential area.
The JICA Study approaches thus the required capacity of two logistics centers around the
GCR in a different way than the normal traffic demand forecast employs the computer
simulation.
The JICA Study forecasts that 66 million tons of containers will be transported to/from this
country in 2022, and of which about 8.0 million tons of containers will have origin/destination
in the GCR. Assuming 4.0 million tons of containers are possible to enhance the logistics
efficiency, 2.0 million tons of containers will be required each logistics center in 6th of October
and 10th of Ramadan.
- Envisioned maximum handling capacity at logistics center in 6th of October:
2.0 million tons per year
- Envisioned maximum handling capacity at logistics center in 10th of Ramadan:
2.0 million tons per year
Those figures show accidentally quite similar volumes that are handled at the truck terminals
in the Tokyo metropolitan area as shown in Table 3.3.24. Their actual handling volumes
range from 1.7 million tons of Adachi Terminal to 2.3 million tons of Keihin Terminal.
3-53
FINAL REPORT
Table 3.3.24 Dimensions of Logistics Centers near Metropolitan Tokyo, Japan

Keihin Itabashi Adachi Kasai
Item Total
Terminal Terminal Terminal Terminal
Land Area (sq. meter) 242,068 115,828 113,328 184,976 656,200
Number of Berth 428 320 320 460 1,528
Platform (sq. meter) 35,326 22,200 21,000 33,858 112,384
Truck Handling Space (sq. meter) 64,085 35,437 29,024 48,602 177,148
Terminal Freight Handling Capacity
4,380 2,555 2,555 4,198 13,688
('000 ton/year)
Handling Volume/Capacity in
54% 67% 66% 54% 59%
2007
Distribution Construction Area (sq. meter) 32,398 1,897 - 15,093 49,388
Center Total Flow Area (sq. meter) 120,882 6,477 - 84,848 212,207
Freight Volume in 2006 ('000 ton/year) 2,358 1,715 1,687 2,262 8,022
Number of Trucks in 2006 (vehicles/day) 1,250 982 993 1,046 4,272
Note: Many of these truck terminals are composed of truck terminal and distribution center, and there is
no large scale of warehouses for storage.
Source: Japan Motor Terminal Co.Ltd. (http://www.j-m-t.co.jp/index2.htm)
3-54
FINAL REPORT
3.3.8 Impact of Fuel Subsidy Reduction

One of the reasons of overwhelming share of truck services is attributable to fuel price that is
subsidized. Due to the considerable fuel subsidy, the government can supply the gasoline at
low retail price in 2005 (Figure 3.3.19).
US$ per Gallon
Country Name
Source: Country Report (2006), International Monetary Fund (IMF)
Figure 3.3.19 Comparison of Retail Gasoline Price
In cases where the fuel subsidy is reduced to the international price level, the government
expenditure equivalent to tax amount is expected to be shifted to other sectors5.
In the condition of present transport cost system, transportation costs of railway and inland
waterway will be equal to those of the truck when their travel distances reach 342 km and 267
km respectively. Since the distance between Cairo and major ports as shown in Table 3.3.25
is shorter than these distances, the modal shift will not happen easily under this condition.
Table 3.3.25 Distance between Cairo and Major Ports
(Unit: km)
Mode Alexandria Damietta Port Said Suez Sokhna
Truck 220 200 200 140 140
Railway 210 220 240 170-250* 220-300*
Inland W.Way 220 250 - - -
(*) The distance is different depending on the degree of the newly open of the railway line.
Moreover, because the Government of Egypt is paying the subsidy of 72.6% of the diesel oil
price, the transport cost for truck is cheaper than other modes now. Therefore, if it is possible
to cut the subsidy, the domination of transport by trucks will fall and the modal shift to railway
and inland waterway will be promoted consequently.
For instance, when the subsidy is reduced up to 50% of the diesel oil price, the competitive
distance for railway and inland waterway falls down to 342 km and 309 km, and if the subsidy
is cut completely, the break even distance falls to 267 km and 242 km. This relationship is
shown in Figure 3.3.20. The estimation method for the change of break even distance is
5
According to United Nation Environment Programme, gradual energy subsidy removal (reduction) in some countries has
proceeded along with compensatory measures to support segments of society that are negatively affected.
3-55
FINAL REPORT
shown in Appendix-3.
In order to reduce the transport cost of railway and inland waterway and make them
competitive with road transport, it is necessary to explore other means such as reduction of
handling charge for reloading between truck and other modes.
In case the handling charge is discounted to 15 LE/ton (40% off), the break even distance
between truck and railway, truck and waterway are shortened to 213 km and 167 km
respectively. These results imply that modal shift is possible between GCR and major ports.
This scheme however is very difficult to achieve. The hope here is that as the business
involving transferring of freight from one mode to another thrives, the cost will naturally
decreases. Of course other creative means such as subsidy policy shall also be explored.
360
340
Competitve Distance km
Railw ay
320
300
280
260
240
220
IWT
200
180
80 60 40 20 0
Subs idy %

Figure 3.3.20 Change of Break Even Distance according to the Subsidy Reduction
In addition, if the logistic center (LC) will be opened around the Cairo and the customs
clearance work of a lot of containers will be operated with LC, the feeder transport between
LC and shippers will be done by trucks. In this case, handling cost between the trunk
transports by each mode and feeder transport will be same, the shipper can decide the trunk
transport mode in consideration of the line haul cost and transport time by each mode.
3-56

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TRANSPORT PLANNING AUTHORITY

JAPAN INTERNATIONAL COOPERATION AGENCY

NIPPON KOEI CO., LTD.

JAPAN INTERNATIONAL COOPERATION AGENCY

NIPPON KOEI CO., LTD.

Mr. Seiichi Nagatsuka

Very truly yours,

Future Expansion KGL Container

 Lack of Container Handling Equipment

Industrial Area: 800ha 10th of Ramadan

Direct Access Line Direct Access Line

New River Port

Development of Access Channel al Factories Existing

Warehouses and factories

dit a (Free Zone Area)

at 10th of Ramadan Development of

Regional Ring Road

Example of Logistics Center

Port Said Port (West)

R13 Railway Improvement Project

R12 10th of Ramadan Direct Access Line

L2 Logistics Center Development

Alexandria Port SR1 New Freight Link Study (10th of Ramadan

R11 Sadat City Access Line Construction Project

W13 New River Port Construction Project Legend

Note: Project written by bold face

Project Location Map

The Study on Multimodal Transport and Logistics System

Chapter 1 Introduction .............................................................................................. 1-1

Chapter 2 Role of Logistics in Egypt and Improvement Needs ............................... 2-1

Chapter 3 Demand Forecast for Export and Import Freight................................... 3-1

Chapter 4 Logistics-related Facilities and Operation: Land Transport .................. 4-1

4.4.3 Ongoing Projects.......................................................................................... 4-38

Chapter 5 Port-related Logistics System................................................................... 5-1

Chapter 6 Customs Clearance System ...................................................................... 6-1

6.2.4 Apparent Problems ......................................................................................... 6-5

Chapter 7 Freight Forwarding Industry................................................................... 7-1

Chapter 8 Private Sector Role in Egypt’s Inter-modal Logistics System................. 8-1

Chapter 9 Logistics Development Strategy in Egypt ................................................ 9-1

Chapter 10 Priority Projects and Implementation Program ................................... 10-1

10.4 Implementation Schedule ........................................................................................ 10-23

Chapter 11 Conclusions and Recommendations .......................................................11-1

Appendix-1 Interview Surveys

Table 4.1.1 Mode Share of Freight Transport in Egypt........................................................... 4-2

Table 5.2.10 Summary of Future Development Plans for Ports.............................................. 5-38

Figure 4.4.4 IWT and Locations of Planned Ports ................................................................. 4-37

IC/R : Inception Report

NSA : Norwegian Shipping Academy

UNCITRAL : United Nations Commission on International Trade Law

1.1 Outline of the JICA Study

1.1.2 Objectives of the JICA Study

(1) Superior Objective

1.1.3 Study Area

(1) Export and import volumes by commodity type

Task1: Preparatory Work

Submission of Modified Interim Report Workshop

Task3: Formulation of Future Logistics Growth Scenarios

Task4: Formulation of Multimodal Transport and Logistics Development Plan

November Submission and Discussion of Draft Final Report DF/R

February Submission of Revised Draft Final Report Revised

August Submission of Final Report F/R

Source: JICA Study Team

Lack of Container Handling Equipment