Egypt is investing heavily in rail and logistics infrastructure as it looks to reduce the impact of disruptions around the Suez Canal and strengthen its position as a global trade hub.
The Suez Canal normally handles about 12% of global maritime trade, but security disruptions in the Red Sea have forced ships to take longer routes around the Cape of Good Hope. The shift has reduced canal revenues and added pressure to global supply chains.
In response, Egypt is developing an overland trade network that could allow cargo to move between its Red Sea and Mediterranean ports by rail.
At the centre of the project is an 8.7-billion-dollar (about R146 billion) electrified high-speed rail line stretching roughly 2,000 kilometres across Egypt. Dubbed the “Suez Canal on Rails”, the network will connect Red Sea ports with Mediterranean export terminals.
Once fully operational, the rail system is expected to transport up to 13 million tonnes of freight each year, giving businesses an alternative route when maritime trade faces disruptions.
Egyptian Minister of Economy and Planning Ahmed Rostom said the country has also invested in roads, ports and railways to give trading partners more options for moving goods across Egypt and accessing European markets through the Mediterranean.
The wider network is linked to the Suez Canal Economic Zone, which has attracted more than $16 billion (about R270 billion) in investment.
Egypt sees the infrastructure as more than a response to current shipping challenges. Under the African Continental Free Trade Area, improved rail and port connections could eventually link North African trade routes with markets in East and sub-Saharan Africa.
By expanding its logistics network, Egypt hopes to turn its geographic position between the Red Sea and Mediterranean into a stronger advantage for African and global trade.
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