Naqla Annual
Business Report
2024
Driving Progress, Delivering Excellence

Naqla Numbers
2024 Hiccups
Diesel price surge
In 2024, diesel price hikes in Egypt had a significant impact on the logistics industry, given the heavy reliance of trucking operations on diesel fuel. The 17.4% increase in October, along with previous hikes in March and July, escalated operational costs for trucking and logistics companies. This created challenges for fleet operators, including increased transportation expenses, potential disruptions in supply chain efficiency, and tighter profit margins. With diesel being a critical cost driver in logistics, these price adjustments pushed companies to explore cost-cutting measures such as route optimization, transitioning to alternative fuels, and leveraging technology for better fleet management. For platforms like Naqla, this underscored the importance of tech-driven solutions to maintain efficiency and affordability, helping mitigate the impact of fuel price volatility on both businesses and drivers.
Currency Devaluation
During 2024, Egypt experienced significant devaluation of the Egyptian pound, which had a profound impact on the logistics sector. The currency’s depreciation, dropping from approximately EGP 30 to EGP 50 against the US dollar, led to increased costs for imported goods and services essential to logistics operations. Egyptian Initiative for Personal Rights.
Key Impacts on the Logistics Sector:
- Increased Operational Costs: The devaluation raised expenses for fuel, vehicle maintenance, and imported spare parts, directly affecting transportation costs. This, coupled with fuel price hikes—such as the 17.4% increase in diesel prices in October 2024—further strained logistics companies. AP News.
- Supply Chain Disruptions: Fluctuations in the exchange rate led to delays in payments for imported commodities, causing backlogs at ports and affecting the timely delivery of goods. Reuters.
- Inflationary Pressures: The increased costs in logistics contributed to higher prices for goods and services, exacerbating inflation and affecting consumer purchasing power. Inflation peaked at 38.0% in September 2023 and was expected to decline to 20.4% in 2024/25. Reuters.
- Financial Strain on Businesses: Companies faced challenges in managing cash flow and maintaining profitability due to the combined effects of currency devaluation and rising operational costs. The devaluation also led to a downgrade in Egypt’s credit rating, reflecting increased risks to external financing and a rise in government debt. Wikipedia.
Adaptation Strategies:
- Cost Management: Logistics companies sought to optimize routes and reduce fuel consumption to mitigate rising expenses.
- Local Sourcing: There was a shift towards sourcing materials and services locally to minimize reliance on imports and exposure to currency fluctuations.
- Technological Integration: Adoption of advanced logistics technologies improved efficiency and reduced operational costs.
Despite these challenges, economic reforms and investments, such as the $24 billion from the UAE, aimed to stabilize the economy and support sectors like logistics. The economy was projected to grow by 4.0% in the year ending June 2025, driven by reforms under an $8 billion IMF package. Reuters.
Gaza War
The 2024 Gaza conflict significantly impacted Egypt’s logistics and trucking sectors through several key channels:
Suez Canal Revenue Decline: The conflict led to a substantial reduction in Suez Canal revenues, with reports indicating a loss of over 50-60%, amounting to more than $6 billion over 7-8 months. Africa News.
This decline was primarily due to shipping firms diverting traffic around the Red Sea in response to regional hostilities, directly affecting Egypt’s foreign currency earnings.
Increased Shipping Costs: Disruptions in the Suez Canal traffic flow resulted in higher shipping costs. Al Jazeera.
The need for alternative, longer routes increased fuel consumption and transit times, leading to elevated operational expenses for logistics companies.
Economic Slowdown: The combined effects of reduced canal revenues and increased shipping costs contributed to a slowdown in Egypt’s economy. The United Nations Development Programme estimated that the conflict’s impact on canal revenues and tourism could cause Egypt’s foreign currency reserves to decline by between $3.7 billion and $13.7 billion over the next year, depending on the conflict’s intensity. Global Trade Review (GTR).
This economic strain affected the logistics sector by reducing trade volumes and increasing financial pressures on businesses.
Humanitarian Aid Efforts: In response to the humanitarian crisis in Gaza, Egypt facilitated the entry of aid through the Rafah border crossing. The World Food Programme reported that trucks began crossing into Gaza after the ceasefire, with aid entering from Egypt. World Food Programme.
This operation required significant coordination and resources from Egypt’s logistics and trucking sectors to manage the increased demand for transportation and distribution of aid supplies.
The Economy
Building bridges for economic growth and opportunity.
Our Commitment to the Economy
At Naqla, we are committed to revolutionizing the trucking industry in Egypt by leveraging technology to drive economic growth. As a platform connecting businesses with reliable trucking solutions, we empower drivers with steady work opportunities and value-added benefits, while streamlining operations for our customers. By enhancing efficiency and fostering innovation in logistics, we contribute to the significant role trucking plays in Egypt’s GDP, ensuring our efforts align with the nation’s economic development and sustainability goals.
Contribution of trucking in the GDP
The trucking industry is a crucial component of Egypt’s transportation and logistics sector, which plays a significant role in driving economic activity. The Egyptian government is working to boost the industrial sector, aiming for manufacturing to account for 20% of GDP by 2030. As a backbone of the logistics network, trucking is vital for facilitating trade and supporting economic growth. This is where Naqla comes in to enhance this efficiency by bridging the gap between truck owners and cargo companies, contributing to the sector’s overall development.
Egypt’s GDP growth rate trends over upcoming years
Industry worth in Egypt
The logistics industry in Egypt has experienced significant growth in recent years. In 2023, the market was valued at approximately USD 10.1 billion and is projected to reach USD 15.4 billion by 2032, reflecting a compound annual growth rate (CAGR) of 4.70% during the forecast period. This expansion underscores the sector’s vital role in facilitating trade and supporting economic activities across the country. IMARC.
Egypt Freight & Logistics Market CAGR % by Function, 2023 – 2029
Insights on top Industries
Driving success across key sectors: How our expertise in logistics drives efficiency and growth across industries.
Agriculture Sector
Logistical Insights:
- Seasonality: Agricultural products have seasonal peaks requiring a high degree of logistical flexibility to handle fluctuations in demand. Harvest seasons, such as wheat (April-May) and citrus (October-January), drive trucking demand.
- Cold Chain Logistics: Perishable goods, such as fruits and vegetables, require temperature-controlled transportation to preserve quality. Egypt’s cold chain infrastructure is growing but still requires modernization to reduce post-harvest losses.
- Export-Driven Demand: Egypt is a top exporter of crops like oranges, potatoes, and onions. Trucks play a vital role in transporting goods from farms to ports like Alexandria and Damietta for international shipping.
- Rural Connectivity Challenges: Remote agricultural areas often have poor road infrastructure, making last-mile logistics more challenging.
How Naqla Excels:
- Agility for Seasonal Demand: Naqla’s platform dynamically scales trucking operations during peak harvest times, ensuring availability of trucks when demand surges.
- Technology Integration: Advanced tracking and load management optimize routes, reducing transit times and spoilage risks for perishable goods.
- Enhanced Rural Reach: Naqla connects remote farming communities with urban markets and ports, solving challenges through a robust driver network.
Steel & Construction Sector
Logistical Insights:
- Heavy-Duty Requirements: Steel and construction materials such as cement, sand, and gravel require specialized trucks capable of handling heavy loads. Flatbeds, tippers, and lowbed trailers are commonly used for such transportation.
- Urban vs. Rural Projects: PUrban projects demand precise, just-in-time deliveries due to limited storage space at construction sites. Rural or mega projects (e.g., New Administrative Capital, Toshka) require large-scale, continuous logistics operations.
- Regional Connectivity: The construction boom in Egypt relies heavily on trucking to deliver materials from factories in industrial zones to project sites nationwide. Export of construction materials like steel and cement to neighboring markets (e.g., Libya, Sudan) adds cross-border logistics complexity.
- Cost Sensitivity: Fuel price fluctuations and road tolls significantly affect the cost structure for transporting construction materials.
How Naqla Excels:
- Specialized Fleet Access: Naqla provides access to a diverse fleet, including flatbeds and tippers, tailored to heavy-duty materials.
- On-Time Delivery: Through route optimization and real-time tracking, Naqla ensures construction materials arrive on time, avoiding project delays.
- Cost Efficiency: Naqla’s tech-driven approach minimizes deadhead miles, reducing operational costs despite fuel price volatility.
- Scalability for Mega Projects: Naqla’s network supports high-volume, continuous deliveries for large-scale infrastructure projects.
Foodstuff Sector
Logistical Insights:
- Cold Chain for Perishables: Transporting dairy, meat, and frozen foods requires an efficient cold chain network. Temperature monitoring is crucial to comply with safety standards and minimize spoilage.
- Bulk Transport: Staples like grains, flour, and sugar are transported in bulk, requiring secure handling and storage solutions.
- Import Dependency: Egypt imports a significant portion of its food staples, such as wheat. Ports like Alexandria and Safaga handle large shipments, and trucks distribute these imports nationwide.
- Regulatory Compliance: Foodstuff logistics must comply with stringent health and safety regulations, including proper packaging, cleanliness, and timely delivery to prevent contamination or expiration.
How Naqla Excels:
- Reliable Cold Chain Support: Naqla’s fleet includes temperature-controlled trucks with real-time temperature tracking to ensure the integrity of perishable goods.
- Compliance and Safety: Naqla prioritizes adherence to health and safety standards, guaranteeing secure and hygienic transportation of foodstuff.
- Bulk Shipment Efficiency: Naqla specializes in handling high-volume bulk shipments of staples like wheat and sugar, ensuring seamless supply chain operations.
Naqla’s Competitive Edge Across All Sectors
Tech-Driven Operations
Naqla leverages advanced technology, such as real-time tracking, route optimization, and predictive maintenance, to enhance efficiency and reduce costs.
Driver Empowerment
Naqla provides its driver network with regular work opportunities, benefits, and training to ensure high service quality.
Scalability
With a vast trucking network, Naqla adapts to varying sector demands, from seasonal agricultural peaks to high-volume construction deliveries.
Regional Leadership
By serving as a reliable logistics partner, Naqla strengthens Egypt’s role as a key player in regional trade and supply chains.
Heatmaps for Logistical hubs
Mapping the pulse of regional logistics: Visualizing the most active hubs in Egypt and surrounding markets.
Suez Canal Zone (SCZone):
A critical global trade corridor, the Suez Canal facilitates approximately 12% of worldwide trade. In 2022, the canal saw an aggregate of 1.41 billion metric tons of cargo.
Trucks play a vital role in transporting goods to and from ports within the SCZone, connecting maritime shipments with inland destinations.
Alexandria and Mediterranean Ports:
Alexandria Port handles over 60% of Egypt’s trade volume, making it the nation’s largest and busiest port.
Trucking services are essential for distributing imported goods from these ports to various regions and consolidating exports for shipment.
Cairo and Greater Cairo Area:
As a central distribution hub, Cairo connects Upper and Lower Egypt and interfaces with the Suez Canal region.
The city’s strategic location necessitates a high volume of trucking activities to manage the flow of goods across the nation.
Red Sea Ports (Ain Sokhna and Safaga):
Ain Sokhna Port is integral for industrial and petrochemical exports and imports.
Trucks facilitate the movement of goods between these ports and industrial zones, ensuring efficient supply chain operations.
Upper Egypt (Aswan and Qena):
Emerging hubs for agricultural exports and mining resources.
Trucks are crucial for transporting agricultural products and minerals to processing facilities and export terminals.
Rafah and Arish in North Sinai:
Key transit points for humanitarian aid and regional trade.
Trucking services are vital for delivering aid and goods through these border crossings.
Overall Trucking Volumes
Approximately 95% of Egypt’s domestic freight, totaling nearly 500 million tons, is transported by road.
The freight and logistics market in Egypt was valued at USD 10.93 billion in 2025, with projections to reach USD 14.02 billion by 2030, indicating a compound annual growth rate (CAGR) of 5.10%.
These logistical hubs, supported by extensive trucking operations, are essential to Egypt’s role as a central player in regional trade, connecting Africa, the Middle East, and Europe.