Transport Committee
A review of river transport
The Transport Committee held a meeting on March 26, with guest speaker Karim El-Kheir, chairman of the River Transport Authority, who gave a presentation entitled “Ministry of Transport plans to activate river transportation and how the private sector can contribute.”
El-Kheir began with an overview of the advantages of river transportation in terms of being able to move heavy or large freight, and the cost efficiency of operation, maintenance and infrastructure. He outlined ongoing projects aimed at improving the efficiency of navigable routes by connecting seaports with the river network, constructing and developing river ports, and increasing container traffic. Improved river transport, it is hoped, will boost the amount of commodities, such as wheat, timber and food, transported by river.
Ongoing river transport projects include elongating the Small Malah Lock, building the 100-kilometer-long Nubaria Canal, the New Bolin Lock in addition to a navigable connection between the Behari Canal and Rosetta Branch.
El-Kheir discussed investment opportunities in river transport. These include ports in Alexandria, Cairo, Aswan and Qena. He called on investors to upgrade, operate and equip river ports on the River Nile, pointing out the need for companies to transport bulk cargo, containers and non-traditional cargo with special dimensions on the river, as well as to operate coastal barges to reach Dekheila Port and Port Said. Another opportunity, mentioned in passing, would be to construct and operate a distribution center in Upper Egypt.
He closed his presentation by stating that river ports can play a role facilitating land transport by connecting road and railway points.
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Traffic problem looms over economy View Presentation
The Transport Committee held a meeting on February 20 with guest speaker General Mohamed Mansour, head of the General Directorate for Cairo Traffic and assistant minister of interior on the subject of “The traffic problem in Egypt.”
Mansour began his presentation by emphasizing the importance of solving Egypt’s traffic problem, and how traffic poses a threat not only to tourism and the economy, but also to people’s safety. He went on to explain the effects on tourism and mobility, as well as wasted fuel and time. The problem is particulrly acute in Cairo, where he estimates that without a solution by 2008, traffic will come to a complete standstill.
About six years ago, the traffic and tourism committees of the Egyptian Automobile Association conducted research on the capital’s traffic problem and submitted a study with 26 recommendations for improving public transportation, Mansour said. The study called for all public transportation fees to be paid to one authority yearly, which will reduce monthly errand runs. It also recommended decentralizing Cairo’s public service offices by relocating them from downtown to outlying areas where there is more parking. Mansour regretted that to date, the study’s recommendations have not been acted upon.
He went on to suggest formation of a joint committee from different sectors, such as tourism, hotels and public transportation, as well as the government, to work under one umbrella to recommend and implement solutions to the traffic problem. He concluded by pointing out the enormity of the traffic problem, which – unless solved – will have a great impact on the national economy.
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New highways and road initiatives
The Transport Committee held a meeting on January 9 with guest speaker Tarek El Attar, chairman of the General Authority for Roads, Bridges & Land Transport (GARBLT), for a talk called “GARBLT’s current and future plans to improve people’s mobility and safety within its network of roadways.”
El Attar began by giving a brief explanation of GARBLT’s mission to implement and sustain roadway safety measures, focus on completing existing projects, plan for the construction of new highways and bridges, and create new investment opportunities. He went on to describe GARBLT’s major projects and initiatives.
One of the authority’s major priorities is highway construction, a crucial element in facilitating domestic and international trade. El Attar went on to explain four of these projects. The first is a desert highway between Assiut and Cairo. Another is a highway between Sohag and the Red Sea, which will connect the coast with the Nile Valley to allow Red Sea tourist traffic access to antiquities in the Nile Valley. The third major roadway project will be an upgrade to the Cairo-Alexandria Desert Road. Moreover, the Northern Coast International Road from Gaza to Libya will be upgraded.
The private sector is playing a growing role in public projects. GARBLT is actively seeking private funds, especially for roadways. Through public-private partnerships (PPPs), the authority designs the roads but the risks and rewards are shared with the private sector. The main risks are the initial investment and road maintenance, while the rewards come from revenue generated by tolls and road advertising, for instance. GARBLT’s initial PPP maintenance project is being designed with World Bank funding and advice.
GARBLT is also exploring initiatives to reduce costs, such as the use of slag – a steel byproduct abundant in Egypt – for road construction. Other ongoing projects include the renumbering of the highway system to make it easier to follow, and re-examining roadway building codes to ensure safety and quality.
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Port Said East Port: Engine for Egypt’s economic growth
On November 15, AmCham hosted the Transport Committee for a meeting on Port Said East Port’s role in Egypt’s economic growth. Guest speaker Admiral Shireen Hassan, chairman of the board of the Port Said Port Authority, began by explaining that the vision of his authority is to create a world-class port and distribution center on the main trade route between Europe and Asia. According to Hassan, Egypt should use its geo-strategic location to establish itself as a center for world trade.
Port Said East Port is ideally located at the mouth of the Suez Canal so ships crossing the canal do not need to deviate from their course to stop there. This is crucial, as it provides an easy point of departure for Egyptian goods headed to major markets in Europe, the Persian Gulf and the Far East. It also allows easy access to Egypt for foreign goods. The port is connected to the national road, rail and airport networks. “The location of the port is an exceptional opportunity for international investors, especially with the free zones area that is being developed around the port,” Hassan said.
He went on to explain the need for the port. “Trade between Asia and Europe witnessed a great revolution when containers were introduced to the market... with the steady continuous expansion of this trade, the producers and consumers on both sides needed desperately a mega hub port with a mega logistic center to facilitate the trade dynamics.” Port Said East Port aspires to be one of the largest business hubs and distribution centers for world trade. “We offer our customers world-class infrastructure, value added services and incentives... we believe that no other place in the world gives such tremendous advantages to investors,” he exclaimed.
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