|
|
Home > Business/Finance > Diversified Services > Shipping & Logistics
Egypt Freight Transport Report Q3 2007
|
|
Egypt continues to struggle with a very poor rail safety record, with another accident in October last year
(a train hit a minibus at a crossing 10km south of Cairo, killing seven people). This followed the major
disaster on August 21, when one train ploughed into the back of another in Qalyoub, killing 56 people
and injuring 150. The August accident was the worst on the country’s antiquated rail system since 2002.
The government sought to demonstrate that it was taking the problem seriously by sacking the head of the
state rail authority and supporting an inquiry, which highlighted major human, technical and
administrative failures. There have since been some advances in assessing an anti-collision device (ACD)
produced by Indian rail suppliers. Since he took office in December 2005, transportation minister
Mohammed Mansour has complained that that the railway sector is facing problems and suffering from a
lack of funding. ‘The sector needs immediate financial support’, he said.
After the August accident the government approved an immediate allocation of US$860mn to develop the
rail infrastructure, plus another US$600mn in loans to the sector. In our latest Egypt Freight Transport
Report, BMI concludes that rail freight traffic will rise by an annual average of 3.3% in the 2007-2011
forecast period, lagging behind the general rate of economic growth, which we project at 5.1%.
Various factors support this prediction. While the extra investment is long overdue to improve safety
levels, we do not expect capital expenditure to be enough to transform the railways as a transport mode.
State-owned Egyptian National Railways needs major upgrade and modernisation work. Rail freight
traffic growth will lag behind the average for the industry as a whole, which we put at 5.2% during the
next five years. Rail freight growth will also be slower than road haulage at an annual average of 4.7%,
maritime freight at an average of 6.5% and air cargo at an average of 7.2%.
BMI is not forecasting very strong growth in domestic freight transport sectors between 2007 and 2011.
This is partly because foreign carriers account for much of the expected growth in foreign trade.
Moreover, while the government has declared its intentions to improve all aspects of the transport
infrastructure, these plans are long-term and the benefits are unlikely to help the freight transport industry
until well into the forecast period. As a result, the industry will have to continue to make use of the
existing facilities for several years.
Egypt scores a total of 35 (out of a theoretical maximum of 70) in our freight transport business
environment ranking, which places it below the Africa and Middle East regional average of 39.1. The
country’s strong points are economic and political risk and the competitive environment, at least with
reference to its peers. Areas for improvement include infrastructure, freight growth, transport intensity (a
measure of the dynamism of foreign trade) and the regulatory environment.
The total value of transport and communications GDP will rise to US$14.3bn in nominal terms by 2011,
representing 8.8% of Egypt’s GDP. The transport and communications sector employed 1.22mn people,
or 6.4% of the labour force, last year. We see the figure rising to 1.34mn people by 2011, although it will
remain stable as a proportion of the total work force at 6.4%.
|
Similar Products
• GE Capital Rail Services
Published Jul 2008 by SGA Lists
• Swift Transportation Co., Inc.
Published Jul 2008 by SGA Lists
• Landstar System Inc.
Published Jul 2008 by SGA Lists
• Pacer International Inc.
Published Jul 2008 by SGA Lists
• GATX Corporation
Published Jul 2008 by SGA Lists
• Hub Group Inc.
Published Jul 2008 by SGA Lists
• Werner Enterprises Inc.
Published Jul 2008 by SGA Lists
• Schneider National, Inc.
Published Jul 2008 by SGA Lists
• DHL Holdings (USA), Inc.
Published Jul 2008 by SGA Lists
• Teleflex Incorporated
Published Jul 2008 by SGA Lists
|
|
|
|
0 items
