investors' substantial $29 million wager on Egypt's refrigerated warehousing facilities
In the heart of the Elsewedy Industrial Park, a significant development is underway. The company Gebhardt Fördertechnik GmbH has announced plans to build a modern cold storage facility in Egypt's New Administrative Capital area, spanning a warehouse area of 174,311 square feet.
This ambitious project, valued at approximately $29 million (1.4 billion Egyptian pounds), is seen as a strategic move to address one of Africa's biggest economic challenges: inadequate food storage infrastructure. Mohammad Shihab, general manager of DP World Egypt, described the project as a significant step in strengthening Egypt's cold chain capabilities.
The growth of this facility is driven by the rapid expansion of the cold chain market in Northern Africa and the Middle East (MENA). The market is projected to reach $41.1 billion by the end of 2030, with a compound annual growth rate of 8.8%. This growth is due to five core drivers: rising demand for perishables, e-commerce growth, stricter regulations, investment in cold storage and smart tech, and the strategic location of the MENA region as a crucial transit point for temperature-sensitive goods.
The success of the facility will depend on smooth operations, power, maintenance, transportation linkages, and a skilled workforce. Investments in cold storage and smart technology, such as smart warehouses, real-time monitoring systems, and automation, are being made to improve efficiency and reduce spoilage.
The facility will have eight temperature-controlled chambers for refrigerated and frozen goods, with a capacity for 25,000 pallet positions. This could provide predictable access to cold storage for companies across the agricultural sector, potentially making a significant difference between profit and ruin.
Moreover, governments in the MENA region are enforcing stricter food safety and pharmaceutical storage regulations, encouraging the adoption of advanced cold chain solutions. The proper management of the facility could set a standard for cold storage on the continent.
As populations continue to grow and new cold storage enters the market, it has become a race to see who will come out on top in the region. The success of the facility will also depend on governance, regulatory support, and the ability to integrate into regional and global trade networks.
The growth of e-commerce and online grocery shopping is increasing the need for efficient last-mile cold chain logistics in urban centers across the region. Severe post-harvest losses occur due to the lack of adequate cold chain solutions; nearly 40% of perishable goods and 20% of other food products are lost each year along the supply chain.
DP World is also planning to build a state-of-the-art cold storage facility in Egypt's Al Oula region. The success of these facilities could revolutionise the cold chain industry in Egypt and the MENA region, contributing significantly to the region's economic growth and food security.
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