Dailynewsegypt

Author: Rehab Saber

  • Automech Formula in Fifth Settlement: new start for car market

    Automech Formula in Fifth Settlement: new start for car market

    Minister of Trade and Industry Amr Nassar, while visiting the Automech Formula, said that the car industry in Egypt represents one of the most important strategic sectors in the national economy, especially as it is a locomotive for the development of many related industrial sectors. He pointed out that the Egyptian market has all the resources that qualify it to become a major centre for the automotive industry in the Middle East And the continent of Africa.

    Nassar visited the Automech Formula Exhibition on Saturday, which is held in the 5th Settlement between 26 and 30 September.

    Nassar visited all the exhibitors’ pavilions and talked to companies’ representatives.

    He was supposed to inaugurate the exhibition, but missed the opening as he was on a trip with President Abdel Fattah Al-Sisi to the UN Assembly. The exhibition was inaugurated by Reda Abdel Moaty, head of the Consumer Protection Authority, instead.

    Amr Nassr during a tour in Automach Formula
    Amr Nassr during a tour in Automach Formula

    Nassar praised the strong presence of major car companies in this exhibition in a competitive framework that could revive the market again and boost confidence in the market. The exhibition included a showroom for electric cars for the first time, along with the hybrid models.

    The Automech Formula is the largest international automotive exhibition in Egypt, the Arab region and North Africa, with nearly half a million visitors.

    Abdul Moaty inaugurated the fifth round of the exhibition. This round is considered the starting point for the automotive industry after the challenges it experienced last year.

    Companies are keen to bring all new products very carefully, which is reflected in the good organisation and innovative way of displaying cars to show visitors.

    A fierce competition witnessed by the new exhibition grounds in the fifth settlement amid visitors from different countries to attract global investments in Egypt in conjunction with the ongoing economic and industrial reform.

    In an unprecedented phenomenon, electric cars attracted the attention of visitors. Some companies introduced the first versions of electric cars, which carried new technological concepts to transform cars into more than a mean of transportation.

    Not only did electric cars were put up: a company announced the establishment of the first seven electric car recharge station to make their launch more imminent.

    Despite the relatively high cost of living and prices, passion did not prevent car enthusiasts from attending the most important event in the automotive world domestically. The venues were crowded by clients keen on learning the newest updates of the market.

    It is remarkable that the companies, in the current round, aimed to increase their market share in Egypt—evident by the press conferences of each of them separately. This included different models, such as Sedan and SUV. Every company was interested to provide the most it could to win the satisfaction of the Egyptian clients.

    The exhibitors did not overlook the introduction of hybrid cars, which combine electric and gasoline engines. This comes following the removal of customs on clean cars.

    The doors of the Automech Formula will continue to receive visitors over the next four days on an area of 45,000 sqm and 50 new models.

    Meanwhile, the Automech Formula witnessed dense turnout on the first day, pushing the expectations of exhibitors regarding their sales projection.

    Khalid Hussain, spokesperson for the Abou Ghali Group, said that the exhibition witnessed a high demand from visitors and predicted that sales would double at the end of the exhibition.

    He told Daily News Egypt that the group aims to attract more dealership contracts in the coming period to maintain sales and make them more profitable.

    Thomas Zorn, CEO and president of Mercedes-Benz Egypt, said that the company is keen on participating in the exhibition every year because of the benefits of signing a large number of purchasing contracts with local customers.

    He pointed out that the Egyptian market is among the promising markets for all Mercedes-Benz cars, especially after the increase in sales, during the first seven months of the year.

    Mohamed Hany, marketing director of SMG, said that the company did not participate last year, but was keen to reach more clients through the exhibition this year.

    Islam Shawkat, director of Retail Sales at Dynamix Distribution, General Distributor of Fiat, Alfa Romeo, and Jeep, said that the company introduced the latest Jeep 2019 Compass for the first time in Egypt, as well as 500 X and 500 C of Fiat, Tipo hatchback 1600 and 1400, in addition to several Alfa Romeo models.

    Mercedes-Benz sales register 2.3m cars in 2017

    Sales of Mercedes-Benz globally reached 2.3m cars last year. The company plans to reach 3m this year.

    Zorn, said that the company plans to expand in Egypt through injecting more models, such as C-Class, E-Class, and S-Class.

    He explained that the new models from Mercedes-Benz include S550 and S450.

    This year is one of the distinctive years for Mercedes-Benz Egypt, where the company introduced an integrated collection of new cars specifically for the Egyptian market, he added and elaborated that the company made significant improvements in the C-Class to include Cabriolet and Coupe models.

    C-Class are the top selling models since introduced for the first time during the Automech Formula 2017.

    He said that the company will continue to pump investments in the improvement and development of customer service, which reflects the innovations offered by the company and commitment towards the markets and clients.

    Subaru offers its latest models

    “The Egyptian market is expected to close its sales at 175,000 this year,” said Khaled Hosny, sales director of Abou Ghaly Motors Group, exclusive agent of Subaru of Japan.

    During a press conference, Hosny said that sales of the Egyptian market will surpass 500,000 based on the monthly growth rate, which stands at 35-40%.

    In the same context, he said that Abou Ghaly is offering for the first time one of the models of Subaru, during the exhibition, which is a four-wheel drive with all safety features.

    Schneider Electric, Revolta cooperate to establish seven electric cars recharging hubs

    Revolta has completed the implementation of the first phase of infrastructure projects in two provinces, which aims to establish seven electric cars recharging stations.

    Sherif Abdel Fattah, Schneider Electric vice president, said the company had signed a cooperation protocol with Revolta to develop the infrastructure for the construction of seven stations in seven governorates.

    During a press conference, he said that Revolta is close to completing the first phase in Ismailia and Suez, while the second phase will start in January 2019.

    For his part, Mohamed Mustafa, CEO of Revolta, said that the initial investments in the infrastructure of recharge station is set at EGP 300m and expected to be completed by the end of 2020.

    Porsche launches 3rd Cayenne generation

    Porsche introduced the third generation of its Cayenne models, along with the 911 GT2 RS, during the Automech Formula 2018.

    Ibrahim Ghattas, chairperson and CEO of SMG, dealership of Porsche in Egypt, said that the company is celebrating 70 years in Egypt with the launch of the 3rd Cayenne generation.

    He told DNE that Cayenne has achieved the highest sales rate of Porsche cars worldwide.

    He explained that the company launched the first generation of Cayenne in 2002.

    Ghattas said the car has a sporty character that combines precision design with driving dynamics. The company launched 911 GT2 RS as well, which comes with a light engine of 6 cylinders and 700 hp.

    He noted that SMG aims to open a new branch in ​​Abou Rawash area in Giza and includes a showroom and a maintenance centre by the end of this year.

    Zotye aims to increase its stake in Egypt

    Zotye Automotive has signed a new strategy with EF Group to improve the company’s services in Egypt.

    “The company has been working in the car market since 2015,” head of the company said.

    He stressed that the company aspires to expand its sales in Egypt in the coming years through the introduction of many new models.

    187% increase in Fiat sales

    Fiat Chrysler Automobile said its sales increased during the first seven months of the year.

    CEO of the company’s dealership in Egypt, Abdul Rahman Soltan, said that they realised 113% increase in sales, during the first seven months of the year, along with 187% increase in Fiat sales.

    Nissan introduces Blade Glider

    Nissan introduced its electric Blade Glider model during the exhibition.

    The company showcased a model, of which there are only two units in the world, noting that it can reach 190 kmh.

    Head of Nissan Egypt, Kohei Maeda, said that the company is keen on developing its products to save the environment, adding that they eye offering new models that match Egyptians’ requirements.

    Nissan entered the Egyptian market with its factory in 2005 with investments of $100m.

    1.2m Skoda cars sold last year

    SKODA cars sales this year have reached 844, up by 11% compared to 2017.

    Company regional director of Asia, Africa, and Overseas Sales for SKODA, said the company has succeeded in increasing its sales to the European market by 80% this year, 52% in Africa, and 20% in China.

    During a press conference, he said that the company realised global sales of 2m cars at the end of last year, with plans to boost sales further this year.

    He explained that the company’s sales achieved growth in Algeria, Tunisia, and Morocco. It aims to boost sales in Egypt by 5% per year, through expanding distribution network and relying on sports and four-wheel cars, along with improving after-sales services.

    Shell denominates 18.5% of lubricants sales in Egypt

    Saher Hashem, managing director and sales manager of Shell Egypt, said that the company has 18.5% of the Egyptian lubricants market.

    He said that the company aims to boost sales more in the coming period.

    Hashem explained that the movement of the foreign exchange rate had an impact on the company’s sales.

    Shell is sponsoring the Automech Formula, as it represents a gate to talk with customers and learn more about their needs and interests, he added.

  • AGA to open two vegetable, juice production lines by end of 2019

    AGA to open two vegetable, juice production lines by end of 2019

    Nile Agricultural Ind Co (AGA) is aiming to open two new production lines for frozen vegetables and juices, in order to meet the demand on the company’s products in the global market in conjunction with the trend to open new markets.

    Ahmed El-Ayouty, the chairperson, said that the company is seeking to double its production over the upcoming period and add a new production line to the frozen vegetables’ factory with a capacity of 20,000 tonnes, to take the production to 40,000 tonnes annually.

    The cost of buying and installing the new production line is estimated to be $3.5m. Establishment and opening operations and expected to be completed by the end of 2019. 

    El-Ayouty pointed out that the investments of the second production line for manufacturing juices are estimated to be $1.5m, with a production capacity of 30,000 tonnes annually. A new production line will be allocated for the African market.

    He noted that the company allocates 75% of its production for export and the rest for the local market. The company is planning to increase its share in the local market, specifically, for the products of jam, juices, and vegetables.

    The exports of the company to the African market were estimated to be $2m last year. The company aims to penetrate the Russian market for the first time through participating in “World Food” exhibition held in Moscow.

    The company’s chairperson explained that the company exports its products to 25 markets, with the most recent being the Moroccan market, as well as the markets of Mauritania, Senegal, Mali, France, and Hong Kong. It aims to increase its export to traditional markets in Europe, Africa, and Gulf countries.

    Moreover, he noted that the company is looking for partners in several markets that it seeks to penetrate over the upcoming period, especially, some African countries, such as Cameroon and Kenya, in addition to Germany and Belgium.

    He added that the company is also seeking to develop its products and add new ones, such as frozen vegetables based on the needs of the new export markets, in addition to relying on modern technology and developing energy saving machines, as well as improving packaging operations.

  • 80,000 tonnes exports of MAFA this year

    80,000 tonnes exports of MAFA this year

    The exports of Magrabi Agriculture (MAFA) increased this year by 21% compared to last year. The company is seeking to increase its exports to several markets over the upcoming year, in order to avoid global changes in receiving goods in markets.

    Mahmoud El Shishiny, the commercial director at MAFA, said that the company exported this year about 80,000 tonnes of agricultural produce, most of them and citrus and grapes, to 55 countries.

    He added that the company has been exporting products for 15 years, some of which include pomegranate, oranges, grapes, Barhy dates, pepper, and lettuce.

    El Shishiny explained that the majority of the company’s exports are directed to the European market, and the exportation rate varies each year. The largest percentage always goes to Europe. The company seeks to increase its exports in East Asia through studying each market separately, alongside with its needs and consumption culture.

    The company achieves a 21% increase in its export rates compared to the exports of last year, recording 55,000 tonnes of citrus export compared to 50,000 tonnes last year. The exports of grapes increased to 12,000 tonnes compared to 7,000 tonnes, in addition to Barhy dates.

    The company is adopting a plan to increase Barhy dates exports to Europe over the coming period, as it signed contracts with two marketing consultancy companies to study these markets and rely on non-traditional ways to market products.

    The company exports about 4,000 tonnes of Barhy dates annually, which is a percentage of no more than 15% of the company’s production. The company is seeking to become the largest producer of Barhy dates in Egypt over the few upcoming years.

    El Shishiny said that the company is also seeking to increase its exports in most of the current markets, as well as enter new markets in cooperation with the Export Council of Agricultural Crops, as a means to avoid market changes, whether in terms of prices, or demand, especially, with the increase of production, which may allow the company to enter new markets and increase its export share.

    MAFA owns farms on an area of 9,635 feddans to produce citrus, dates, vegetables, and organic fruits. It also owns strawberry farms, whereby majority of their production is allocated for factories and frozen.

    The company also produces organic juices under the name “MAFA Organic” and most of that production is exported to the countries of North Africa and Europe, which can afford the high cost of organic cultivation.

    The company mainly relies on its production in exportation and sometimes resorts to dealing with other farms to meet the needs of exportation, on the condition that the company supervises the work of these farms through its foreign experts, in order to maintain the main requirements as the company is the one to bear any fines.

    El Shishiny added that the company also aims to increase its exports to the market of East Asia over the upcoming period, especially, in Malaysia, Hong Kong, and China, in addition to Vietnam and Thailand, as two of the most important tourist countries that can accommodate Egyptian exports, as a result of the variety of nationalities there and the increase of the purchasing power in their markets.

    He explained that Philippines is one of the important countries before Egyptian products and receives large amounts of Egyptian exports even though there is no cooperation protocol with it. It relies on intermediates from China, which, in turn, exports Egyptian products. El Shishiny demanded signing a protocol with Philippines to export citrus and grapes. 

  • Metro ticket will increase to EGP 6 starting July 2018: Ministry of Transport

    Metro ticket will increase to EGP 6 starting July 2018: Ministry of Transport

    A senior official at the Ministry of Transportation said that the National Authority for Tunnels (NAT) is seeking to increase the prices of metro tickets starting in July 2018 and that the increase will be calculated by the number of stations travelled.

    The official said, in a statement to Daily News Egypt, that the prices will start from EGP 2 for the first nine stations and then increase by EGP 1 for each nine stations thereafter, up to a maximum of EGP 6 for a single ticket.

    The NAT began its procedures to apply the increase in ticket prices according to the number of stations through the setting up of new machines at metro stations.

    The number of stations in the first line (Marg-Helwan) is 35 stations, while the second line  (Shoubra-Mounib) is 20 stations, and the third line is expected to reach 32 stations, meant to stretch from Cairo International Airport to the Cairo University, with nine stations currently open and four stations expected to open next year.

    The Transportation and Communications Committee of parliament is meeting with Transport Minister Hisham Arafat to discuss the new increases in metro ticket prices.

    MP Mohamed Badawi Desouki said that the Ministry of Transport has not recently submitted to the committee any decisions concerning the increase in the prices of metro tickets, adding that this will be discussed with Arafat on Tuesday at a parliamentary meeting.

    “The new increase will be very cumbersome for citizens, especially at the moment, and I demand that the price of the metro ticket be at a maximum of EGP 3-4 and within a specific time, starting from midnight until five in the morning,” he said.

    Arafat said, before doubling the price of a metro ticket to the current EGP 2, that it can compensate for the losses of the metro.

    Desouki said that the transport committee will ask the government to review the revenues and expenses of the NAT to decide whether to approve the increase or not.

  • ‘Go Bus’ contracts with Mercedes to supply 22 buses next year for EGP 125m 

    ‘Go Bus’ contracts with Mercedes to supply 22 buses next year for EGP 125m 

    “Go Bus” has signed an agreement with Mercedes Benz to buy 22 new buses in 2018 for a cost of EGP 125m.

    Saad Attia, the chairperson of the company, said that the agreement includes the maintenance of 100 buses of the company’s fleet in its workshops.

    He added that Go Bus has over 18 years of experience in the Egyptian market. It provides its services to about three million passengers every year and on 17 roads in Egypt.

    He explained that his company is continuously developing its fleet to serve a larger number of customers, noting that the plan of the company initially aimed to develop the buses every three years; however, the worsening economic situation changed the plan to every five or seven years.

    It is worth noting that bus sales have declined by 43% to record 8,757 buses, compared to 15,246 buses in the first eight months of 2016. The sales of trucks recorded 15,202, a 39% decline compared to the 24,947 trucks sold during the same period last year.

    The demand on locally assembled cars dropped by 33%, reaching 46,872 units since early 2017 until August, compared to 69,997 units in 2016. Imported units declined by 45.2% to reach 37,150 cars, compared to 67,597 cars during the same period last year.

    Overall car sales declined in August by 20% compared to the same period in 2016. The market witnessed 14,102 units sold compared to 17,641 units the previous year, according to the report by the Automotive Marketing Information Council (AMIC).

    The report showed a decline on the demand of passenger cars by 20%, recording sales of 10,311 cars, compared to 12,947 cars in August 2016.

    The sales of buses declined by 25.9%, recording sales of 1,384 buses in August, compared to 1,868 units in the same month of 2016. The sales of trucks declined by 14.8%, where 2,407 trucks were sold, compared to 2,826 trucks.

    AMIC’s report showed a decline in sales since early 2017 until late August by 39%, reaching 83,887 units in 2017, compared to 137,594 in 2016. The sales of passenger cars declined by 38%, recording 59,928, compared to 97,401 cars.

  • APA set to pose international tender to implement dry bulk terminal within one month

    APA set to pose international tender to implement dry bulk terminal within one month

    The Alexandria Port Authority (APA) has completed the preparation of a list of projects expected to be implemented during the next fiscal year (FY).

    APA chairperson admiral Medhat Atia said that the authority has completed preparing the prospectus for implementing the dry bulk terminal that is set to be offered through an international tender within one month.

    He added that the APA is waiting for the approval of the cabinet to implement a multi-purpose garage project that will be self-financed with EGP 300m from the APA budget. He noted that the project is important, as the port receives some 350,000 cars per year but lacks space to store these cars.

    The APA will also sign a contract for a multi-purpose terminal on the 55th berth in the Alexandria port on an area of 500,000 square metres, he pointed out. The lengths of berths amount to 1,800 meters, with a depth of 17 metres. The project will be implemented with the China Harbour Engineering Company (CHEC).

    Atia noted that the authority has responded to the comments of the cabinet regarding the contracts, as it will present the agreement to the cabinet after completing it with the Chinese company, in order to obtain its approval prior to signing the final agreement.

    The multi-purpose terminal project will include several activities, such as container and general cargo handling, and cost about $700m. The cost will be provided by a facilitated Chinese loan that secures 85% of the cost. The Chinese company will provide the remaining 15% in the form of an interest-free loan. The loan is limited to implementing the project, which will remain owned by the APA and operated by a joint company between both parties.

    In a related context, Mohamed El-Dakak, vice president of the APA, told Al Borsa that the APA is preparing to offer a tender for the second phase of the project to deepen the berth in April, adding that the APA will cooperate with El Nasr Company for Buildings and Construction (Egyco) to implement part of the project, while the remaining part will be offered in a public tender.

    The first phase of deepening the berths aimed at reaching depths ranging between 14 to 15 metres.

    El-Dakak noted that the project aims to restore the original depths—not add more—as most of the berths have been exposed to a build-up of clay over the past years.

    He pointed out that the APA is preparing a comprehensive plan for the development of the old berths in the port of Alexandria. The most important feature of the plan is the study of the berths themselves, noting that the plan aims to revive the Alexandria port, which has not been upgraded for the past 40 years, since the establishment of the Daqahleya port that has attracted most modern ships, leaving ships under 80,000 tonnes for the Alexandria port.

    El-Dakak said that some of the old berths will be reallocated for other activities.

    He added that Egyco has completed 20% of berth 85, which is to be build as a berth for the trade of general goods, at a total cost of EGP 500m. He expected the project will be completed within 18 months, noting that it will raise the capacity of the port by 5 million tonnes.

    Moreover, El-Dakak said that the APA has almost reached a final agreement with Medtab—of the Egyptian General Petroleum Corporation (EGPC)—to implement the liquid bulk terminal, which will increase the port’s capacity of handling liquid bulk by 3 million tonnes.

    He added that the authority is preparing to inaugurate a number of projects linking the port to highways, including the road to the Daqahleya port. The first phase of this project will be inaugurated to link the International Coast Road to Umm Zaghio Road. The second phase will reach the Daqahleya port and is expected to be opened in November. This is in addition to implementing the Al Wardian bridge that aims to move the traffic of trucks away from Agamy Road. El-Dakak pointed out that all these projects are financed by the APA itself.

    Decision No. 800 for the year 2016 by the Minister of Transportation, which organises the maritime transport activities, came as a necessity due to the recent economic changes and the flotation of the pound, he asserted, noting that the trading volume of the Alexandria Port Authority was not affected by the resolution, compared to the indicators during the same period last year.

    Additionally, El-Dakak said that the flotation of the pound raised the revenues of the APA in the current fiscal year, especially its dollar resources. He noted that revenues have so far exceeded EGP 3bn.

    The operational capacity of the container berth in Alexandria port reached 70%, he pointed out, while the storage capacity reached 100%; therefore, several spaces to increase the capacity will be allocated through re-planning.

    He explained that the delay in the implementation of the non-clean bulk project is due to the awarding company retaining the monopoly of trading non-clean bulk, adding that the prospectus was not clear on that matter.

    He stressed that the company has reached a consensus formulation that is currently being drafted in order to reach a compromise to implement the project. The draft will be reviewed soon so that the project can be implemented as soon as possible.

    Furthermore, the APA is working to establish a terminal handling company. El-Dakak said that the company will include international entities working in that field. This project’s feasibility studies will be completed in May.

    El-Dakak added that the practice of any activity inside the port of Alexandria is an inherent right of the port authorities, but it gives the companies the right to practice these activities on its behalf. He noted that some companies violate the conditions, such as shipping agencies that impose excessive fees. He urged for the need to impose supervision over the public companies in the port in order to create a balance and prevent any potential violations.

    The new company that will be established under the APA will aim to balance the situation and prevent companies from imposing excessive fees, he stated.

    He noted that the APA will establish a company to manage the container terminal, adding that the APA is also studying the establishment of a logistics company. The APA is cooperating with CIB Bank to prepare studies for the companies’ establishment.

  • Transportation Ministry begins two road and railway development projects in July

    Transportation Ministry begins two road and railway development projects in July

    The Ministry of Transportation is set to begin the national project for the rehabilitation of the Egyptian National Railways (ENR), as per the directives of President Abdel Fatah Al-Sisi.

    The Ministry of Investment and International Cooperation is currently negotiating with international financial institutions to raise EGP 5bn in order to finance the development of 1,200 km of the railway.

    Minister of Transportation Hesham Arafat said that his ministry is set to increase the maintenance fleet of the Egyptian National Railways, with investments of €4m. He noted that the capabilities of ENR subsidiaries are not sufficient to implement maintenance tasks, as they are now only capable of operating on 10 km per month.

    He explained that the ministry is currently enacting procedures to separate the transportation of goods and assign that activity to a joint stock company in cooperation with the private sector.

    The ENR is now also upgrading the hangars for goods trains with a cost of EGP 150m.

    Moreover, the authority is upgrading its mobile units fleet, where it is maintaining and improving 20 units per month, with a total of 650 units.

    The authority is working to sign a contract to buy six diesel trains at a cost of €126m, next to negotiating with international companies to provide 700 low-class carriages with 50% of its components being local. The ENR is also working on upgrading 60 out of 10,321 low-class carriages per month, as well as upgrading 60 middle-class carriages out of 1,223, along with 40 out of 650 AC class carriages. The authority also aims to develop 50 train stations per year with an allocated cost of EGP 150m.

    Meanwhile, the government is implementing the third phase of the national roadway project in July with investments amounting to EGP 9.5bn, financed by the state budget. The phase totals 1,154 km and will complement the national plan to increase the road network by 5,000 km in order to serve expected development projects.

    The phase includes developing the Cairo-Assiut Western Desert Road, which extends over 400 km and will cost EGP 4bn. The plan also includes adding a lane to the road linking Sohag and Assiut to the Upper Egypt-Red Sea roads, extending over 180 km. In addition, the plan will also add one lane to the 213 km Red Sea-Safaga-Marsa Alam Road, as well as link the Suez Road to the Ahmed Hamdy Tunnel, which will extend over 24 km, and add a lane to the 6th of October City-Wahat Road over 300 km.

    Furthermore, the plan includes the completion of the service road on the Cairo-Suez Highway, which extends over 37 km between the Regional Ring Road and the Ring Road.

    The General Authority For Roads, Bridges, & Land Transport (GARBLT) aims to complete a number of bridges in the coming year, including the Benha Bridge, which costs EGP 450m, and the Khatatba Axis at a cost of EGP 800m.

    The authority is also set to complete the Gerga Corridor at a cost of EGP 500m, the Tama Corridor at a cost of EGP 720m, and the Kalapsha Corridor at a cost of EGP 642m.

    In addition, the authority will establish a number of new corridors in the coming year’s state budget, including the Fashin Corridor at a cost of EGP 1bn, the Samalout Corridor at a cost of EGP 1bn, the Dirout Corridor at a cost of EGP 1.2bn, and the Qos Corridor at a cost of EGP 1bn.

    GARBLT is now implementing a project to add one lane along 140 km of the Sohag-Qena Western Desert Road at a cost of EGP 350m.

    It is also developing the Cairo-Alexandria Agricultural Road at a cost of EGP 435m, along with over 73 km of the Benha-Aga-Mansoura Road at a cost of EGP 305m, as well as the Ring Road, extending over 100 km, at a cost of EGP 1bn.

  • Transportation Committee calls Al Watania company to provide a clear mechanism for vehicles fees

    Transportation Committee calls Al Watania company to provide a clear mechanism for vehicles fees

    Transportation Committee at the House of Representatives called Al Watania company affiliated to the national service system at the armed forces to clarify mechanisms of duties imposed on roads and to send them to the committee to check it.
    Parliamentary sources attended the meeting on Monday and was attended by General Mamdouh Shaheen, Assistant Secretary of Defense Minister for constitutional and legislative affair, said that the Committee has received numerous complaints about fees imposed by the company on Roads .

    Complaints stated that the company impose fees on loads types not weights
    A parliament member said that they called the company to put a list includes fees according to weight and vehicles types on each gate, to guarantee transparency and to ease the shipping and transportation sector’s tension.
    He added that officials of the National Company for Roads recorded all observations of Representatives and promised to respond to them as soon as possible.
    The Company increased transportation passing fees on Cairo- Alexandria desert Road to EGP 10 on passenger cars, EGP 5 on small pickup trucks, EGP 15 on big pickup trucks, EGP 10 on Micro buses, and EGP 20 for buses.
    General Authority for Roads, Bridges & Land Transport (GARBLT) called Alwatania Company to develop a unified mechanism for fees imposed on roads.
    An official source said that the armed forces receive the roads after the authority completes them within the national project for roads to set its budgets and impose charges. .
    He added that the authority relies on its own road maintenance fees imposed on roads and balances.
    The official pointed out that the authority prepares a study to increase its roads fees and increase balances to cover 20% of the authority’s budget that exceeds EGP 17bn.
    He mentioned that the authority hasn’t increased fees on roads for more than 25 years, which impact the authority’s revenues.
    He added that the authority’s revenues from these fees are not more than EGP 1bn annually.

  • Cairo Metro addresses cabinet, again, to increase ticket price to EGP 2

    Cairo Metro addresses cabinet, again, to increase ticket price to EGP 2

    The Egyptian Company for Metro Management & Operation is awaiting the cabinet’s approval to increase ticket prices to EGP 2.

    An official source at the company said that a new note was prepared to be presented to the cabinet.

    He added that the company was planning to maintain a price of EGP 1, while improving the first and second two carriages in the train and offering passengers access to these at a price of EGP 3-5.

    The source said the company signed an agreement to import new ticket machines that will be supplied mid-2017. The new machines will calculate fares according to the number of stops.

    Meanwhile, parliament’s Transportation Committee plans to summon heads of the Egyptian Company for Metro Management & Operation and the Egyptian National Railways to discuss their plans for development.

    Member of parliament and committee member Hussein Khater said the Ministry of Transportation did not notify the parliament regarding any upcoming increases in both of the companies’ ticket prices.

    He added that the committee has already asked for all information on operations and revenues of both companies, but has not yet received them.

    He stipulated approving any increases to the need for maintenance and development, as well as revenues and losses.

    The MP said that ENR suffered losses amounting to EGP 39bn, including EGP 22bn owed to the National Investment Bank.

  • Hamburg authority expresses interest in managing Egyptian ports: Ministerial consultant

    Hamburg authority expresses interest in managing Egyptian ports: Ministerial consultant

    Chairman of the Hamburg Port Authority (HPA) Jens Meier will visit Egyptian ports next month to discuss possible cooperation between Egypt and Germany, according to a Ministry of Transportation consultant.

    The head of the HPA expressed his desire to participate in managing and improving service levels at Egyptian ports, according to Mahmoud Allam, the consultant to the minister of transport for international cooperation.

    The ministry has prepared a list of projects to present to investors in the coming period, as well as another list of urgent projects at a cost of EGP 200bn, which will be completed within four years. These projects were presented to many foreign investors, but the ministry has not yet received actual offers for their implementation, Allam told Daily News Egypt.

    The consultant said the ministry is still in negotiations with China Harbour Engineering Company Ltd. (CHEC) to implement a multi-purpose quay for the port of Alexandria, according to an agreement that was signed at the Egypt Economic Development Conference in March 2015.

    The ministry is also still negotiating with PSA Singapore regarding their participation in managing and operating the port of Alexandria, according to a previously-signed agreement. The ministry is currently considering the possibility of expanding to include all Egyptian ports after evaluating the Port of Alexandria’s experience, Allam said.

    The PSA is interested in Egyptian ports and is scheduled to set a vision to develop Egyptian ports and put it on global competition map, he said.

    Cooperation with the PSA aims to reduce spending on Egyptian port management, especially the port of Alexandria, which could be managed by just 500 workers, whereas the number of workers there currently is more than 4,000, according to Allam.

    During their recent visit to Egypt, PSA officials visited the Suez Canal Authority to discuss cooperation in the six ports added to the jurisdiction of the economic commission for the Suez Canal Area. These are the Ain Sokhna Port, El Tur Port, Adabiya Port, East Port Said Port, West Port Said Port, and Al-Arish Port.

    This is amid the Egyptian state’s efforts to turn the Gulf of Suez into a regional and international transport and logistics hub, through which the state can leverage the transit fees gathered from ships passing through the Suez Canal.

    The launch of the New Suez Canal in August 2015 succeeded in cutting down the waiting time for ships passing through it by approximately from between eight and 11 hours to just three, in a bid to attract more ships to pass through the canal. However, some experts have called into question the viability of the larger project, in light of the declining in international growth rates.