Governance of Transport Corridors in OIC Member States:
Challenges, Cases and Policy Lessons
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crossings.” (Rouis & Tabor, 2013). Trade logistics in the country are problematic (infrastructure and
services) and mainly dependent on trucking. The reform of the trucking sector is a “major area of
concern.” (Rouis & Tabor, 2013).
At an ASCWA conference on Transport and Logistics in the Arab region, this was corroborated, citing
the region’s “weak infrastructure and non-integrated systems and impediments related to logistics and
institutional and legal systems for trade and transport”. The conference was chaired by the Minister of
Transport of Egypt, Mr. Galal Mohamed Saeed. The need for further coordination and collaboration in
the region was stressed, mainly “the formation and expansion of ITSAS to include Maghreb countries,
its redesignation from ITSAM to ITSAS, the accession of member States to various agreements and the
memorandum of understanding, the creation of national committees for transport and trade
facilitation and road safety levels” (UNESCWA, 2017). According to a report from the Middle East
Institute, it is wise for Egypt to improve the physical connection with Libya and Algeria in order to
benefit from the construction of a Maghreb corridor, which is being established (Larbi, 2016). Sub-par
infrastructure is considered to be the “biggest challenge facing trade and logistics” in Egypt (Mena
Transition Fund, 2013). Road transport makes up for more than two-thirds of domestic logistics, while
international transport is almost exclusively maritime-based (Mena Transition Fund, 2013). Two
Egyptian ports (Port Said and Damietta) are major shipping posts in the region. As such, Egypt can be
considered a “major transshipment hub” with “state of the art port facilities” (Rouis & Tabor, 2013).
Corridor Objectives and Political Support.
At the UNESCWA conference in 2017, Egypt’s minister of Transport spoke of how important the
transport sector is for regional and international trade. In his view, the establishment of “interlinkages
between transport and logistics” are of the utmost importance. To show Egypt’s commitment to these
causes, the minister gave a presentation highlighting major developments in this sector in his country.
Among which: “the signing of agreements and memorandums of understanding, and introduced
projects, such as the national road project, a joint venture with the National Authority for Armed
Forces for the construction of 3,200 kilometres of new roads by 2018; a project on refurbishing the
railway network; and another project on establishing and connecting large logistics areas to all
transport networks, including maritime transport”. The focal point of investments however, was to be
on land transport. Complying with TIR Conventions is a priority, as is incorporating agreements into
National policy. Egypt regards transport and logistics as a major contributor to the country’s economy,
and as such Egypt’s commitment to the international agreements was stressed (UNESCWA, 2017).
The establishment of “regulatory authorities for the transport of persons and goods on international
roads and promulgating new laws in that regard” is a focus of the government, as well as the promotion
of the country as a hub of the international trade between East and West (UNESCWA, 2017).
There are plans to improve and modernize domestic infrastructure and services (road, maritime and
rail). Egypt is a member of the “Deauville Partnership”. The biggest aim of which is to “modernize trade
facilitation services by enhancing the performance of trade corridors, whether air, sea, or land; improving
markets for logistics services; increasing the efficiency of border management, including customs; and
facilitating the cross-border movement of service suppliers.” Within this partnership, Egypt’s priorities
are regional and global integration through trade facilitation, with the Middle East and North Africa as
the main areas of focus. This is also stressed in the government’s action plan. A few specific examples
are “the Intermodal Transport Corridor which is important for sustainable freight transport (involving
road, railway, maritime and inland waterway sectors) and linking the new 6th of October Value Added
Center with both the Alexandria-area seaports and Sokhna port; and the Mediterranean Corridor from
Libyan border to the Palestinian border and including major parts of the Cairo Outer Ring Road. The
government has also the Suez Canal Corridor, linking Suez to Port Said as a priority.” Also planned is
an upgrade of the Mediterranean Corridor by extending the expressway to the border with Libya and
Palestine (Mena Transition Fund, 2013). A major expansion of Egypt’s ports is under way, with an aim
of tripling capacity (Oxford Business Group, 2016). The expansion of the Suez Canal, and establishment
of a Suez Canal Economic Zone (“a logistical hub in its region, comprising four industrial zones and six
ports”) is also underway (EBRD, 2017).