Seaborne Trade
In 2008 Egypt's foreign trade has reached US $79. 1 billion as mentioned in official statistics processed and handled by Egypt's International Trade Point. Seaborne volumes handled through national ports amounted to 81.1 million tons. Nearly 80-90 per cent of Egypt's foreign trade is seaborne. Exports has reached $26.2 billion in value, representing 33.1 per cent from overall foreign trade figure, which is in itself a 61.9 per cent growth compared to 2007. Ports of Egypt handled 28.9 million tons at a percentage of 35.6 from overall foreign trade. Grains, cement, aluminum, fertilizers, salt and rocks were atop of the commodities shipped by sea.
 
Egyptian imports in 2008 were $52.9 billion, at 66.9 per cent from overall Egyptian foreign trade volumes – 95.5 per cent increase on 2007. 52.2 million tons were handled through national ports. Main commodities included grain, fuels, mineral oils, wood, and asphaltic materials. By the close of 2008 transport sector has achieved 8.4 per cent in real growth rate.

Egypt's fleet has reached 170 vessels as registered by Egyptian Authority for Shipping Safety end of 2008.135 operating vessels with 1387144 dwt ( 90.7 per cent ) and 35 non-operating vessels with 142297 dwt (9.3 per cent).

Now to initiate major port projects and shipbuilding yards is increasingly becoming a timely choice. A ship is built usually in a couple of years and - this is the utmost duration the crisis could persist as anticipated by experts- after which time things would hopefully be getting better and the project(s) is ready to satisfy customer needs.

Ownership
57.1 per cent of the fleet is cargo ships and 42.9 per cent are service vessels.The private investment sector is the biggest shipowner having 103 vessels which represent 60,6 per cent of overall number with 21611 dwt, 14,1 per cent from overall. Free Zone Investment (FZI) possesses 36 vessels, 21,2 per cent , Public Enterprise comes next with 23 vessels, 13.5 per cent while Joint Investment and Domestic Investment have 6 and 2 vessels at a percentage of 3,5 and 1,2 respectively from overall national fleet. (*Based on Egyptian maritime Data Bank (EMDB) Annual Statistical Guidebook 2008 )

DWT
The fleet registered 1.5 million dwt in 2008.The majority of vessels are in service either in number or dwt terms. Less than 100 dwt category includes 14520 vessels of which 14173 units (97.6 per cent from the category) are operating. Over 100 dwt category comprises 2008 units, with 1992 operating ones forming 99.2 per cent from the category units.  In Over 300 dwt category there are 213 vessels, 210 are operating with a percentage of 98,6 from category. Finally 72 vessels are available in Over 500 dwt category with 70 units operating at 97.2 percent from this category. 3323 marine units are available but strangely enough with unrecorded dwt.

Experts say: "Egyptian shipowners were minimally hit by the impact of the global financial crisis. Reason: their share in transporting Egypt's foreign trade is usually as meager as 5-7 per cent no more".

Age Classification
Vessels are largely old. Only 11ships were built in last five years with a total dwt of 97.5 thousands whereas the majority of vessels, 131 totaling 7454 thousands dwt that amounts to 48.7 per cent of overall fleet dwt, exceed twenty years- This gives us a clue to how the fleet is proceeding internationally: fleet units were unable to call on many ports, showed lowered compliance to international agreements, ISM and PSC requirements and sustained higher operation and maintenance costs. The result is higher freight that ends up with losing fleet competitive advantage. Remaining 28 vessels of the fleet are aging between 5-20 years with a dwt of 6866 thousands that makes up 44.9 per cent from overall fleet dwt.

Type of Vessels
Bulk Carriers: The premier as far as dwt is concerned, registering 70,102 thousand tons for 12 carriers, 45.8 per cent from overall dwt.This reflects Egypt's foreign trade structure where dry bulk commodities represent 37.2 per cent of aggregate domestic throughput. Nine Panamax carriers are available with a dwt of 6,151 thousands tons, 86.3 per cent from this category's dwt.

Three handsize Bulkers are also available. Their dwt is 87.7 thousand, 12.3 per cent from bulk category dwt.There are no Capesize or Handymax bulk carriers. Four bulk carriers are 10-15 years old, totaling 2,717 thousand dwt at 38.7 per cent of  bulk category dwt. Further, four carriers are over 20 years with a dwt of 150 thousand tons, 21.4 per cent from same category. All carriers are operating except one with a dwt 22 thousand tons.

General cargo: Comes second in dwt even though number of vessels is higher than bulk carriers. 51 vessels are available, 30 per cent from fleet units with a total dwt of 347, 1 thousand tons representing 22.7 per cent of aggregate fleet dwt. Two vessels are classified as general cargo/roro vessels, one with a dwt of 247.1 thousand tons, still a leading 17.8 per cent among operating fleet units. Nearly 43 vessels, 259.2 thousand dwt representing 74.7 per cent from aggregate category figure, are over 20 years. Only eight units with a dwt of 87.9 thousand tons, 25.3 per cent from overall category dwt are under 20 years.

Being quickly responsive to the financial crisis, The Shipping Industry may require twice the crisis time to rebound/

Oil tankers.:17 oil tankers are available with a total dwt of 280.1 thousand tons, 18.3 per cent from overall national fleet dwt. All are operating. Three Panamax oil tankers are over 50 000 dwt each, making a total dwt of 183.4 thousand tons, 65.5 per cent from total oil tankers category dwt. Only one Aframax oil tanker is 81.3 thousand dwt representing 29 per cent from this category's overall dwt. The fleet does not possess Suezmax, VLCC or ULCC oil tankers.13 costal oil tankers are available. These are under 50 thousand dwt each, totaling 15.4 thousand dwt, which is 5.5 per cent from aggregate category dwt. 14 oil tankers with a total dwt of 220.7 tons are over 20 years.

Service Vessels: Out of 73 vessels hoisting Egyptian flag under this category, 68 are operating with a dwt of 102.7 thousand tons while five remaining non operating units are 5.2 thousand dwt.This category also includes service units classified under marine units, hired service units working off Egyptian coasts and Egyptian-owned service units that do not hoist Egyptian flag.

Other types of Vessels: A total dwt of 95.2 thousand tons is registered for other types of vessels in the Egyptian fleet. They are nearly 6.2 per cent from aggregate fleet dwt that is distributed among different types:
·    0.9 per cent for container/roro vessels, over 20 years-old,
·    0.9 per cent for 2 roro/ferry,5-10 yeas and over 20 years respectively,
·    0.2 per cent for a passenger vessel which is over 20 years,
·    3 per cent for 2 containerships ,5-10 and 15-20 years respectively,
·    0.8 per cent for 4 passenger vessels ranging between 15-20 years and over 20 years,
·    0.3 per cent for 2 passenger/roro cargo vessels which are up to 5 years and over 20 years respectively,
·    0.1 per cent for 2 passenger ferries over 20 years and
·    0.1 per cent for 2 fuel tankers under 5 years.

Marine Units. Ships under this category are widely diversified in terms of type, number and use. 20136 units were registered in ports of Egypt during 2008. (13 units less than those registered in the previous year 2007, 0.1 per cent down). Marine units are generally utilized in every port for very specific purposes and only a few of them are outside service. 19.8 thousand units are in operation forming a 98.1 percent from aggregate fleet marine units.

It is strongly recommended to purchase new ships up to 3rd quarter of 2009 and to sell out if one wishes, in 2012-2015. Avoid long-term leasing and/or hiring. Do not contract to carry welfare commodities.

Port of Registry
In Alexandria there are 9684 units, 48, 1 per cent from overall registered marine units, of which operating units alone reached 96.8 per cent. Suez Port follows with 3118 units at 15. 5 per cent then Port-Said with 2498 units at a percentage of 12.4 from aggregate registered marine units.

Comment by the Author
Global trade is tightly linked to maritime shipping, and foreign trade fortunes are inevitably dependent on the growth rates attained through deploying raw materials, half-fabricated materials and finished goods together with production lines - significant components of the foreign trade cycle.

Moreover, since tonnage capacity of vessels that are entering international service in the period 2005-2010 is 55 per cent form that recorded by end of 2004, any new number of ships will inevitably devour whatever increase in cargo volumes.

During economic crises growth rates are slumping, several countries resort to protectionist measures to safeguard domestic industries. Consequently, foreign trade slows down and demand on transport falls. Whereas on the supply side, some vessels are expected to cease operating and further shipbuilding schemes could be blocked to avert leaving capital standing idle.

Private sector should receive more encouragement to actively participate in upgrading the mercantile fleet. No doubt we lack a synergic strategy that can set the stage for a mature management development vision neither do we have the sufficient shipping management expertise.

Therefore, maritime transport industry falls short of benefiting from Egypt's unique location and the global variables around us. When the private sector was allowed to work in stevedoring, handling rates rose remarkably and efficiently enough to revive the old tradition "survival for the fittest".

Logistic services should also get due attention and be soon applied in an expandable manner.

Ashraf Ghazy
Damietta,   Egypt.

This is an original article by contributor Ashraf Ghazy.

The new edition of Port Technology International, out in March, will feature Mr Ghazy's article "The Suez Canal: the invaluable shipping shortcut."

His previous article "River transport and reshaping Africa" can be viewed in PTI issue 43, page 26, which can be accessed here.