Egypt, Sky Ports ink MoU for dry ports, logistics zone at Borg El Arab
The dry port, an inland intermodal terminal connected to seaports by road or rail, is located over an area of 133 acres on Egypt’s Mediterranean coast.
It aims to serve the industrial zone in the area by facilitating trade, exports, imports, and reducing congestion of goods and containers at seaports. No other information on the project has been disclosed.
Sky Ports is an Egyptian marine terminal operator and logistics provider for Egypt’s heavy industries, such as cement, oil & gas, fertilizer, and steel.
The firm has already presented a comprehensive plan to enhance the efficiency of the dry port.
Sky Ports, a subsidiary of Sky Investments, operates in dry bulk, break-bulk, and large bonded storage areas located at key ports such as Ain Sokhna and Adabiya ports.
The project will improve the logistical services provided, as well as reduce transportation costs, establishing Egypt as a key hub for regional transport, logistics, and transit trade.
It will also improve the connection of manufacturing sites with export ports and reducing customs clearance, inspection, and related procedures time.
This signing comes as the US-Israel war on Iran and other regional conflicts continue to cause major spillover effects such as higher inflation, foreign currency outflows, currency pressure, and disrupted trade flows.
Before the conflict, Egypt’s trade deficit widened by 49 percent year-on-year to $10.3 billion during January and February 2026, up from $6.93 billion during the same period in 2025. This is despite the country’s plan to reduce its import bill and increase exports by 15–20 percent annually through 2030.
A continued military escalation in the Middle East could reduce the region’s economic output, with losses of $120 to $194 billion. North Africa is expected to be less affected, however, with growth ranging from 0.0 to 0.4 percent, or gains of $90 to $3.2 billion.
Moreover, the dry port is also part of a broader plan to build 33 dry ports and logistics zones, as well as seven integrated logistics corridors to connect industrial, agricultural, and mining production areas with seaports and connect Red Sea Ports with other Mediterranean ports. It will also serve urban communities through a railway network or a main road network.
Over the past ten years, Egypt has constructed 22 dry ports and logistic zones in various parts of the country, including in the 10th of Ramadan City.
International lenders such as the European Bank for Reconstruction and Development (EBRD) have supported this strategy to modernize the transport sector, approving funding for Egypt’s first inland dry port under a public-private partnership model.
The EBRD has financed 206 projects in Egypt worth more than 13.5 billion euros since 2012, across projects related to renewable energy, transport, financial services, and infrastructure, and invested 1.3 billion euros across 26 projects in 2025.
Sky Ports has a 12 percent market share and handles a volume of over 6.5 million tons annually. It is currently operating the second phase of its bulk cement export terminal at East Port Said port, worth over $50 million in investments.