Egyptian National Railways (ENR) has invited firms to bid by 12 May for the contract to undertake a study for the establishment of an independent freight rail company.

According to a source with knowledge of the plan, the contract will cover a review of existing rail regulations in Egypt and develop a business plan for the private company. In addition, the study will be looking at factors like track access and related fees.

“Rail accounts for only 1 per cent of the country’s total freight sector,” the source tells MEED, citing that trucks dominate the sector even for the transport of bulk, cement and ceramic cargo, which significantly contributes to Egypt’s road congestion and safety issues. “There is a big opportunity for freight rail to expand in future,” the source says.

Egypt recently updated an old law to allow private sector companies to invest and operate in the rail industry.

According to Egypt’s Transport Minister Hesham Arafaat, the updated law “will allow private companies to invest in the construction of new lines as well as other activities relating to financing and operating existing lines”.

The old law was enacted in 1980 to establish and define the role of ENR as the owner and operator of the country’s mainline railway assets.

Egypt has been undertaking projects to modernise its existing mainline railway, which, at 9,600 kilometres, is the longest of its kind in the Middle East and Africa region.