Geopolitical Shifts Boost Egypt–Saudi Arabia Trade Through Regional Transport Corridors
Shipping Arabia, November 10, 2026 – Regional geopolitical developments are driving increased cargo and passenger traffic through transport corridors connecting Egypt with Saudi Arabia and Jordan, according to Egypt’s Minister of Transport, Kamel El-Wazir. The growing reliance on these routes is strengthening maritime and land transport connections between Egypt, Gulf markets and Europe.
Speaking on the sidelines of the 39th Arab Transport Ministers Council meeting in Alexandria, El-Wazir said regional developments have increased the importance of these corridors as alternative routes for international trade. He highlighted their role in facilitating cargo movements between Egypt and Saudi Arabia while providing additional connections to European markets.
The minister said the increased use of these transport links has contributed to higher cargo throughput at Egyptian Red Sea ports. Trade volumes have also grown along transport routes connecting Egypt with Saudi Arabia and Jordan.
Egypt–Saudi Arabia Trade Corridors Strengthen Regional Connectivity
Egypt’s multimodal transport network allows cargo originating in Europe to enter the country through the Port of Alexandria before moving overland to Egyptian Red Sea ports. From there, shipments continue by sea to Saudi Arabia, providing an alternative route between European and Gulf markets.
El-Wazir explained that this arrangement supports cargo movements through an integrated network of maritime and land transport services. The system also strengthens connections between Egypt’s Mediterranean and Red Sea ports, enabling cargo to move between the two maritime regions.
The minister emphasized that regional geopolitical developments have increased demand for these alternative transport corridors. As a result, Egyptian Red Sea ports are handling growing cargo volumes, while transport connections with Saudi Arabia and Jordan are experiencing higher trade activity.
Egypt’s Ministry of Transport aims to expand maritime connectivity with other Arab countries as part of its broader strategy to strengthen regional trade integration. The ministry also plans to develop additional routes for cargo and passenger transport while improving the efficiency of logistics services.
Port Development Targets 400 Million Tonnes of Annual Capacity
Egypt is pursuing an extensive port development program designed to increase maritime handling capacity and strengthen the country’s position in regional and international trade.
According to the Ministry of Transport, the government’s development strategy targets approximately 400 million tonnes of annual cargo handling capacity across Egyptian ports. It also aims to increase container handling capacity to 40 million twenty-foot equivalent units (TEU).
The targets include the capacity to accommodate approximately 10 million TEU of transit cargo annually and handle around 30,000 large vessels each year.
Private-sector participation forms a central part of the government’s approach. New maritime terminals and berths are being assigned to partnerships involving international shipping companies and Egyptian businesses under concession agreements extending up to 30 years.
The ministry is also continuing investment in maritime infrastructure. According to information previously obtained by Al Mal, Egypt plans to invest approximately EGP 13.2 billion during the current fiscal year to complete ongoing port development projects.
The investment program prioritizes projects at Alexandria, Damietta and Egyptian Red Sea ports. These developments form part of the government’s broader efforts to expand port capacity and improve maritime transport infrastructure.
Alongside infrastructure development, the Ministry of Transport plans to introduce additional shipping services connecting Egyptian ports with markets in East and West Africa.
The ministry is also targeting an Egyptian merchant fleet of 36 vessels by 2030. According to earlier statements by El-Wazir, the planned fleet would have the capacity to transport approximately 25 million tonnes of essential commodities for the domestic market.
EGP 50 Million Shipping Company Planned for East African Trade
As part of its maritime connectivity strategy, Egypt is advancing plans to establish a company with capital of approximately EGP 50 million to manage and operate specialized commercial vessels.
The proposed company will support a new shipping service connecting Egyptian ports with East African markets. Its activities will focus particularly on transporting live animals and Egyptian goods.
According to information previously reported by Al Mal, the proposed ownership structure allocates 15% of the company to the Holding Company for Maritime and Land Transport and 35% to its subsidiary, Canal Shipping Agencies Company.
The remaining 50% will be held by private-sector partner Trust for Trade and Transport.
Sources told Al Mal that the shareholders have already provided the planned capital. A consulting firm has also been appointed to begin incorporation procedures while detailed studies of potential partnerships proceed.
The studies will identify the markets and ports to be served by the proposed shipping line. They will also determine the appropriate vessel types for the company’s operations, particularly those involving livestock and Egyptian cargo.
The company is expected to commence operations during the first half of 2027, subject to completion of incorporation procedures and the necessary technical and operational studies.
Safaga Port to Serve as Initial Gateway for New Shipping Service
Safaga Port is expected to serve as the initial receiving port for vessels operating under the planned East African shipping service.
The Ministry of Transport intends to expand the arrangements subsequently to other Egyptian Red Sea ports, extending the geographic reach of the new operation.
The proposed company will undertake a broader range of maritime and logistics activities beyond vessel operations.
According to previous statements by El-Wazir, its responsibilities will include managing specialized commercial vessels and providing related shipping services, particularly ship agency operations and customs clearance for imported and exported cargo.
The company will also provide domestic logistics services, including transportation and storage. In addition, it will coordinate with ports, customs authorities, veterinary services and other regulatory bodies involved in the movement of vessels and cargo.
These responsibilities are intended to establish an integrated service framework covering vessel handling, cargo movement and associated logistics requirements.
Through the planned company, the Ministry of Transport aims to strengthen maritime trade between Egypt and East African countries. The initiative is also intended to create additional shipping routes for Egyptian exports while supporting the development of logistics services associated with the new trade connections.
Together with the expansion of Egypt–Saudi Arabia transport corridors and continuing port infrastructure development, these initiatives form part of Egypt’s strategy to strengthen maritime connectivity with Arab and African markets.
Source: Al Mal