Railways Sector in Egypt

An Expert's View about Freight Rail Transport in Egypt

Last updated: 14 Mar 2011

Egypt’s railway sector can be described as adequate to handle the country’s needs, although currently its operational capacity is stretched to its limits.

Sector briefing Railways Opportunities in Egypt Why Egypt? ? Egypt has the largest population in the Arab world (approximately 80 million) and is the fourth-largest economy. Real GDP growth has averaged 7 percent for the past 3 years. In 2008/2009, it slowed down to 4% due to impact of global financial crisis but started to grow to 5.5% in the first quarter of 2009/2010. Egypt has a strategic location in the centre ?Egypt is considered the of the Middle East and North Africa (MENA) region (800 million people) and has links to largest railway market in the the three continents of Asia, Africa and Middle East and Africa, with Europe. It is the hub for the world?s around 6700 km of railways maritime traffic, with commercial ports on the Mediterranean and Red Seas. network.?? ? Egypt is a signatory to many regional and ? In a large country such as Egypt, a railway international Free Trade agreements which network will always remain a cost effective reduce or wave completely the custom method of transportation. duties on exported / imported goods. ? Egypt?s railway sector can be described as ? Corporate and individual income taxes are adequate to handle the country?s needs, no more than 20%. although currently its operational capacity is stretched to its limits. The importance of ? In 1853, Egypt became the second country Egypt?s railway for freight transportation is in the world, after the UK, to build a forecast to reduce slightly over the medium national railway. term, from 8.34% in 2008 to 7.67% in 2012. However, the volume is set to grow ? Egypt is considered the largest railway by an average of 3.46% a year between market in the Middle East and Africa, with 2008 and 2012. around 6,700 km of railways network. For more information about on market ? The Egyptian National Railways ?ENR? is conditions in Egypt, see the UKTI website. 100% public sector organisation dependant of the Ministry of Transport (MOT). UK Trade & Investment Sector briefing: Railways opportunities in Egypt new signalling system for the entire Opportunities network. ? There are opportunities for UK companies in ? Other new rail lines are forecasted to link supplying equipment and parts across the the industrial areas of Cairo and Alexandria. product range. Planned investment in the rail network also opens up opportunities in Business opportunities are added daily to the financial, safety and regulatory services as UKTI website. These leads are sourced by our well as training and customer care. Plans staff overseas in British Embassies, High for new and refurbished lines also create Commissions and Consulates, across all sectors the need for multi-disciplinary consultancy and in over 100 markets. services and systems integrators. Search for business opportunities on the UKTI ? The Government, aware of the need for an website, or register to receive regular updates. extensive modernisation and upgrading of the rail system, allocated funds of around $7.04 billion to improve the Egyptian National Railway Authority (ENR). Upgrading the system is now one of Egypt?s top priorities and private sector involvement is being sought to plan, develop and operate railway projects. ? There is significant local demand for railway products, mainly for: locomotives; electrical and mechanical spare parts; signalling equipment; electrification and maintenance machinery; safety and security equipment; diesel engines, traction motors, alternators, radiator and fans and station management and upgrade equipment. ? On 2 August 2009, the World Bank signed a loan of $270 million to finance the upgrade of the Egyptian railway. The loan duration is 30 years, with 5 years grace period, at an annual interest rate of 1.5%. The project aims to improve the efficiency, reliability, and safety of rail services. Investment will be focused on upgrading the signalling systems and laying new tracks. The renewal of the track is expected to begin in March 2010 and end in September 2012, while developing the signals system will start in September 2010 and end in September 2014. ? There is an ongoing feasibility study for a high speed railway to connect Cairo and Alexandria; the tender will be issued under PPP principles. ? The government is considering a project of 300 km rail line linking Egypt and Sudan?s railways networks starting from Aswan. ? The Ministry of Transportation (MOT) has plans to invest around US$ 2 billion to improve, develop, renew and establish a UK Trade & Investment Sector briefing: Railways opportunities in Egypt Major events and activities UKTI contacts Sonia ElKattan Middle East Rail 2010 Senior Adviser, Trade & Investment The largest rail exhibition and conference in British Embassy the Middle East: 7 Ahmed Ragheb St, Garden City, Cairo, Egypt www.terrapinn.com/2010 Tel 00 20 22 791 6000 Fax 00 20 22 791 6130 For details on more events, use the events Email sonia.elkattan@fco.gov.uk search on the UKTI website or register to receive regular updates. New export events are Marwa Hussein added daily. Adviser, Trade & Investment British Embassy UKTI?s Tradeshow Access Programme (TAP) 7 Ahmed Ragheb St, Garden City, Cairo, Egypt provides grant support for eligible Small & Tel 00 20 22 791 6000 Medium Sized Enterprises (SMEs) to attend Fax 00 20 22 791 6130 trade shows overseas. Email: marwa.hussein@fco.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 Derek Griffiths Head, Rail Sector UK Trade & Investment Kingsgate House 66-74 Victoria Street London, SW1E 6SW Tel: 0207 215 4773 Email:Derek.Griffiths@ukti.gsi.gov.uk UK Trade & Investment Sector briefing: Railways opportunities in Egypt Next steps - how UKTI can help British companies wishing to develop their This work is available via our Overseas Market business in the Egyptian market are advised to Introduction Service (OMIS), a chargeable undertake as much market research and service which assists British-based companies planning as possible in the UK. UKTI?s team in wishing to enter or expand their business in Egypt, with its wide local knowledge and overseas markets. experience, can provide a range of services to British-based companies wishing to grow their To find out more about commissioning this business in global markets. work, or accessing other UKTI services and specialist advice, contact your local UKTI office. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Egyptian market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Egyptian market 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 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Railways opportunities in Egypt
Posted: 29 September 2010, last updated 14 March 2011