Egypt has unveiled an ambitious $800 million project to develop advanced logistics hubs along its southern border with Sudan.
The initiative, spearheaded by the General Authority for Investment and Free Zones, aims to bolster intra-African trade and improve logistical connectivity across the continent.
The plan involves constructing two state-of-the-art logistics centers, each costing $400 million, in the border regions of Qastal and Arqin, located in the Aswan Governorate.
Each hub will span 300 acres and feature integrated facilities designed to support multimodal transport, reduce shipping costs, and alleviate congestion at land ports.
Strengthening Trade Infrastructure
This large-scale project forms part of Egypt’s broader strategy to enhance its border infrastructure.
The development also complements other initiatives, such as an exchange station in Abu Simbel and a new river dock in Sudan’s Wadi Halfa port.
Crucially, these efforts align with the Cairo-Cape Town axis, a major artery envisioned to drive trade across Africa.
The logistics hubs will be developed under a public-private partnership (PPP) model, reflecting Egypt’s commitment to fostering collaboration between public institutions and private enterprises.
The facilities are expected to streamline the movement of goods across the Egypt-Sudan border, facilitating faster and more efficient loading and unloading operations.
Economic Impact
Egypt’s trade relations with Africa have seen robust growth.
Trade volumes between Egypt and African Union nations reached $9.2 billion in 2023, marking a 5.7% increase from the previous year.
Egyptian exports to the continent rose by 15.6%, totaling $7.4 billion, and represented 7% of the country’s overall foreign trade during the January-August 2023 period, valued at approximately $5.8 billion.
The new logistics centers are poised to further strengthen Egypt’s economic ties with its neighbors, serving as critical nodes in the continent’s burgeoning trade network and supporting Egypt’s vision of becoming a regional trade and logistics hub.
