Investment of $29 Million in Egypt's Refrigerated Warehousing by DP World
In a significant development for Egypt and the Middle East and North Africa (MENA) region, DP World has announced plans for a state-of-the-art cold storage facility in Egypt's Al Oula region. The investment for the construction of this facility is approximately $29 million (1.4 billion Egyptian pounds).
The facility, set to be built within the Elsewedy Industrial Park, will span a 174,311 square feet warehouse. It will house eight temperature-controlled chambers for refrigerated and frozen goods, fruits, vegetables, and dairy, with a capacity for 25,000 pallet positions.
The MENA region's strategic location as a crucial transit point for temperature-sensitive goods contributes to its growth in the cold chain market. The cold chain market in North Africa and the Middle East is projected to reach $41.1 billion by the end of 2030, with a compound annual growth rate of 8.8%.
The increasing demand for perishable goods such as fruits, vegetables, dairy, seafood, and temperature-sensitive pharmaceutical products is driving the growth of the cold chain market. For companies across the agricultural sector, predictable access to cold storage can mean the difference between profit and ruin.
The lack of adequate cold chain solutions contributes to severe post-harvest losses; nearly 40% of perishable goods and 20% of other food products are lost each year somewhere along the supply chain. The successful operation of cold storage facilities, like the one in Egypt, will depend on factors such as smooth operations, power, maintenance, transportation linkages, a skilled workforce, governance, regulatory support, and integration into regional and global trade networks.
Governments across the MENA region are enforcing stricter food safety and pharmaceutical storage regulations, encouraging the adoption of advanced cold chain solutions. The facility in Egypt will be no exception, employing smart warehouses, real-time monitoring systems, and automation to improve efficiency and reduce spoilage in cold storage facilities.
The construction of state-of-the-art cold storage facilities, like DP World's in Egypt, is aimed at improving Egypt's cold chain capabilities and creating new opportunities for trade and industry. Mohamed Shoukry, the general manager of DP World Egypt, described the project as "a major step in strengthening Egypt's cold chain capabilities and creating new opportunities for trade and industry."
Africa's food storage infrastructure currently covers less than 30% of annual production. The facility in Egypt will contribute to bridging this gap, helping Egypt plug one of the continent's biggest economic leaks.
The growth of e-commerce and online grocery shopping has increased the need for efficient last-mile cold chain logistics in urban centers. The facility in Egypt will play a crucial role in meeting this demand, ensuring the timely and safe delivery of perishable goods in urban areas.
This development underscores Egypt's ambition to strengthen its position as a regional hub for trade and industry, and DP World's commitment to supporting this vision.
