Egypt launches 273k sqm Dekheila cargo hub amid transit surge

The Alexandria Port Authority (APA), Hassan Allam Utilities (HAU), and Al Tarek Capital have signed a Memorandum of Understanding to develop a 273,000 square meter storage, re-export, and light-manufacturing hub at Dekheila Port's western hinterland. The partnership responds to significant growth in transit cargo, with container traffic through Alexandria rising 14% to 2.59 million TEUs in FY 2025/26, while transit containers surged 74% to 553,400 TEUs. This growth has been driven largely by Red Sea disruptions pushing shippers toward Mediterranean gateways.

The hub's success depends on securing critical regulatory approvals, including incorporation into the port's customs zone and freezone status, before any construction can begin. Hassan Allam Utilities must finalize terms with APA and Al Tarek, and the parties have not yet disclosed financing arrangements, investment figures, storage capacity, or operating responsibilities. The project represents a strategic response to shifting trade patterns caused by regional security concerns, positioning Egypt's ports to capture additional value from transiting cargo through processing and re-export activities.

For supply chain professionals, this development signals expanded processing capacity in a critical Mediterranean gateway, but the timeline remains uncertain pending regulatory approvals. The hub could become a valuable alternative for shippers seeking to reposition cargo or defer final manufacturing due to supply chain volatility, particularly as Red Sea risks persist.