Egyptian National Railways (ENR) has successfully concluded financing arrangements with the European Bank for Reconstruction and Development (EBRD) and a locomotive supply and engineering contract with US-based GEC. The deals will enable ENR to modernise its network, expand capacity, including in the freight carrying sector, and offer more efficient services.
The €100M three-year loan from the EBRD has been secured on highly favourable terms, with interest of just 1% per annum, payable over 11-years, and with a three-year grace period included. It is to be used to finance ENR’s acquisition of 100 multi-use locomotives.
These locos will be manufactured and supplied by GEC, with the first 25 units scheduled to be phased into operation in 2018. They are just one facet of a US$575M deal agreed between ENR and GEC, in which the latter will provide
15 years of engineering support, maintenance, spare part deliveries and inventory management to the state-controlled railroad. In addition, GEC will upgrade 81 locomotives that ENR acquired in 2008, and will offer training to the company’s engineering staff.
Years of neglect and under-investment in Egypt’s rail network have taken their toll, but there is now a drive on the part of the Egyptian Government to change the situation. ENR has a target to move 25 Mtpa of cargo over its network by 2022. Currently, an estimated 6 Mtpa of freight is hauled by rail.
Earlier this year, Maersk Line used rail to move 120 containers between Damietta and Sokhna Ports, the first time the carrier had ever used rail in Egypt, which the National Ports Authority is now trying to encourage.
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This complete item is approximately 300 words in length, and appeared in the August 2017 issue of WorldCargo News, on page 13. To access this issue download the PDF here.
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