Recent years have seen a proliferation of container terminals in Egypt, a development that, according to a report by Alphaliner, might lead to overcapacity should the ongoing Red Sea crisis persist and deter mainline operators from the Suez Canal route. In 2023, the Egyptian container ports handled approximately 8.37 million TEUs, with the lion's share of 88% being processed through key ports such as Alexandria, El Dekheila, Damietta, and Port Said. Despite the Red Sea Crisis and subsequent vessel rerouting via the Cape of Good Hope, last year's throughput remained largely stable, though it did impact Egypt's stature as a Southeast Mediterranean hub.
Historically, global carriers had limited engagement with Egyptian Mediterranean ports, with the exception of Maersk and COSCO holding stakes in SCCT Port Said. This dynamic has shifted following CMA CGM's investment in Trans Misr Terminal (TMT) Alexandria and Evergreen Marine Corporation's stake in HPH Abu Qir. Additionally, Hapag-Lloyd and MSC are spearheading two significant terminal projects, Damietta Alliance and El Dekheila Pier 100, which are anticipated to alter the operational patterns of mainline operators at these Egyptian terminals.
The strategic positioning of the Nile River Delta ports, near the Mediterranean's southeast and the northern entrance of the Suez Canal, underscores their importance in container liner shipping. The influx of new terminals and ongoing expansions suggest a pivotal role for Egypt's ports as both Mediterranean hubs and gateways to the nation's burgeoning population.
Alphaliner highlights the potential for overcapacity, pointing to the nine operational container terminals spanning from El Dekhelia to Port Said, and the ongoing development of two additional terminals in the Nile River Delta. These expansions, coupled with the recent launch of TMT Alexandria and the Hutchison terminal at Abu Qir, are set to augment the Egyptian Mediterranean ports' annual handling capacity by approximately 10 million TEU in the coming years. This expansion includes conservative estimates for the capacities of newly operational terminals like TMT Alexandria and the forthcoming Pier 100 at El Dekhelia, which are expected to significantly increase annual container movements.
Source: Container News