Nis becoming European gateway to Egypt – New transport corridor via Thessaloniki and Sofia to connect Serbia with Arab markets

The concept of the Arab-Balkan Corridor (ABC), introduced in Serbia and the region this spring, has now taken on a concrete logistical structure - a private-sector initiative is linking Egyptian ports to Thessaloniki, and subsequently connecting them via rail, through Sofia and Nis, to markets in the Balkans and the European Union, which positions Nis as a key hub within the ABC network.

The initiative was unveiled in April by Khaled Hanafy, Secretary-General of the Union of Arab Chambers, during his visit to Bulgaria and Serbia. Meetings were held in Nis with Mayor Dragoslav Pavlovic and representatives from chambers of commerce and the business community. Discussions during the visit covered trade, investment, logistics, industrial cooperation, and technology. BDS Holding BV, which is developing the ABC in partnership with the Union of Arab Chambers, identified Nis at the time as a strategic industrial and technological node within the broader corridor.

The ABC has now entered a new phase. According to an analysis published by EnterpriseAM, the corridor was launched during a two-day event held on September 29-30 at the Nile Ritz-Carlton Hotel in Cairo, organized by the Dutch firm BDS Holding BV and the Union of Arab Chambers. The event aimed to transition the existing initiative into its operational phase.

From Egyptian ports to Nis

According to EnterpriseAM, the ABC is envisioned as a unified private-sector route combining maritime, rail, and road transport. Cargo is collected at Egyptian ports, primarily Port Said and Alexandria, and transported by ship to Thessaloniki, Greece. In Thessaloniki, the goods are transferred to rail and proceed along Pan-European Corridor X, passing through Sofia and Nis toward broader Balkan and European Union markets.

According to the organizers, integrating maritime, rail, and road transport is intended to address issues such as fragmented carriers, complex tariffs, and varying customs regimes, factors that previously made trade between Arab and European markets slower and more costly.

ABC is more than just a transport route. The organizers state that the corridor also encompasses the institutional and digital infrastructure needed to connect companies, chambers of commerce, and other business stakeholders. A so-called Corridor Passport was unveiled at an event in Cairo in September, and the SILA digital platform was announced as a supporting tool for the corridor.

Free trade as additional boost

One factor expected to facilitate trade along this route is the Free Trade Agreement between Serbia and Egypt, which entered into force on September 1, 2025.

In the initial phase, the agreement granted duty-free status to nearly half of all agricultural products and 30% of industrial goods, with plans to expand this coverage to over 90% of products in both sectors over the next ten years.

The Serbian Ministry of Trade notes that agricultural products, including apples and frozen fruit, feature prominently among the goods covered by the liberalization measures.

EnterpriseAM reports that the agreement is one of the factors making a structured transport link between Egypt and the Balkans more commercially attractive, particularly given that Serbia sits at the terminus of both Balkan routes analyzed by the portal.

Second route via Port of Bar

At the same time, Egypt is developing a second link with the Balkans, though it remains in a much earlier stage of development.

Port authorities from Alexandria and Montenegro signed a Memorandum of Understanding in late July during Montenegrin President Jakov Milatovic’s visit to Cairo. The agreement covers cooperation in port management, digital transformation, and the potential establishment of a direct shipping line between Alexandria and Bar.

Unlike the ABC route, however, this one currently lacks a contracted carrier or a published sailing schedule, according to EnterpriseAM.

The link between the Port of Bar and the Serbian market relies on the Belgrade-Bar railroad line, originally built during the Yugoslav era. However, freight rail traffic on this route is currently in decline: approximately 233,000 tons of cargo were transported in the first quarter of 2026, compared to 308,000 tons during the same period the previous year, a drop of roughly 24%.

EnterpriseAM notes that the Port of Bar also faces competition from other regional and Mediterranean ports. Piraeus and Gioia Tauro are better positioned for transshipment, whereas Koper and Rijeka are already established gateway ports closer to the main Central European markets. The planned expansion of the Port of Durres in Albania could also pose additional competition.

– Three factors would make Bar a viable option: a functional rail link to Belgrade, a significant volume of Serbian industrial cargo routed via the Adriatic, and a prolonged disruption in the Suez Canal. Currently, none of these conditions are met – supply chain analyst Wolfgang Lehmacher told EnterpriseAM.

However, Lars Jensen of Vespucci Maritime believes that Bar could be a suitable option for some Balkan countries, specifically Serbia, Albania, and parts of Bosnia and Herzegovina.

Suez alters the logistics equation

The development of new routes is part of a broader shift in Egypt’s logistics strategy following the drop in traffic through the Suez Canal.

Transit fee revenues fell from USD 10.2 billion in 2023 to USD 4 billion in 2024, before recovering to approximately USD 4.8 billion last year. The volume of transit through the canal remains about 40% below pre-crisis levels, according to EnterpriseAM.

Consequently, Egypt is seeking to enhance access to alternative logistics routes and gateway capacities while maintaining strong control over key domestic port facilities.

Among these is the Tahya Misr terminal at the Port of Dekheila in Alexandria, which has a capacity of 1.5 million TEUs. At the same time, the state holds a 42.9% blocking stake against AD Ports’ bid to take control of the Alexandria Container Company.

According to EnterpriseAM, Egypt’s strategy extends beyond Europe. The portal also highlights the development of logistics links with Eritrea, a presence at the Doraleh Multipurpose Terminal in Djibouti, and the consideration of a Safaga-Dar es Salaam shipping route.

Branislava Petrovic

Grad Niš

Privredna komora Srbije

Luka Bar a.d. Crna Gora

BDS Holding BV

Union of Arab Chambers

Port Said

Port of Alexandria

Port of Thessaloniki

Port of Bar

Arab Balkan Corridor ABC

Pan European Corridor 10

maritime rail road transport route

digital transport route

Free Trade Agreement between Serbia and Egypt

export to Arab markets