Egypt to launch Alexandria-Cairo railway tender in 1Q 2024: Egypt’s Transport Ministry is gearing up to launch a tender for the Alexandria-Cairo railway bypass in 1Q 2024, a ministry source told Enterprise Logistics, confirming a report by Al Mal. So far, some 11 consortia of both Egyptian and global companies have qualified for the tender, the source said.

The timeline: The ministry will announce the consortia later this year, sources reportedly told Al Mal. The ministry will then award the contract in April, they added, though our source could not confirm the timeline for the awarding of the contract.

Interested candidates: Initially, Petrojet, Arab Contractors, Hassan Allam Sons, Concord, and Orascom all expressed their interest in the project. However, the Rail Transport Authority opted for a public qualification tender, followed by a tender that’s exclusive to the qualified bidders, Al Mal reported. Enterprise Logistics could not reach representatives at the companies to confirm if they will submit bids for the upcoming tender.

More details on the finances: The World Bank already approved a USD 400 mn loan for the project back in 2022, with the remaining expenses expected to be covered through local sources, although the precise amount is still subject to adjustments, according to our source.

REFRESHER- The Alexandria-Cairo railway bypass will allow freight trains to travel to and from the Port of Alexandria and the newly-constructed Sixth of October dry port via an alternative western route of Greater Cairo that avoids the congested Greater Cairo-Sixth of October rail corridor. The bypass will be able to handle 15 container trains per day by 2030 and up to 50 trains by 2060.The project is supposed to boost the transport and logistics sector as well as help the country move towards a low-carbon railway system.

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