CAIRO: Egypt expects to pull in LE 67 billion over the next two years through public-private partnerships in some 30 transport infrastructure projects to sustain economic growth rates, the transport minister said on Monday.
“Egypt can’t sustain growth levels without a good transport system. Without a good transport system, how can you get one product from one place to another? How can you export products from one country to another? Minister Mohamed Mansour said. “If we can’t have an efficient transport system, then we [are caught] in a bottleneck.
Egypt s economy grew to 7.2 percent, its fastest annual pace in decades. Still, the country’s ailing transport infrastructure overburdened economic growth and development. A series of fatal road, rail, and ferry accidents in recent years have sparked public dismay over the government s handling of transport safety.
The transport system is part of the Egypt story, the minister said, speaking at an event organized by the American Chamber of Commerce in Egypt. We need to upgrade our road, rail and Nile transport systems.
The ministry expects LE 50 billion of private sector investment in its ports and maritime transport alone over the next two-three years. Experts are quite bullish on Egypt’s ports and river transport, which has been under-developed for years. Part of the euphoria comes from the fact that fuel and diesel prices have doubled in recent years – with estimates of further hikes – which gives a competitive edge to river and maritime transport, which has now become cheaper. Another LE 17 billion in public and private investments will be earmarked for roads and the railway system.
“More than 17 transport projects are to be offered [in tenders] this year to private sector companies to upgrade our infrastructure, Mansour pointed out.
The government seeks to face-lift Egypt’s entire ports transport, beginning with major ports in Ain Sokhna, Alexandria, Dekheila, Damietta, and Port Said. Also this year, the ministry plans to offer tenders in four highway projects, two new rail lines, and seven railway stations.
Some of these projects include construction of a new highway that connects Cairo to Marsa Matrouh to Alexandria and Port Said as well as a new ring road that spreads across 400 square kilometers, passing through Suez, Ismalia, Beblis, Banha, and Cairo-Alexandria Desert Road.
The ministry also plans to auction off early next year two new rail lines. The first will run across the Alexandria-Borg Al-Arab Road and the second across the Cairo-Six of October City Road.
Also, up for grabs next year are bids to re-furbish Egypt’s ageing rail stations. The government is trying to attract private companies to acquire and invest in rail stations to give them the “look and feel of international stations.
“This presents a fantastic opportunity [for private investors] to generate revenue from ticket fares, advertisement [material], and commercial services inside these stations, explained Omar El-Bakry, deputy to the minister. “The government will act as a regulator of these stations, while the private sector will run and operate them.
