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Egypt Logistics Infrastructure

The transportation sector is one of the main drivers of economic development and growth in Egypt, linking production and consumption markets. Egypt’s unique geographic location combined with an expanding infrastructure base is enhancing the country’s position as a key global logistics hub. Egypt is currently embarking on a host of transportation projects in metros and tunnels, railways, ports, and roads.

Roads

Roads play a key role in Egypt transport network, with 94% of Egypt’s freight using roads. The government estimates that US$ 8 billion is needed to upgrade roads over the coming five to ten years. The government has started by allocating over US$ 1 billion to upgrade the road network, and is adding 3,000km to the road network.

The government plans a series of road upgrades, including:

  • Safaga - El Quseir - Marsa Alam: Duplication of the road south of Safaga at 35 km until Marsa Alam, with a total length of 180 km, as well as doubling the road, after South Safaga to El Quasar at 35 km.

    Estimated Capex: US$ 85 million.

  • Ras Sudr - Sharm El-Sheikh:  Duplication of the road through the Ahmed Hamdy tunnel - Ras Sudr - Sharm El-Sheikh to serve the tourism industry and traffic destined to the seaports in El-Tur and Sharm El-Sheikh, as well as the industrial and mining activities in Abu Zenimah.

            Estimated Capex: US$ 71 million.

  • Alexandria - Abu Simbel: Extending the road from Alexandria in the north west of the country to Abu Simbel in the south.

            Estimated Capex: US$ 46 million.

Ports

The government is reported to be planning to triple trade handled by ports in Egypt, and has drafted a long-term plan to raise ports capacity from 120 million tonnes to 370 million tonnes by 2030.

The Red Sea Ports Authority (RSPA) manages nine ports in the Red Sea: Portawfik, Petroleum Basin Port, Adabeya, Sukhna, Hurghada, Safaga, El-Tur, Sharm El-Sheikh and Nweiba. The RSPA is responsible for constructing and periodically maintaining the marine quays of all nine ports, and for servicing the ships using these ports.

The RSPA announced plans to construct dry bulk, container and mixed-use terminals along the nine ports managed by the authority. RSPA has planned 15 projects with an average value of US$ 60 million; and eight projects with an average value of US$ 400 million.

The most notable projects will take place in Soukhna Port, which lies south of Suez and forms part of the Suez Canal Area Development Project (SCADP)

Constructing, operating and managing a Liquid Bulk Terminal

  • Capacity: 15 million tonnes of oils per year

  • Quay: 2,000 m long; 14 - 17 m deep

  • Land area: 900,000 m2

  • Estimated Capex: US$ 650 million

Constructing, operating and managing a Dry Bulk Terminal

  • Capacity: 12 million tonnes per year

  • Quay: 1700 m long; 17 m deep

  • Land area: 720,000 m2

  • Capex: US$ 500 million

Constructing, operating and managing an Agricultural Crops Terminal

  • Capacity: 8 million tonnes per year

  • Quay: 1,100 m long; 14 - 17 m deep

  • Land area: 580,000 m2

  • Capex: US$ 360 million

Constructing, operating and managing a Second Containers Terminal

  • Capacity: 5 million equivalent containers per year

  • Quay: 2,200 m long; 17 m deep

  • Land area: 2,000,000 m2

  • Capex: US$ 650 million

Constructing, operating and managing Dry Bulk Terminal No. 2

  • Capacity: 8 million tonnes per year

  • Quay: 1,100 m long; 17 m deep

  • Land area: 510,000 m2

  • Capex: US$ 287 million

Constructing, operating and managing a Third Container Terminal

  • Capacity: 6 million equivalent containers per year

  • Quay: 2,500 m long; 17 m deep

  • Land area: 1,700,000 m2

  • Capex: US$ 715 million

Constructing, Operating and Managing Multi-purpose Terminal ( 1 )

  • Capacity: 2 million tonnes per year

  • Quay: 580 m long; 17 m deep

  • Land area: 400,000 m2

  • Capex: US$ 143 million

Constructing, Operating and Managing Multi-purpose Terminal ( 2 )

  • Capacity: 2 million tonnes per year

  • Quay: 750 m long; 17 m deep

  • Land area: 370,000 m2

  • Capex: US$ 173 million

Railways

Egyptian railways date back to the mid-19th century. The railway network is crucial for economic growth but suffers from severe lack of investment. The co-chairman of the Egyptian National Railways (ENR) announced a US$ 10 billion investment over 10 years to upgrade and maintain the antiquated railways network; with US$ 2.2 billion coming from the World Bank. The investment will upgrade the rolling stock, rail Infrastructure, as well as training and knowledge transfer. Egypt has plans to expand and upgrade its rail network. There are plans to connect Luxor and Hurghada by a railway line, and to build light rail to connect Cairo with its two main satellite cities: 6th October in the west and New Cairo in the east. However, the most notable railway project is the High Speed Rail (HSR) from Alexandria to Aswan.

HSR is a new railway alignment dedicated for the high speed train between Alexandria and Aswan through Cairo, Assiut and Luxor. The line is planned to be built in three phases:

Phase I: Cairo - Alexandria

A pre-feasibility study has been conducted by an Italian company, and indicated the following key parameters:

    • Line length: 202 km

    • The running speed: 300-350km/h

    • Execution duration: 5 years

    •  Trip time: 60 minutes non-stop

    •  Expected passengers: from 10 to 18 million/year

    • Capex estimate: US$ 3.5 billion

Phase II: Cairo - Luxor

The development of the tender document and TOR for the feasibility study is ongoing.The basic data of the line are:

    • Line length: 680 km

    • The running speed: 300-350 km/h

    • Execution duration: 8 years

    • Expected passengers: 25 to 30 million/year

Phase III: Luxor - Aswan

The development of the tender document and TOR for the feasibility study is ongoing. The basic data of the line are:

    • Line length: 210 km

    • The running speed: 300 -350km/h

    • Expected passengers: 25 to 30 million/year