Investment in Egypt’s Transport Sector: Opportunities and Challenges

EPC | 01 Mar 2015

The transport sector is one of the pivotal elements of development in Egypt. The advancement of a state is measured by the extent of attention it pays to means of transport. Transport services are closely linked to total development of a state in its broad concept because it is one of the key foundations of the state’s infrastructure. The transport sector is the channel through which requirements of economic, construction and social development flows from areas of production to areas of consumption.

Egypt’s transport sector enjoys several points of strength such as e-management in ports, especially Alexandria Port, the shift by Egyptian Port Authority from the role of an operator to the role of a regulator, the EU’s support to Egypt’s transport sector of about €90m.

Egypt’s transport sector is currently facing a number of challenges, notably, Law No. 1 for 1998 permitting the private sector to conduct most maritime transport activities, external challenges such the increasing global growth rates and the rising cost of energy, as well as, internal difficulties related to the pace of developing ports to meet requirements of development plans and create new job opportunities for youths.

Railways in the country has been suffering from negligence for long despite its extreme importance. It carries 800 million passengers annually and employs 71,000 people. The deteriorating transit system led to the failure of development in many promising areas. Cairo cannot overcome this hurdle without improving the transit system in the country to meet requirements of development.

Finally, the paper introduces three alternative trajectories to maximize opportunities, minimize challenges, in addition, to a number of recommendations to overcome hardships in this sector.

Image Source: Reuters Pictures

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