The Transport Ministry is preparing to take the USD 380 mn Semla-Salloum Railway to a global tender, a government source tells EnterpriseAM. The move signals that the state is moving to lock in the logistics required to support Qatari Diar’s USD 29.7 bn Alam El Roum project.

What we know: The Madbouly government is launching a feasibility study on the project. Once wrapped, a tender may be next, offering the project under the public-private partnership model. The project is scheduled to take around two years to complete once construction begins, the source added.

REMEMBER- Diar has paid USD 3.5 bn for the land and will contribute USD 26.2 bn in in-kind investments to develop the project.

What else is in store?

We’re revamping the outdated 262-km railway line to accommodate for the sprawling urban space. A EGP 48.8 mn direct award contract has been issued internally by the Transport Ministry to launch preliminary rehabilitation operations on the project, in anticipation of the launch of a major tender.

The rail project has been in the pipeline since 2023, when it was originally included in the government’s transport and road network plans. However, economic conditions have delayed the project’s rollout till now, the source said.

It’s a pull to attract FDI

Why does it matter? The North Coast is no longer just a summer getaway — it has become a top destination for large-scale foreign investment, including the landmark USD 35 bn Ras ElHekma agreement with ADQ back in 2024. Efforts are underway to attract further agreements to transform the coast into a year-round global destination — gradually upping population density in tandem with infrastructure expansion.

A possible link to Libya?

What’s next? The ministry is mulling plans to extend the rail line to Libya, the source tells us, alluding that the project could be the needed momentum to push the larger project into fruition. As it stands, the project would link the railway to the anticipated Gargoub Special Economic Zone and Al Jawf Dry Port via the Salloum Land Port.

This could also serve as a link to wider African trade. The Madbouly government plans toinvest EGP 6 bn in the first phase of a new road project connecting Egypt to Libya and Chad.

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