Sea transportation

• The low efficiency and productivity of port cranes —the container moves per hour in the Port of Alexandria is 10-12/hour, compared to a global average of 20-25/hour.
• The poor quality of many of the services offered, including the transporting of bulk goods, services for vessels carrying vehicles; and inadequate shipping lines.
• Some ports charge storage fees (while the convoys of trucks are waiting) even though the ports lack in warehouses.
• The Inland Ports Authority imposes loading and discharging charges even though, the responsibility for the loading and discharging of cargo falls on the transport operators.
• Rising freight rates due to several reasons, including increasing costs of transportation and marine fuel.
• The rising cost of shipping lines; and the mandate that payments be made in US dollars even though the service is provided on Egyptian territory (not a free zone).

• Issue a comprehensive and uniform fee schedule for services provided at Egyptian ports to develop and modernize the maritime transport functions and services; prohibit the imposition of any extra fees or charges for services, under any name, except for taxes and fees prescribed by law or ministerial decrees.
• For maritime transport activities and services, give priority to companies that own ships flying the Egyptian flag in order to increase the trade volume, and stimulate exports.
• Take the necessary steps to remove abandoned cargo from the port area, and make available storage facilities outside ports to receive it.
• Develop the Port of Alexandria to address the widespread disorganization and lack of professionalism; upgrade the infrastructure, including roads, sewage, water, and electricity, and remove dilapidated buildings and waste, and constructing a new passenger terminal. 
• Give priority to the national commercial fleet-owned vessels for shipping Egyptian cargoes; this preference does not conflict with GATT rules for the maritime transport sector or free market mechanisms.
• Enhance the performance of stevedoring companies operating in ports, and make appropriate facilities to licensed private sector stevedoring companies to enhance their technical competence and improve their access modern equipment so that they can provide high quality and speedy service; this will ensure a high  quality of services offered by Egyptian ports, and maintain their reputation. 
• Develop the shipyards and Egyptian ship repair companies, whether privately- or publicly- owned companies, in order to attract ship owners to have their ships (both the transiting and docking) renovated and repaired in Egyptian port, this will increase revenue. Additionally, design policies aimed at maximizing shipyard capacity utilization in construction and repair work to develop the Egyptian merchant fleet.
• Investigate the reasons behind the high costs of supplying provisions to ships in Egyptian ports compared to neighboring countries; higher costs in Egyptian ports result in ships seeking resupply in other ports, which leads to a waste of resources and reduced revenues.
• Mandate that payment for services rendered on Egyptian territory be made in Egyptian pounds.  

In July 2019, the Cabinet approved the proposal of the Ministry of Transportation to amend a number of provisions of two decrees issued by the Minister of Transportation and to abolish a third.

• The first, Decree No. 488 of 2015, regulates the service fee charged to ships in Egyptian seaports, other user charges associated with utilizing floating and fixed facilities, e.g., structures, gear, and equipment, which belong to the Egyptian Ports Authorities and the Egyptian Authority for Maritime Safety, and fees charged for electronic services provided Egyptian Ports to their clients.
• The second, Decree No. 800 of 2016, regulates the conducting of sea transport activities and operations, and the user-related charges and fees. 
• The third, Decree, No. 468 of 2018, which was abolished, sets out the incentives offered to customers in Egyptian seaports.

Based on the Cabinet approval, in July 2019 the Minister of Transportation issued Decree No. 416 of 2019, which includes the following incentives:

• Reducing insurance fees from LE 10,000 to LE 5,000, and the licensing fees from LE 3,000 to LE 1,000, in addition to reducing the fees associated with vessel resupply services by 50%.
• A 10% reduction in the lighthouse fees in the case that a ship passing through Suez Canal enters one Egyptian port, in the case the ship enters two or more ports, the fees are reduced by 20%.
• Increasing the duration of the license granted for loading and unloading activities (currently 5 years) to 10- 15 years, with the possibility of renewal for other similar periods; increasing the duration of the license granted for storage and warehousing activities (currently 5 years) to 10 years, renewable for similar periods; reducing the amount of insurance that the licensee is obliged to pay from LE 10,000 to LE 5,000 (to be paid either in cash or under a bank guarantee letter); and reducing the license fees for marine works / marine supplies activities from LE 3,000 to LE 1,000, for each activity separately.
• Reducing the fees for obtaining the ship supply services by 50%; reducing the annual fees paid by companies operating in the area of ship waste procurement to LE 1,000 (currently it is LE 10,000), eliminating the requirement that the Egyptian partner's share in the capital of joint venture shipping agencies should not be less than 51%.