The fault in our railways: Egypt’s railway network has a total length exceeding 10kkms, linking lower and upper Egypt — more than half (60%) of the network is concentrated in the Nile Delta. Yet, only a mere 2% of the country’s freight is transported by rail, with 96% of the country’s cargo moving on trucks, according to World Bank calculations.

By the numbers: Railways currently move an average of 5.5 mn tons of cargo a year thanks tosteps taken to modernize the network and the addition of new trains, sources in the transport sector told us. The figure can double if the state adds more freight trains to its fleet, which will help the Madbouly government reach its goal of moving 30 mn tons of cargo a year by 2030.

Why does it matter? Using railways to move freight comes with a wide array of advantages.

  • Trains can transport larger volumes compared to trucks, making them a morecost-effective solution for transporting large volumes of bulk commodities over long distances.
  • Trains are four times more fuel efficient than trucks, which can help make trains a cheaper alternative to transporting goods by road.
  • Lower maintenance cost: Trains, in comparison to trucks, can travel for long distanceswith less maintenance. The reliance on trains also reduces the use of roads, reducing wear and tear caused by heavy trucks.

Increasing reliance on trains is also better for our green aspirations: Rail transport isgenerally more fuel-efficient than road transport, especially over long distances, which results in lower emissions per ton-mile of cargo transported. It also helps reduce the number of trucks on the road, which can alleviate traffic congestion and decrease the associated emissions and fuel consumption from idling in traffic.

But, trucks do have some advantages: Trucks are more flexible as they don’t abide by a specific schedule, theyalso have a “wider and more accurate coverage.”

So, what’s standing in Egypt’s way to boost reliance on rail transport? The lack of regulationsplays a key role in the low volumes of cargo transported by trains, pushing the private sector to lean towards trucks. The railway network is also fairly limited in the number of trains it can accommodate — the railroad linking the Port of Alexandria’s and the Sixth of October Dry Port can only accommodate three freight trains in each direction a day.

Egypt owns the region's most extensive and historic railway network, two officials in therailway sector told Enterprise. They explained that the little attention the state is paying to the country’s trains despite their old age has led to a notable shift towards road and maritime freight solutions.

What is the government doing on this front? The government is simultaneously upgrading itsports, while creating connections between them — this includes leveraging communication technologies through an expansive network encompassing roads, bridges, railways, dry ports, and logistic zones, the sources added.

If it all comes together, it would mean more efficient local supply chain networks: Thegovernment's strategy aims to streamline the flow of goods by cutting back on the time ships spend in maritime ports, the sources told us. The vision is to transform seaports into mere transit points and dry ports to serve as the ultimate destinations for goods.

The details: This setup is expected to feature adjoining logistic zones — designed forcomprehensive services including packing, wrapping, manufacturing, and distribution — to nearby industrial regions. The move is expected to reduce cargo loss, speed up the process, and consequently drive down the cost of the final products.

The plan: The Sokhna-Alexandria high-speed rail line— a critical component designed toenhance efficiency, with its first leg being referred to as “Suez Canal on tracks” — is currently 60% complete, another source at the transport sector source told us. This project also entails setting up commercial and logistical zones, serving the rail line. This network will primarily facilitate the transport of goods to all parts of the country.

The FX crunch has hindered the plan: The USD shortage is a big issue for the Sokhna-Alexandria line that has caused significant delays, but prearranged contracts for new trains, coupled with funding from international development finance institutions have propelled the project’s progress, according to a source.

Remember: We got USD 400 mn in funding from the World Bank in 2022 to develop a railcorridor that allows freight trains to move between the Port of Alexandria and the Sixth of October Dry Port via an alternative route to the west of Greater Cairo. This link is expected to handle 15 container trains per day by 2030 and up to 50 trains by 2060.

Private sector to the rescue? There is a push towards segregating freight from passenger railservices by handing it over to the private sector, a source at the Transport Ministry told Enterprise. The private player contracted would also take care of the trains’ refurbishment. Despite floating the notion of a medium-term private concession to take over train operations and infrastructure utilization, the plans are yet to materialize, the source added.

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