DP World Strengthens Egypt’s Logistics Sector with Launch of First Integrated Distribution Centre
CAIRO: DP World has officially inaugurated Egypt’s first fully integrated Logistics Distribution Centre (LDC) at Sokhna Logistics Park, a pivotal development in the nation’s logistics landscape. This facility is designed to facilitate international companies’ access to the Egyptian market while serving regional and global customers from a centralized distribution hub.
The launch event was attended by Dr. Mostafa Madbouly, the Prime Minister of Egypt, alongside senior government officials and representatives from various international firms. This occasion also marked the first visit to Egypt by Essa Kazim, who recently took on the role of Chairman of DP World. During the ceremony, agreements were signed with the first three global customers set to utilize the services of the Logistics Distribution Centre.
Comprehensive Supply Chain Solutions
The Logistics Distribution Centre offers a comprehensive end-to-end supply chain solution that includes international freight forwarding, port services at Sokhna Port, warehousing, inventory management, order fulfillment, customs facilitation, transportation coordination, and various value-added services such as assembly, packaging, repackaging, labeling, and product customization. This integrated approach allows companies to efficiently serve local, regional, and international markets from a single location while maintaining ownership of their inventory until final distribution.
Strategically located adjacent to Sokhna Port within the Suez Canal Economic Zone, the LDC benefits from direct access to one of the world’s most significant trade corridors, enhancing its connectivity to regional and international markets.
Confidence in Egypt as a Logistics Hub
Essa Kazim stated that the launch signifies a new chapter in DP World’s enduring partnership with Egypt, emphasizing the country’s importance as a key investment destination in the region. He expressed confidence in Egypt’s potential to emerge as a global hub for trade, industry, and logistics. Kazim highlighted that the LDC embodies their vision of creating an integrated ecosystem that connects ports, logistics, and supply chain solutions, thereby enabling businesses to access various markets more effectively.
The agreements signed during the launch reflect a growing confidence in Egypt as a regional logistics hub. The LDC has already attracted a diverse range of international customers, including a prominent Kenya-based tea exporter that serves markets across Africa, the Middle East, and Europe. This company, which handles approximately 1,000 TEUs annually into Egypt, will use the facility as a regional inventory hub to facilitate more efficient distribution to multiple international markets.
Diverse Clientele and Enhanced Operations
Another notable customer is a leading global consumer goods distributor, which will utilize the LDC to support operations across eight markets, including Saudi Arabia, the Levant, and the Horn of Africa. This company’s activities will be bolstered by a dedicated temperature-controlled facility within Sokhna Logistics Park.
Additionally, a German multinational specializing in fiber-optic cables and digital infrastructure solutions will leverage the logistics centre to enhance its distribution and re-export capabilities across Egypt, North Africa, and the Gulf Cooperation Council countries.
Mohammad Shihab, Executive Vice President for Egypt and the Levant at DP World, remarked that the launch of the LDC at Sokhna Logistics Park significantly strengthens Egypt’s trade and logistics capabilities. He noted that the facility enables businesses to position inventory closer to customers and serve multiple markets from a single regional hub. This integrated model is expected to improve efficiency and flexibility while reinforcing Egypt’s strategic role as a gateway connecting Asia, Africa, and Europe.
Investment in Infrastructure
Shihab also expressed gratitude to the Egyptian Government for its support in facilitating this initiative, which aims to attract investment, promote industrial growth, and enhance Egypt’s competitiveness. By positioning inventory and raw materials closer to manufacturing centers and end markets, the Logistics Distribution Centre is set to reduce lead times, bolster supply chain resilience, and ensure business continuity. This development will also strengthen local industries by providing faster and more reliable access to essential inputs and materials, further solidifying Egypt’s status as a regional trade and logistics hub.
DP World has committed over USD 1.4 billion to integrated logistics infrastructure across Egypt. This investment includes the expansion and modernization of Sokhna Port, the development of Sokhna Logistics Park, and a new cold chain facility currently under construction. Together with DP World’s freight forwarding, contract logistics, and end-to-end supply chain services, this integrated network aims to enhance operational efficiency, reduce costs, and improve export competitiveness, allowing businesses to seamlessly access both regional and global markets.
Source: www.zawya.com
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Published on 2026-07-02 08:04:00 • By the Editorial Desk
