21 Jul 2021
Egypt is a growing sourcing and procurement market for textiles. Egyptian cotton, garments like trousers, and carpets are sought after by some of the biggest Fashion and Lifestyle brands. In addition to its high-quality textile and clothing products, what makes Egypt such an attractive sourcing destination is its strategic location – close to both Europe and North America.
 
More than 10% of world trade passes through the Suez Canal, making Egypt an important Transhipment Hub for supply chains around the world. As a result, demand for logistics and warehousing capabilities in the country has witnessed steady growth over the past few years.
 
Since 2017, the Egyptian Government has also been promoting exports with a special focus on investments in infrastructure, attracting Foreign Direct Investments (FDI), and the expansion of the Suez Canal.

Logistics

Fashion and Lifestyle companies are always in a race against time. Their goods need to be in stores on time, every time. For that reason, they require the correct quantity of goods to be loaded at the source, in good condition, with accurate labelling and documentation. What’s more, businesses selling products with low margins must optimise logistics costs.

Goods can get damaged in transit if the rules and regulations of loading are not strictly followed

Errors result in delays and unforeseen supply chain costs. For instance, if a fast-selling product misses a vessel, businesses may have to fly the product to the destination rather than use an ocean solution. 

Goods can get damaged in transit if the rules and regulations of loading are not strictly followed. Further, if an incorrect number of cartons is loaded on the vessel, or the customs documentation is inaccurate, the movement of goods gets interrupted at the destination.

Adding value to Fashion and Lifestyle supply chains

For some years now, Maersk has been simplifying and integrating logistics for customers in Egypt with Supply Chain Management (SCM) services. Growing exports, however, have highlighted a growing need for services such as vendor and purchase order (PO) management and consolidation to ensure smooth processes from manufacturing in Egypt to the final destination.

To address the challenges customers are facing, Maersk has invested in a state-of-the-art Container Freight Station (CFS) in the region, covering an area of 5,550 sq. m.

Supply Chain Management (SCM) solution

One of the key pillars of the SCM solution, this carrier-neutral CFS has expanded the existing warehousing capabilities for Fashion and Lifestyle customers in Egypt and has added value to their supply chains in many ways.
  • Proximity: Centrally located between the capital city of Cairo and the Port Said terminal, the CFS is just 90 minutes away from both the manufacturing hub and the port of origin.
  • Expertise: More than half of the top global Lifestyle companies turn to Maersk’s proven supply chain solutions to experience real results and fuel continuous growth.
  • High-Quality Vendor and PO Management: We take on the responsibility of minimising errors and delays by supervising and monitoring everything, from labelling and container utilisation, to the quantity of cargo loaded on the vessel.
  • Scale: The Fashion and Lifestyle customers now have more space to utilise and seven loading docks to move cargo through.
  • Safety: The CFS is in Ismailia, a public Free Zone that qualifies as a high safety area. The facility takes all the required measures to maintain this security.

Cost benefits of reliability and consolidation

Integrating SCM and CFS services with other Maersk solutions can take operational efficiencies to a whole new level Fashion and Lifestyle supply chains need to run like well-oiled machines. They cannot afford the cost of uncertainty that comes along with damages, discrepancies and delays. the customers in Egypt rely on us to address all their challenges. They use the CFS not just to keep supply chain inefficiencies in check, but also to enable savings through better container utilisation.

This can result in substantial savings as the cost per container or customs clearance and trucking is not that different for 20- and 40-foot containers. Additionally, multiple shippers can share one container, paying only for the space they occupy. Integrating SCM services, including the CFS, with other Maersk solutions such as Ocean, Trucking, Rail, and Customs Services can take operational efficiencies to a whole new level.

Authority feedback

"We visited the Platform at the end of October, and I have been impressed by the high standard in terms of construction and strategic location. Safety and security rules were respected during our visit, which confirmed our choice of Maersk for our CFS."

"We have started shipping from this CFS and are applying the processes agreed upon, which will undoubtedly increase the efficiency and attractiveness of the services we provide to our clients," said Ladilia Benbahlouli, Country Logistic Leader, Egypt, Decathlon.

Facility overview

Features

  • 3,900 sq. m storage space
  • 7 dock doors
  • C-TPAT compliant
  • Full security camera coverage
  • Security guards

Core services

  • Consolidation
  • Storage

Value added services

  • Quality control and inspection
  • Ticketing / Labeling
  • Carton bar code labeling
  • Sampling
  • Barcode scanning
  • Repair of pallets and packaging