Railways Opportunities

An Expert's View about Non-Automobile Transport Equipment in Egypt

Posted on: 23 Oct 2011

Egypt’s railway sector can be described as adequate to handle the country’s needs, although currently its operational capacity is stretched at its limits. The importance of Egypt’s railway for freight transportation is forecast to reduce slightly over the medium term, from 8.34% in 2008 to 7.67% in 2012. However, the volume is set to grow by an average of 3.46% a year between 2008 and 2012.

Sector briefing Railways Opportunities in Egypt Why Egypt? ? The first railway road was built in Egypt ? Egypt has the largest population in the on the 12th of July 1851, and started Arab world (approximately 80 million) working after the Suez Canal opening and is the fourth-largest economy. Real ceremonies in 1854. GDP growth has averaged 7 percent for the past 3 years. In 2008/2009, it ? Egypt is considered the largest railway slowed down to 4% due to impact of market in the Middle East and Africa global financial crisis but started to with around 6700 km of railways grow to 5.5% in the first quarter of network and 820 stations. 2009/2010. ? The Egyptian National Railways ?ENR? is ? Events in Egypt since January 2011, 100% public sector organisation and the transition to democracy, have dependant of the Ministry Of Transport had a negative impact on the economy. (MOT). Economists forecast that overall growth for FY 2011 will be around 3% rather ? In a large country such as Egypt than the 5.7% which had been railways network will always remain a expected. cost effective method of transportation. ? The transition government has placed a ? Egypt?s railway sector can be described real emphasis on the need to accelerate as adequate to handle the country?s economic reform alongside democratic needs, although currently its operational developments and improve further the capacity is stretched at its limits. The climate in Egypt for international importance of Egypt?s railway for freight investment. transportation is forecast to reduce slightly over the medium term, from ? Egypt strategic location in the centre of 8.34% in 2008 to 7.67% in 2012. MENA region (800 million people) is However, the volume is set to grow by bridging the three continents of Asia, an average of 3.46% a year between Africa and Europe. It is the hub for the 2008 and 2012. world?s maritime traffic with commercial ports on the Mediterranean and Red For more information about our market please Seas. visit Egypt page at: www.ukti.gov.uk/egypt ? Egypt is signatory to many regional and international Free Trade agreements ?Egypt is considered the which reduce or wave completely the largest railway market in the custom duties on exported / imported Middle East and Africa with goods. around 6700 km of railways ? The corporate and individuals income network.?? taxes are maximum 20%. UK Trade & Investment Sector briefing: Railways opportunities in Egypt Opportunities ? The Government by being aware of the ? There is an ongoing feasibility study for need of an extensive modernisation and a high speed railway to connect Cairo upgrading allocated funds of around and Alexandria, the tender will be $7.04 billion to reform the Egyptian issued under PPP principal. National Railway Authority (ENR). Reforming the railway system is one of ? The government is considering a project Egypt?s top priorities at present. Private of 300 km rail line linking Egypt and sector is allowed to participate and Sudan?s railways networks starting from operate railway projects. Aswan. ? There is also a significant local demand ? MOT has plans to invest around US$ 2 for railway parts in the Egyptian billion in the next years to improve, market, mainly for: Locomotives and develop, renew and establish a new spare parts, electrical and mechanical system of signalling for the entire spare parts; signalling equipment; network. electrification and maintenance; safety and security equipment; diesel engines, ? The government invested US$ 0.5 traction motors, alternators, radiator billion during 2009/2010 in Railways. and fans and train station management/upgrade ? Under the PPP initiative, the GoE is planning for two projects with total ? On August 2nd, 2009, the World Bank investments of US$ 0.75 billion. The signed in Egypt a loan of $270 million to projects are intended to relocate finance the upgrade of the Egyptian Matrouh railway line to the south of the railway. The loan duration is 30 years, international road, and establish cairo- with 5 years grace period, at an annual 10th of Ramadan railway line. interest rate of 1.5%. The project aims to improve the efficiency, reliability, and ? Other new rail lines are forecasted to safety of the railway services. link industrial agglomerations to Cairo Investment will be focused on and Alexandria. upgrading the signalling systems and erecting new tracks to meet the large You can be alerted to business opportunities on demands on this service. The renewal of a regular basis by registering on the UKTI the railway is expected to begin in website. Find out more on UKTI?s business March 2010 and end in September opportunities service on the UKTI website. 2012, while developing the signals system will start in September 2010 and end in September 2014. UK Trade & Investment Sector briefing: Railways opportunities in Egypt UKTI contacts Major events and activities Sonia ELKATTAN Middle East Rail Senior Adviser, Trade & Investment The largest rail exhibition and conference British Embassy 7 Ahmed Ragheb St, Garden City, Cairo, Egypt in the Middle East Tel 00 20 22 791 6000 www.terrapinn.com Fax 00 20 22 791 6130 Email sonia.elkattan@fco.gov.uk New export events are added daily to the site www.ukti.gov.uk and you can register to be alerted to them on a daily, weekly or monthly basis. Marwa Hussein Adviser, Trade & Investment UKTI?s Tradeshow Access Programme (TAP) British Embassy provides grant support for eligible Small & 7 Ahmed Ragheb St, Garden City, Cairo, Egypt Medium Sized Enterprises (SME's) to attend Tel 00 20 22 791 6000 trade shows overseas. Find out more about Fax 00 20 22 791 6130 UKTI support for attendance at overseas Email: marwa.hussein@fco.gov.uk events. www.ukti.gov.uk Gary Hunt Deputy Director, Trade & Investment, Egypt British Embassy 7 Ahmed Ragheb St, Garden City, Cairo, Egypt Tel 00 20 22 791 6061 Fax 00 20 22 791 6130 Email: gary.hunt@fco.gov.uk www.ukti.gov.uk UK Trade & Investment Sector briefing: Railways opportunities in Egypt Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Egyptian market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Egypt, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Railways opportunities in Egypt
Posted: 23 October 2011

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