Can privatization save Egypt’s railways?
The Egyptian government is seeking partnerships with private and international companies to improve and manage the country’s dilapidated railway network.
CAIRO — After three train accidents in Egypt within one month left dozens of people wounded or dead, Egyptian Transportation Minister Kamel al-Wazir said in a press release April 21 that there are plans for a number of new trains on Egypt’s railways to be managed by international companies. The plan, he added, aims to provide better services and bring modern expertise to Egypt.
Wazir explained that a foreign or multinational company will manage trains, including six that will be purchased from the Spanish company Talgo. The operation of 200 sleeper cars will be assigned to another foreign company yet to be unveiled.
On April 27, Egyptian President Abdel Fattah al-Sisi met with CEO of the Korean company Hyundai Rotem Lee Yong-bae accompanied by Wazir and Prime Minister Mostafa Madbouly. The presidency said in a press statement, “The meeting discussed joint cooperation with Hyundai Rotem for localizing the train industry, including the signal and communication systems as well as command and control equipment.”
During the meeting, Yong-bae presented the projects that his company is to carry out in Egypt. They include manufacturing subway cars, signal systems and control and command equipment and railway engineering work.
