The past year has presented a complex landscape for global logistics, marked by supply chain disruptions, inflationary pressures, and fluctuating fuel prices. The Middle East and the Suez Canal were the hotspots for major geopolitical plays that had a major impact on Egypt’s project cargo sector. Despite these challenges, the likes of EWA Group have demonstrated resilience and adaptability, leveraging expertise in heavy lift and project logistics to maintain smooth operations. “Our strategic partnerships and proactive planning allowed us to maintain smooth operations, ensuring timely project execution despite economic pressures and logistical bottlenecks,” Adham Ghoneim, Business Development Manager, El Wafaa Transport, said.
Overcoming key sector challenges in Egypt
Egypt’s project cargo and logistics sectors currently face several significant hurdles. One primary issue is the ongoing port congestion and customs delays. While improvements have been implemented, optimizing clearance processes remains essential, Ghoneim said. Additionally, daily route renovations and reconstruction along the turbine component routes from Adabiya Port to Ras Ghareb present operational complexities. Fluctuations in currency exchange rates also significantly impact import costs for specialized equipment, adding another layer of financial complexity. EWA Group actively addresses these issues through meticulous logistics planning, robust government collaborations, and investments in cutting-edge transport solutions. Another major challenge is the limited availability of specialized transport equipment, Ghoneim said. The increasing demand for heavy lift solutions requires continuous fleet expansion to meet the growing needs of various industries. Furthermore, navigating regulatory complexities, particularly obtaining approvals for oversized cargo movement, can be time-consuming.
Global comparisons and infrastructure development
While Europe grapples with severe driver shortages, Egypt faces a different scenario. There is an increasing need for skilled, certified drivers for specialized heavy lift transport, making training and workforce development a key priority. In Africa, the challenges vary by country, with some regions experiencing a lack of qualified drivers and inconsistent road infrastructure, impacting overall project logistics. Similarly, while Europe struggles with bureaucratic red tape and lengthy permit processes, Egypt has made strides in streamlining customs and permit procedures. Compared to Europe, Egypt’s approval processes are often faster, especially for projects of national significance like renewable energy. However, bureaucratic delays can still occur, particularly for oversized cargo and specialized transport. Egypt has made substantial investments in infrastructure, enhancing ports, roads, and logistics hubs to facilitate project cargo movement. Despite these advancements, challenges remain in last-mile connectivity and heavy lift transport routes, necessitating continued development.
Driving demand across key industries
Ghoneim mentioned that EWA Group is currently engaged in various projects across multiple industries. In the renewable energy sector, EWA Group supports wind, nuclear, and solar projects with specialized transport solutions and is the exclusive logistics partner for the El Dabaa Nuclear Plant. The oil and gas sector sees EWA Group handling logistics for large-scale refinery and pipeline projects. In infrastructure and construction, EWA Group facilitates the movement of oversized components for bridges, industrial plants, and transportation networks, currently transporting steel beams for the Khor Mayo Bridge, the highest in Egypt. Additionally, the manufacturing and industrial sectors benefit from EWA Group’s expertise in managing the logistics of heavy machinery, heavy transformers, and factory relocations. The key sectors driving demand for project logistics in Egypt include renewable energy, oil and gas, construction and infrastructure, and power and utilities. Egypt’s push towards 14 GW of wind power by 2030 and increasing solar capacity is fueling significant logistics demand. Continued investments in energy infrastructure, large-scale road, bridge, and industrial developments, and the expansion of power plants and grid infrastructure all necessitate complex logistics planning, keeping EWA Group busy for the time to come.
Think deeply on the implications for markets.
This news underscores the critical role of logistics in Egypt’s economic development and highlights the country’s potential as a regional logistics hub. The resilience shown by companies like EWA Group in navigating complex challenges sets a benchmark for the industry. As Egypt continues to invest in infrastructure and renewable energy, the demand for specialized logistics will likely surge, attracting more players to the market. This could foster competition, drive innovation, and potentially reduce costs, making Egypt more attractive for international projects.
Moreover, the streamlining of customs and permit procedures signals a positive shift towards a more business-friendly environment. If Egypt can maintain this momentum and address remaining bureaucratic hur