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Egypt secures €145 million loan from AfDB for upgrade of its national rail line

April 6, 2021596 views0 comments

 

  • Funding to be used to enhance network capacity and operational safety of national rail line
  • Passenger traffic expected by increase by 15%, 10% for freight by 2029

 

Wale Ameen
Online Editor

 

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Egypt has secured a loan of €145 million from the African Development Bank (AfDB) for the upgrade of the country’s rail system under the Egypt National Railways Modernization Project (ENRMP).

The loan was recently approved by the board of the African Development Bank and is expected to be used to increase the network capacity and enhance the operational safety of the national rail line.

Speaking on the project, Egypt’s Minister of International Cooperation, Dr. Rania A. Al-Mashat said, “Safe, accessible, convenient and green transport systems will be crucial to achieving sustainable development. The improvement and expansion of Egypt’s rail system through the ENRMP allows for active mobility and enables the urban and rural development through an inter-modal linked system. Technology and innovation, and a robust commitment to public transport will all be vital components of building back better.”

On his part, AfDB’s Deputy Director General for the North African region, Malinne Blomberg said, “The newly approved project will enhance the multimodal transportation environment in Egypt, and the efficient movement of people, services and goods.”
“This operation is fully aligned with the Bank’s strategy for interventions in Egypt, contributing to sustained and inclusive economic growth, and more specifically, developing infrastructure that supports expansion of the private sector and job creation,” she added.
With rail transport playing a crucial role in Egypt’s economy and its competitiveness in the continent, the government has invested significantly in upgrading the country’s railway infrastructure with efforts going into renewals and modernization of its signals equipment as well as new rolling stock purchase.
Report has it that under the ENRMP a state-of-the-art, cost effective train protection system will be installed on a stretch of 950 km of train line along the busy routes connecting Alexandria in the north to Negh Hammadi in the south, and Port Said in the east.

With the loan coming into effect, passenger traffic on the country’s rail line is expected to increase to 15% while freight traffic is expected to increase by 10% by 2029.

Currently, the country has about 8% of passenger traffic and 6% of freight traffic by rail. The planned upgrades are expected to benefit low-income Egyptians, about 40% of the population, who rely on trains as an affordable mode of transport.  Increasing train freight is projected to have a positive impact on greenhouse gas emissions.

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