With many container terminals opening in Egypt in recent years, there could be overcapacity if the Red Sea crisis continues and mainline operators shy away from the Suez Canal, according to Alphaliner’s report.
In 2023, Egyptian container ports processed around 8.37 million TEUs, of which 88% passed through Alexandria, El Dekheila, Damietta and Port Said.
Last year’s volumes were, however, largely unaffected by the Red Sea Crisis and the vessel diversions via the Cape of Good Hope, which came at the expense of the Suez Canal, weakened Egypt’s role as a Southeast Mediterranean hub.
Traditionally, carriers were not very much invested in Egypt’s Mediterranean ports, except Maersk and COSCO, which have respective stakes of 50% and 25% in SCCT Port Said.
However, this changed with CMA CGM’s investment in Trans Misr Terminal (TMT) Alexandria and Evergreen Marine Corporation becoming a shareholder of HPH Abu Qir. Further to this, Hapag-Lloyd and MSC are involved in two large-scale terminal development projects, Damietta Alliance and El Dekheila Pier 100. Once these are open, mainline operators’ usage of the Egyptian Mediterranean terminals is expected to see some major pattern shifts.
The Nile River Delta ports, strategically located southeast of the Mediterranean and close to the northern terminus of the Suez Canal, have traditionally played a major role in container liner shipping.
With many container terminals established, recently-opened, or being built, Egypt’s ports might play an even more important role in the future, both as Mediterranean hubs, and gateways into a country with a growing population.
Alphaliner said: “The number of recently completed and ongoing projects, and the open question as to when the majority of Asia-Europe liner services will return to the Suez Canal, nevertheless raises the spectre of overcapacity in the port sector. No fewer than nine container terminals are currently in operation at (from west to east) El Dekhelia, Alexandria, Abu Qir, Damietta, and Port Said.”
In addition to these, two new terminal projects are under development in the Nile River Delta. Compared to mid-2023, before the launch of TMT Alexandria and the Hutchison terminal at Abu Qir, new facilities and ongoing expansions of existing piers will add around 10 million TEU of annual handling capacity to the Egyptian Mediterranean ports within only a few years. This number includes very conservative capacities reported for recently launched terminals such as TMT Alexandria, and for the upcoming Pier 100 at El Dekhelia, which facilitate several extra million annual container movements.
Martina Li
Asia Correspondent
