Political uncertainty will continue to affect the Egyptian economy in 2014 as the country continues through its rocky transitional period towards democracy. However, the election of former field marshall Sisi to the presidency following elections at the end of May will serve to reduce political risk and will introduce a measure of stability not seen since the ouster of President Mubarak in 2011. His election will provide a veneer of political legitimacy, thereby releasing US aid flows, and should help the economy get back on track. A recovering economy will be felt in the country's ports and in its shipping services, as consumer demand and investment into infrastructure picks up, thereby boosting container and dry and liquid bulk shipping services.
Increased security would help in reviving tourism, and other industries, and serve to boost container volumes through Egypt's ports. Equally, should investment start flowing into the country once more then dry bulk volumes for infrastructure projects could also see an uptick.
The presence of the Suez Canal in Egyptian territory provides an important source of income in fees and associated businesses to the Egyptian economy; those ports expected to see strongest growth in 2014 are those located near the canal, such as East Port Said, which will also benefit from the improved global macroeconomic picture.
Headline Industry Data
2014 total tonnage throughput at el-Dekheila is forecast to grow by 1.0% to 25.71mn tonnes, and to average 2.2% per annum to 2018.
2014 East Port Said container throughput growth forecast at 6.2% to reach 3.29mn twenty-foot equivalent units (TEUs), and to average 6.8% growth to 2018.
2014 Egyptian trade forecast to grow by 2.4%, and to average growth of 4.7% over the medium term.
Key Industry Trends
Damietta Port Authority Floats Tender For New Terminal Project: Egypt's Damietta Port Authority has invited bids for a construction, operation and transfer contract for a new terminal. The...