- Egypt’s green canal initiative showcases how substantial port upgrades and investments in green energy can transform Africa’s trade routes and support a low-carbon future.
- This initiative highlights how strategic geography and strong public-private partnerships can create a competitive maritime hub.
Egypt has taken a decisive step to strengthen its position as a global logistics centre. President Abdel Fattah Al-Sisi inaugurated several new seaports in the Suez Canal Economic Zone (SCZone) in eastern Port Said on November 17, 2025.
The move completes a ten-year national strategy aimed at managing rising trade volumes. It also reinforces Egypt’s ambition to drive sustainable trade and green energy development across the continent.
The port modernisation programme includes upgrades to fourteen ports and the construction of five new ones. It aims to position Egypt as a world-class hub for transit and logistics. This multi-billion-dollar effort focuses on improving maritime efficiency. More than 90% of global trade by volume is transported by sea, making efficient ports essential for economic stability and long-term growth.
The importance of Egypt’s progress becomes clearer when compared with Africa’s wider logistics challenges. North African ports such as Port Said and Morocco’s Tangier Med perform exceptionally well. Port Said ranks third worldwide in the 2024 Container Port Performance Index.
Yet major sub-Saharan ports still face persistent problems. Durban, Lagos, Mombasa and Tema struggle with congestion, limited capacity and slow vessel turnaround times. Durban handles nearly 2.9 million TEUs but continues to suffer from efficiency issues. Mombasa and Tema also face pressure as they serve landlocked markets.
Egypt’s investment in the SCZone creates strong competition across the continent. It encourages other African ports to accelerate infrastructure upgrades and improve digital systems. Better port performance lowers the cost of goods, which is vital for trade under the African Continental Free Trade Area (AfCFTA).
The environmental element of the strategy is equally important. President Al-Sisi confirmed that Maersk will expand investment in Egypt. The company previously committed USD 15 billion to green energy and clean maritime fuels.
As global rules on carbon emissions tighten, ports that can offer green hydrogen and green ammonia will stand out. Egypt’s strong solar and wind potential supports its ambition to become a key bunkering hub for zero-carbon fuels along the Asia–Europe route.
Egypt is also linking this green fuel network with a new high-speed electric rail system, the “Suez Canal on Rails”. The plan aims to create a low-carbon logistics corridor that connects production centres with major ports.
Minister of Industry and Transport Kamel Al-Wazir stated that the national strategy aims to transform ports into advanced logistics corridors. These corridors will connect industrial zones to seaports via sustainable transportation systems.
Olivier de Noray, Chairman of the Suez Canal Car Handling Company (SCAT), added that the SCZone will become a major hub for automotive production and export. East Port Said’s new quay capacity, now reaching 7 million TEUs, strengthens this ambition.
Egypt’s decade of investment offers a model for other African nations. By combining strategic geography with sustainable operations, the SCZone shows how Africa can overcome long-standing logistical barriers and secure a stronger place in the global economy.