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Egypt seeks funding for new freight rail networks
13 March 2017
Egypt is seeking more than 167 million euros ($178.75 million) in investments to develop domestic freight rail networks, the transport minister said.
The networks would link major inland industrial projects to key ports in the Arab state, including Egypt’s biggest phosphate mine Abo Tartoor.
“We are proposing the Safaga freight line, connecting Abo Tartoor to the Safaga port (along the) Red Sea,” Hesham Arafaat told the Middle East Rail conference in Dubai last week.
The 680-km line could be developed under a build-operate-transfer model and is estimated to cost 85 million euros, according to the minister’s presentation at the conference. The line is forecast to take two years to build and support freight movement of eight million tonnes by 2020. The projected internal rate of return (IRR) on the project is 16 to 17 percent.
Egypt is also looking to build and maintain a 62-km freight and passenger railway between the industrial city of Mansoura and Damietta port on the Mediterranean coast, Arafaat said.
The government is considering public private partnership and maintenance and modernization models to implement the project, which is expected to cost 82 million euros with a forecasted IRR of 10 percent, according to the presentation.
Zawya Projects reported last week that the country was also seeking 13 billion euros in funding for a proposed three-line high-speed rail project as part of plans to boost the Arab country’s vital tourism sector. The network would connect Alexandria, Luxor, Hurghada and the capital Cairo.
(Reporting by Megha Merani)
© Zawya Projects News 2017