{"id":565714,"date":"2021-04-26T13:42:43","date_gmt":"2021-04-26T13:42:43","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/26\/three-scenarios-for-how-the-private-sector-could-help-egypts-railway\/"},"modified":"2021-04-26T13:42:43","modified_gmt":"2021-04-26T13:42:43","slug":"three-scenarios-for-how-the-private-sector-could-help-egypts-railway","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/26\/three-scenarios-for-how-the-private-sector-could-help-egypts-railway\/","title":{"rendered":"Three scenarios for how the private sector could help Egypt\u2019s railway"},"content":{"rendered":"

<\/a> Here\u2019s what private sector involvement in Egypt\u2019s railways might look like:<\/strong> The government is mulling establishing three JVs with foreign rail companies to manage Egypt\u2019s railway network as part of plans to bring in the private sector to improve the country\u2019s ailing railway system following a string of deadly accidents, Al Mal<\/a> reports, citing unnamed sources in the know.<\/p>\n

Scenario #1- Each company would manage a geographic section of the network:<\/strong> One would be assigned to the Upper Egypt lines, one to the Lower Egypt lines, and the third would manage the suburban short-distance railway tracks, sources said.<\/p>\n

Scenario #2- One firm to run them all?<\/strong> The government could contract an international company that would be held responsible for managing a certain number of passenger cars, or all of them, depending on the company\u2019s technical capabilities. This company would be mandated with improving passenger rail services and reducing losses.<\/p>\n

Scenario #3- Divvying up and managing new rail cars: <\/strong>The Transport Ministry would assign the existing air-conditioned railcars and the new 1.3k railway cars from Russia's Transmashholding to a foreign player to manage. The Egyptian National Railways (ENR) would only be left responsible for non-air conditioned railcars until they are taken out of service, sources said. Transmashholding has so far delivered 260 railcars under a EGP 22 bn contract<\/a> signed with ENR back in 2018.<\/p>\n

Whichever way it goes, the private sector\u2019s involvement isn\u2019t going to take hold before 2022.<\/strong> Regardless of the time needed for the Transport Ministry to study the scenarios and make a choice, it is highly unlikely that any company would agree to assume responsibility for Egypt\u2019s railway infrastructure as it currently stands. The wait time is necessary until the country\u2019s railway signaling system is upgraded and ENR takes receipt of the remaining Transmashholding railcars next year, the sources said.<\/p>\n

BEFORE YOU GET YOUR HOPES UP- This does not mean the railways will be privatized: <\/strong>Plans to involve the private sector in revamping Egypt\u2019s rail sector do not mean the government is looking at railway privatization, Transport Minister Kamel El Wazir said as he addressed the House this morning to present the railway development plan, the local press<\/a> reports. El Wazir had been speaking today in a special hearing of the House of Representatives on the recent spate of train derailment.<\/p>\n

Bringing in the private sector to manage the country\u2019s railways had originally been in the works back in 2018,<\/strong> when the Transport Ministry began procedures<\/a> to establish private sector-run companies to manage each railway, but it appears these plans fell by the wayside. After the recent rash of rail accidents, culminating in last week\u2019s derailment<\/a> near Qalyubia\u2019s Toukh, it appears these plans are now being revived<\/a>.<\/p>\n

Reducing congestion will be a major feature of the development plan<\/strong>, El Wazir said, adding that a second railway track connecting Cairo with the Delta and Upper Egypt is essential One line is not enough to absorb the increasing capacity of passengers and commuters, he told representatives.<\/p>\n

Addressing the \u201chuman\u201d elephan...sorry...element in the room: <\/strong>El Wazir made did not mince words when calling out unqualified workers operating the lines. He called on MPs to amend the Civil Service Act to enforce tougher penalties for railway employees linked to extremist networks or substance abuse, according to Al Mal<\/a>. El Wazir also pointed to repeated instances of vandalism that the tracks are regularly subjected to, Youm7<\/a> reports.<\/p>\n

READ OUR LAST ISSUE OF <\/strong>HARDHAT<\/a><\/strong> to learn why poorly-trained staff is a major contributing factor to the recent series of rail accidents in Egypt.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s what private sector involvement in Egypt\u2019s railways might look like: The government is mulling establishing three JVs with foreign rail companies to manage Egypt\u2019s railway network as part of plans to bring in the private sector to improve the country\u2019s ailing railway system following a string of deadly accidents, Al Mal reports, citing unnamed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10090],"tags":[1071,633,209,3042,207,208],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-565714","post","type-post","status-publish","format-standard","hentry","category-speed-round-transport","tag-egyptian-national-railways","tag-enterprisepm","tag-kamel-el-wazir","tag-transmashholding","tag-transport","tag-transport-ministry","wpautop","entry"],"acf":{"mongo_id":"ee9f3a01-09ea-42cf-8afb-63027f892ce0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[565710],"teaser":"","voice_url":""},"yoast_head":"\nThree scenarios for how the private sector could help Egypt\u2019s railway - 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Details are sketchy so far, but the sources say that\u2026","rel":"","context":"In "SPEED ROUND: TRANSPORT"","block_context":{"text":"SPEED ROUND: TRANSPORT","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-transport\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/5\/327.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":574792,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/22\/world-bank-mulls-financing-part-of-usd-640-mn-railway-upgrade\/","url_meta":{"origin":565714,"position":1},"title":"World Bank mulls financing part of USD 640 mn railway upgrade","author":"enterpriseam admin","date":"22 September 2020","format":false,"excerpt":"DEBT WATCH- World Bank mulls financing part of USD 640 mn railway upgrade: The World Bank is studying a loan to the government to partially fund a USD 641.2 mn project to improve safety provisions on the railway line connecting Alexandria to Upper Egypt, the local press reports. The proceeds\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/9\/237.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":566802,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/14\/the-private-sector-will-run-much-of-egypts-rail-network\/","url_meta":{"origin":565714,"position":2},"title":"The private sector will run much of Egypt\u2019s rail network","author":"enterpriseam admin","date":"14 July 2021","format":false,"excerpt":"SMART POLICY- Nine Egyptian companies \u2014 almost all of them private sector \u2014 will manage and operate Egypt\u2019s rail system under a cooperation protocol signed with the National Railways Authority. Transport Minister Kamel El Wazir isn\u2019t using the word \u201cquasi-privatization,\u201d but it feels very much like a step in that\u2026","rel":"","context":"In "SPEED ROUND: INFRASTRUCTURE"","block_context":{"text":"SPEED ROUND: INFRASTRUCTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-infrastructure\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/424.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565647,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/21\/egypts-rail-network-could-be-partially-privatized\/","url_meta":{"origin":565714,"position":3},"title":"Egypt\u2019s rail network could be partially privatized","author":"enterpriseam admin","date":"21 April 2021","format":false,"excerpt":"Private rail companies will be brought on board as operators of new trains the government is adding to Egypt\u2019s existing railway network, Transport Minister Kamel El Wazir said in a statement. Ongoing plans include the purchase of six new passenger trains from Spain\u2019s Talgo, which could be operated by a\u2026","rel":"","context":"In "SPEED ROUND: TRANSPORT"","block_context":{"text":"SPEED ROUND: TRANSPORT","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-transport\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":578360,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/26\/cabinet-gives-initial-approval-to-freight-transport-privatization-makes-some-shop-owners-lives-easier-after-public-shops-law-controversy\/","url_meta":{"origin":565714,"position":4},"title":"Cabinet gives initial approval to freight transport privatization + makes some shop owners\u2019 lives easier after Public Shops Law controversy","author":"enterpriseam admin","date":"26 December 2022","format":false,"excerpt":"Are we one step closer to privatizing Egypt\u2019s freight transport sector? 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