Egypt's Cabinet is weighing a $400 million container terminal at Ain Sokhna and a $2 billion China-backed logistics city as part of a broader push to anchor Chinese investment in the country's maritime and industrial base. The proposed Sokhna terminal would be built in partnership with Jiangsu Port Group Co Ltd and Shanghai Huanshi Logistics Co Ltd, with a designed capacity of 2 million TEU sharpening the port's positioning as a Red Sea container hub.
A parallel proposal centres on a 3 million square metre logistics and trading city modelled on China's Yiwu, backed by an estimated $2bn investment and designed to integrate exhibition, distribution and service infrastructure into a single export-oriented platform with projected employment of about 150,000. Industrial capacity is also being lined up: Hurricane Group is advancing plans for a 100,000 square metre manufacturing zone combining chemicals, fast-moving consumer goods and household products, with about 70% of output targeted for export.
The package extends to a proposed bonded warehouse for re-exporting used machinery into African markets, reinforcing a wider supply chain strategy linking Egypt to regional trade flows. The Red Sea's strategic location and proximity to the Suez Canal make Egypt an attractive port and logistics hub for Chinese investors.
More than 160 Chinese companies are already active across sectors in Egypt, with additional capital expected to follow if the projects move forward. Jiangsu Port Group is a state-owned enterprise responsible for port development and operations in Jiangsu province; Shanghai Huanshi Logistics operates in freight forwarding and supply chain management, covering cargo handling, warehousing and multimodal services.
Key Takeaways:
1. Egypt is planning a $400m, 2 million TEU container terminal at Ain Sokhna with Jiangsu Port Group and Shanghai Huanshi Logistics.
2. A 3 million sq m, $2bn Yiwu-modelled logistics city is projected to create about 150,000 jobs.
3. Hurricane Group is advancing a 100,000 sq m manufacturing zone with about 70% of output targeted for export.
4. The package includes a bonded warehouse for re-exporting used machinery to African markets.
5. More than 160 Chinese companies already operate in Egypt; new projects could draw additional capital.
