Cairo: Investment and Foreign Trade Minister Mohamed Farid participated in a conference and panel discussions with representatives of a number of companies operating in the logistics services sector. The event, organized by Entelaq, focused on challenges facing the ecosystem of services supporting foreign trade and ways to develop the capabilities of companies operating in transportation, shipping, storage, unloading, insurance and other services related to the movement of trade.
According to State Information Service Egypt, the Minister stressed that developing the capabilities of the logistics services sector is a key pillar for enhancing the competitiveness of Egyptian foreign trade, noting that the efficiency of transporting, storing and distributing products and production inputs has a direct impact on production costs and the ability of Egyptian products to compete and access foreign markets.
He explained that the ministry is working to support companies operating across the various segments of the logistics ecosystem and identify the challenges hindering their expansion and efficiency, contributing to the development of more efficient and resilient domestic supply chains capable of meeting the needs of production and export sectors. He highlighted the importance of integrating transportation, shipping, unloading, storage, warehousing, and insurance services with the distribution of products to domestic markets and export outlets.
He stressed that improving the efficiency of each stage in this chain helps reduce time and costs and enhance the competitiveness of Egyptian products. He said the ministry is coordinating continuously with the Ministry of Finance, the Customs Authority and relevant agencies to expedite the release of goods, noting that the average customs clearance time has fallen from about 16 days in June 2024 to around 5.8 days, with work underway to reach a target of two working days.
He explained that this is being achieved through an integrated system encompassing pre-clearance, electronic documents, electronic bills of lading and certificates of origin, risk management, and enhanced digital connectivity among relevant authorities. The Minister affirmed that digital transformation is one of the key tools for improving the efficiency of the logistics services sector, noting that efforts are underway to develop a regulatory framework for testing new technological solutions in digital trade documentation, goods tracking, supply chain management and logistics technology, in cooperation with relevant government entities.
He noted that technology offers opportunities to improve the utilization of available logistics capacity by connecting service providers and matching shipments with available capacity, reducing empty trips, increasing the utilization rates of transport fleets and warehouses, and providing small companies with greater access to customers and financing. Mohamed Farid pointed out that the ministry's vision for the logistics sector extends beyond its role in supporting merchandise exports to treating logistics services themselves as exportable services.
He explained that transit, transshipment, shipping, storage and re-export services can generate additional economic value by leveraging Egypt's strategic location and infrastructure. The Minister stressed the ministry's keenness to ensure that discussions with private-sector representatives produce practical outcomes by identifying the bottlenecks and challenges with the greatest impact on trade flows, operating costs and exports, and distinguishing between issues requiring infrastructure development, those requiring regulatory and procedural reforms, and those that can be addressed through technology, data and more efficient use of existing capacity.
He affirmed that work would continue in partnership with the private sector to translate challenges and proposals into practical measures that contribute to reducing the cost and time involved in trade flows, supporting the expansion of production and export sectors, and enhancing Egypt's ability to access regional and international markets. Mohamed Farid thanked the Entelaq team for its role in providing research and diagnostic reports on a number of sectors, which offer investors clearer insights and support the decision-making process.