July 14, 2021

Minister of Transport witnesses the signing of a cooperation protocol between the National Railways Authority, Arab Contractors Company and a number of the biggest companies to establish a number of c

Lieutenant General Engineer Kamel Al Wazir - Minister of Transport witnessed today the signing of a cooperation protocol between the Egyptian National Railways Authority and 9 national Egyptian companies from the biggest contracting and engineering consultancy companies with the aim of public-private cooperation in the establishment of a number of companies to manage and operate a number of railway’s facility activities in cooperation with international consulting offices and operators to provide a distinguished service to the public, upgrade this vital and important facility that transports millions of passengers annually and improve the conditions of the authority's employees. Eng. Sayed Farouk signed the protocol on behalf of the Arab Contractors Company. At the beginning of his speech after the signing of the protocol, the Minister of Transport emphasized that since His Excellency President Abdel Fattah El Sisi - President of Arab Republic of Egypt honored him by assuming the portfolio of the Ministry of Transport; the President gave direction on maximizing the mass transit system in Egypt through modern, developed and eco- friendly means of transport. He declare that all modern means of transportation as the high-speed trains, LRT, monorail, El Raml Tramway, Abu Qir Metro, and BRT buses will be managed and operated by specialized international private sector operators. He added that the participation of the private sector in the management and operation of a number of railway facility activities is not privatization especially that all railway activities and facilities will remain owned by the state, and the tickets value will continue to be determined by the state. The objective of this partnership is to improve the provided service to the public. The Minister stated that this protocol with biggest Egyptian companies wishing to invest in the railway sector to improve the level of service provided to citizens represents an important qualitative transfer in the railway system. The entry of the private sector into the field of management and operation of a number of railway activities will contribute to achieving competitiveness among the different companies. It will improve the level of service provided to the public; preserving the properties and assets of the railway facility and maximizing its resources. It will reflect positively on railway workers in all technical, health and social aspects, creating an appropriate work environment that increases productivity and the level of service provided. The Minister of Transport added that the entering of the private sector and investing in the management and operation of railway activities will include various sectors: passenger and cargo vehicles, railway tractors and repairing, maintenance and renovation of railways. In addition to these, it will comprise the establishing of companies in the field of different workshops in the Railway Authority. He pointed out that the most important activities offered for investment includes establishing companies for: management and operation of goods transport - management and operation of tourist trains - integrated services company - distinguished transport (Talgo trains - Russian air-conditioned vehicles) - repairing, overhauling and developing passenger vehicles - repairing, overhauling and developing vehicles for goods –repair, overhauling and development of new tractors – repair, overhauling and development of tractors at Tebbin – partnership with Airtrack in railways rehabilitation and maintenance works –a new company for the rehabilitation and maintenance of railways). Lieutenant General Engineer Kamel Al Wazir declared that the protocol includes that the companies applying for a specialized international consultancy office to conduct all the necessary studies to develop a comprehensive vision for the methodology of transferring the management and operation of some trains from the authority to the private sector, as well as submitting an international operator with experience in operating trains. He pointed out that these companies will witness great concern with the human resources that the percentage of Egyptian workers for each of these companies is not less than 90% of the total volume of employees in the companies. It is worth noting that the companies that signed the protocol with the Railway Authority are (Orascom Construction - Elsewedy Electric - Samcrete - The Arab Contractors - Concord - Hassan Allam - Al Gharabli - Alkan - Triangle).