Logistics costs in Egypt could see a significant reduction of 15% to 25% across various sectors, according to Abir Leheta, CEO of Egyptian Transport and Commercial Services Company (EGYtrans). Speaking at the sixth annual Hapi Conference, Leheta highlighted that logistics services currently make up a substantial 30% to 35% of the total cost of products.
Leheta pointed to inefficiencies within the logistics sector as a key factor driving up costs. She noted that more than 30% of vehicles return empty after completing deliveries, a practice that unnecessarily inflates operating expenses and contributes to broader inflationary pressures. This wasteful practice, she explained, exacerbates the cost burden on goods and reduces the overall efficiency of the supply chain.
However, Leheta remained optimistic about the potential for improvement, stressing that better organization and the adoption of advanced technological tools could dramatically streamline operations, optimize resource use, and reduce transportation costs.
EGYtrans, which offers a wide range of services including international sea, air, and land transportation, customs clearance, and warehousing, is positioned to lead the charge in driving efficiency within Egypt’s logistics sector. The company’s efforts are part of a broader trend in the country’s push to modernize and strengthen its logistics infrastructure, which could ultimately ease cost pressures and benefit the economy as a whole.
