The Ro-Ro Effect: Egypt's rise as a global logistics hub

Zawya

20-05-2025

In recent years, Egypt has embarked on a transformative journey to redefine its role in global trade and logistics. Central to this evolution is the strategic expansion of Roll-on/Roll-off (Ro-Ro) shipping lines, specialized maritime routes designed for seamless movement of wheeled cargo like vehicles, trucks, and trailers.
As Egypt positions itself as a vital bridge between Europe and Africa, developing its Ro-Ro infrastructure is emerging as a game-changer. This aims to streamline trade flows, reduce logistics costs, and enhance the country's competitiveness on the international stage. To unlock the full potential of Ro-Ro lines, Egypt needs well-coordinated efforts and forward-thinking strategies.
Strengthening Egypt's Position as a Key Logistics Hub
Establishing Ro-Ro lines significantly benefits Egypt's economy. Economist Ali Metwally tells Arab Finance: 'Ro-Ro lines play a transformative role in reducing logistics costs in Egypt, particularly when compared to more traditional modes such as road freight or fragmented multimodal systems.'
'They have the ability to move large volumes of wheeled cargo directly between ports without the need for extensive handling infrastructure or time-consuming reloading. This drastically reduces both the turnaround time and overall cost of transportation,' Metwally adds.
The newly launched Ro-Ro line between Damietta Port and Trieste in Italy, which began its first voyage on November 28th, 2024, exemplifies the role Ro-Ro lines play in facilitating trade.
In February 2025, the Ministry of Transport said that the route enhances Egypt's role as a key logistics hub connecting Europe and Africa. It also promotes trade opportunities and supports the export of industrial and agricultural goods by improving access to European markets.
For her part, Sherine Ghaly, an associate professor of economics at the Institute of National Planning, tells Arab Finance: 'The Ro-Ro shipping line is anticipated to strengthen Egypt's position as a major logistical center linking Europe and Africa while lowering shipping prices and transit times. It will also expand trade prospects, boost agricultural and industrial exports, and make Egyptian commodities more accessible to European markets.'
Additionally, this "green corridor" not only cuts shipping time from six days to approximately two and a half days but also slashes port fees by a substantial 88%, as revealed during the launch ceremony.
"The development of Ro-Ro infrastructure also has notable implications for job creation across Egypt. Direct employment arises from port construction, maintenance, operations, and logistics services including customs, warehousing, and transport," Metwally explains.
Ghaly agrees, pointing out that 'Ro-Ro shipping is well-positioned to continue being a significant player in the logistics industry due to continuous technological advancements and a commitment to sustainability.'
'Ro-Ro shipping's continuous expansion shows how dynamic the logistics and transportation sectors are, always changing to satisfy the growing demands of international trade. The need for effective, reliable shipping methods increases with the growth of global trade,' she says.
Notably, industries like automotive manufacturing, construction materials, and agribusiness stand to gain the greatest advantage of Ro-Ro lines. These sectors handle large volumes or time-sensitive shipments, making them especially well-suited to benefit from Ro-Ro's speed and scalability. This leads to cost savings and greater supply chain reliability, according to Metwally.
Enhancing Egypt's Ro-Ro Potential
To fully capitalize on the benefits offered by expanding Ro-Ro lines, strategic and well-funded initiatives are paramount. Metwally highlights key areas for focus, emphasizing, "To further enhance the efficiency and capacity of Ro-Ro operations in Egypt, several infrastructure investments are crucial."
'The development and modernization of port facilities, such as expanded berths and digitized port management systems, are essential. This includes integrated dry ports like the 10th of Ramadan City project, which links seaports to industrial zones and urban markets,' Metwally points out.
'The improvement of road and rail connections to these ports is vital to ensure last-mile connectivity. Egypt's current over-reliance on road freight creates inefficiencies and congestion, whereas well-connected multimodal corridors could significantly reduce delays and costs,' Metwally highlights.
Meanwhile, Ghaly notes, "As the logistics industry grows, addressing challenges facing Ro-Ro shipping, including operational flexibility, customer service, cargo handling risks and technology adaptation, has become critical to sustaining a competitive advantage."
Ghaly explains, 'Ro-Ro businesses must contend with escalating competition and rising client demands by reducing transit times and maximizing resource consumption. This can be achieved by utilizing digital technology, including cloud-based systems and real-time data collection. Such efforts lower CO2 emissions, save money, and increase dependability.'
'In Egypt, a digital platform has been set up to process truck data from the Italian port system, such as shipper information, weight, and cargo type,' as per Ghaly.
'Additionally, using standardized international formats authorized by the UN Trade and Development (UNCTAD), Egyptian and Italian customs authorities have integrated their systems. This helps expedite the exchange of documents, including certification of food safety and health. Mobile applications have also been used to check electronic seals and identify any tampering,' she adds.
Finally, Metwally underscores the financial aspect, noting, "Financing these projects will require a blend of mechanisms." This suggests the need for a multi-pronged approach, potentially involving government investment, public-private partnerships (PPPs), and attracting foreign direct investment (FDIs).
The strategic embrace of Ro-Ro shipping lines marks a pivotal step in Egypt's ambition to solidify its standing as a leading global logistics hub. The tangible benefits already witnessed, such as the significant reduction in shipping times and costs on the Damietta-Trieste route, underscore the transformative potential of this mode of transport.
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