The Egyptian economy rely on its revenue from petroleum export, tourism, foreign direct investment, remittance of the Egyptians working in foreign countries and revenue from the Suez Canal.
Example of some figures:-
- Petroleum exports decreased by 3.5 billion dollars
- The tourism sector witnessed a 3.1% drop
- Earnings of the Suez Canal decreased by 8.4% compared to last year
Despite the current recession, there are also several good developments:
Economic Reform:
Restructure of the financial sector, adjusting regulations, enhancing trade liberalization and privatization of most state-owned enterprises.
Trade Agreements:
A number of trade agreements with Arab, European, Asian, African; North and South American countries are in place and more are under negotiation.
Changes in Trade Flows:
- Export to Arab countries exceeded exports to EU for the first time.
- Saudi Arabia is No.1 trading partner with Egypt.
- This change in trade flows compensated losses resulting from global crisis.
Infrastructure Developments
Major investments are channeled to upgrade the transportation infrastructure in Egypt to capitalize on Egypt’s unique geographic location.
Ports and Terminals:
Egypt has 15 commercial ports and 30 specialized ports. The government is investing US$ 8 billion in ports until 2011, of which US$ 3.7 billion has already been invested up to 2008. Several global players have already made sizable investments in Egyptian ports.
- AP Moeller is doubling its capacity at the East Port Said Terminal by 2011.
- DP World acquired 90% stake in the Sokhna Port located near the Suez Canal.
- HPH invested in two terminals in Alexandria and Dekheila and is planning for expansion of their Dekheila terminal.
- KGL is investing in a new container terminal in Damietta.
- Project which will be tendered soon: Fresh fruit terminal in the port of Alexandria, liquid bulk terminal in Port Said East, general cargo Terminal in Damietta.
Business Strategy in 2010
- Developing the current activities and regaining volume or clients lost in 2009:-
- LCL Biz
- Forwarding activities
- Trucking
- Warehousing
- Improve our customer service to ensure our competitiveness.
- Need to focus more on developing our marketing and sales activities in Cairo for both LCL and forwarding activities.
- To study the productivity of our clients during 2008-2009 and to re-secure any lost clients for all our activities.
- Need to focus more on offering a complete logistics solution.
New Trade Lanes
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Need to maximize the benefit from:-
- The current network of offices and agents through direct contact and visits using CWT Cross Deployment program.
- CWT brand name and other companies related to CWT Group.
- Need to develop four LCL import trade lanes during 2010 that will assist us to develop our LCL Service other activities such as (Trucks, CFS etc.)
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