Published on 19 Aug 2025

Japanese-backed vehicle logistics terminal opens in Egypt

Cairo eyes exporting up to 125,000 vehicles per year by 2030

Photo source: Toyota Tsusho

Egypt’s first automotive logistics terminal, jointly owned by Japanese companies Toyota Tsusho and shipping group Nippon Yusen Kaisha (NYK Line) alongside France-based firm Africa Global Logistics, has begun operations at East Port Said, located at the northern entrance to the Suez Canal.

Designed to handle the import, export and transshipment of vehicles, the Suez Canal Automotive Terminal is expected to strengthen Egypt’s position as a logistics hub in North Africa and the eastern Mediterranean region. The terminal can accommodate two large car carriers at once and store up to 2,550 vehicles, with capacity set to expand to 10,000 in later phases.

The Egyptian domestic automotive market is expanding. The economy is projected to grow at an average of 4.8% a year between 2025 and 2030, with the population rising from around 109m to 122m over the same period. Alexandria Port currently handles most of Egypt’s imported vehicles, but as a multipurpose facility, it faces persistent issues with limited and non-dedicated storage space for cars.

At the same time, Egypt’s vehicle manufacturing sector is gaining momentum, creating scope for increased exports. The government’s national automotive strategy for 2024–2030 targets annual production of between 400,000 and 500,000 vehicles, with 25% intended for the international market. Several global brands already assemble cars in Egypt. Nissan produces the Sunny model of with about 40% is exported, while Stellantis last year announced plans to assemble the Jeep Grand Cherokee. General Motors and Mercedes-Benz vehicles are also manufactured in the North African country. Meanwhile, Chinese electric vehicle maker BAIC has partnered with a local company to build a factory that is scheduled to begin production by the end of 2025. The facility will initially produce 20,000 vehicles a year for domestic use and export to the Middle East and the rest of Africa.

In addition to serving Egypt’s vehicle imports and exports, the new terminal will also handle transshipments – vehicles in transit to other destinations in Europe and the wider Mediterranean region. The government aims to transform East Port Said into a key hub for this type of cargo. The port already hosts a container terminal operated by AP Moller and Maersk which is largely dedicated to transshipment. Nearby in Damietta, German shipping company Hapag-Lloyd is also investing in a separate transshipment terminal with an annual handling capacity of 3.3m containers.

The African auto industry, which is valued at more than US$40bn, is expected to grow to US$42.06bn in the next two years. The average annual demand for vehicles in Africa is estimated to be 2.4m but most of this is met by used car imports. Manufacturing and production of automobiles, however, is growing at rapid rate of 7% annually. South Africa and Morocco together account for 80% of the automobile production.

References

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