North Africa and the Middle East are experiencing rapid cold chain development. The market is projected to reach $41.1 billion by the end of 2030 with a compound annual growth rate of 8.8%, according to BCC Research.
DP World has announced plans for a cold storage facility in Egypt's Al Oula region. The investment, valued at about $29 million (approximately 1.4 billion Egyptian pounds), involves the construction of a 174,311 square feet warehouse within the Elsewedy Industrial Park. The facility will feature eight temperature-controlled chambers for refrigerated and frozen goods, fruits, vegetables, and dairy, with a total capacity of 25,000 pallet positions.
Mohammad Shihab, general manager of DP World Egypt, said the project is "a major step in strengthening Egypt's cold chain capabilities and creating new opportunities for trade and industry."
The development comes as Africa's food storage capacity remains limited, covering less than 30% of annual production. The shortage contributes to high post-harvest losses, with nearly 40% of perishable goods and 20% of other food products lost annually along the supply chain.
Cold storage availability is seen as an important factor for producers. For agricultural companies, predictable access can determine whether harvests are profitable. For consumers, it can provide fresher produce and a more stable supply. However, building the warehouse is only part of the process. The efficiency of operations will depend on power supply, maintenance, transport connections, and workforce skills. Without this, the project risks under-utilization, as has been the case with other infrastructure in the region.
If implemented effectively, the facility could serve as a model for similar projects. Its performance will depend on governance, regulatory backing, and integration into both regional and international trade flows.
According to BCC Research, five factors are driving cold chain expansion in North Africa and the Middle East. Rising demand for perishables is linked to urbanization, population growth, and higher disposable incomes. E-commerce and online grocery shopping are increasing the need for last-mile logistics in urban centers. Governments are introducing tighter controls on food safety and pharmaceutical storage, prompting the adoption of advanced cold chain systems. Companies are investing in smart warehouses, monitoring systems, and automation to improve efficiency. The region's location between Europe, Asia, and Africa strengthens its role in trade flows for temperature-sensitive goods.
As populations grow and more cold storage becomes available, competition is intensifying to establish a leading role in the regional market.
Source: Freight Waves