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Introduction
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Passenger land transport
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Land transportation of goods
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Road safety
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Nile River transport and upgrading plans
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Achieving strategic transport integration on the national level
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Methods of financing transport projects and services
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Advancing the legal framework of land transport of passengers and goods as well
as Nile River transport
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Conclusion
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Introduction
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The NDP's 'Present and Future of the Transport Sector' paper has given priority
to studies relating to passenger and goods land transport, road safety and Nile
River transport.
Other relevant subjects include the following:
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Achieving strategic transport integration on the national level.
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Methods of financing transport projects and services.
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Advancing the legal framework of passengers and goods land transport as well as
Nile River transport.
The passenger land transport paper focuses on present conditions of this kind
of transport on the national level, the agencies which are responsible for it,
the problems that face it and the suggestions by the members of the party to
kindle transport services in this regard. The suggestions include: licencing
the management a passenger land transport projects and considering the
government the only body, which grants this license according to certain
regulations. The proposals also included the financial restructuring of
government-owned utilities that offer passenger land transport services with
the aim of meeting increasing demand over this kind of service.
The goods land transportation paper focuses on means of invigorating the
institutional structure of this service depending on a study of the present
conditions of this kind of transport. The paper also focuses on the vision of
the NDP about ways of stepping up goods land transport in a way that responds
positively to internal trade needs. The road safety paper aims at rousing
safety standards for citizens, road and transport users. The objective here is
to reduce road accidents and their negative impacts and protect citizens' lives
in the light of the principles of the NDP, which stress citizens' right for a
secure life.
The Nile River transportation paper aims to invigorate this service technically
in a way that makes it up to a growing goods' and passengers' movement in the
light of government plans in this regard. This stems from the belief that the
modernization of Nile River transport achieves the national goal of reducing
the pressure on demand for land transport.
The paper on strategic transport integration on the national level focuses on
the vision of both the party and the government in this regard and the
mechanisms according to which all kinds of transport operate. It aims at
forging more coordination among these types of transport with the aim of
realizing national goals in this regard.
Taking into account that transport projects are costly, the NDP has dedicated a
whole paper focusing on ways of financing these projects.
The paper focuses on problems of inadequate funding, which is one of the
obstacles on the way of good transport. The paper also tackles the present
situation of the funding of transport projects and their management. The vision
of the NDP and the government about how the necessary funding for transport
projects can be attained and management is also included in the paper.
According to the studies the party conducted in cooperation with the
government, there is a need for freshening the legal framework regulating
transport either for passengers or goods.
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Passengers land transport
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| Public transport |
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Prelude
Because public land transport is essential particularly between cities the NDP
has given it priority for the role it plays in the life of citizens.
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1- Passenger land transport and the agencies responsible for it
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Passengers are transferred by land through a network of roads and railways.
Around 60 million passengers are transferred nationwide a day by land. Land
transport utilities that belong to the government account for 17 per cent of
the overall land transport utilities in Egypt. At the same time, the private
sector contributes to this in the form of buses, private cars, taxis and
microbuses. Privates sector contribution account for 83 per cent.
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2- Inter-governorate passenger transport and the agencies responsible for it
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Government bodies
Government bodies contribute to carrying around 48 per cent of all passengers
between the governorates as follows:
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Railways
The Egyptian National Railway Authority transfers around 43 per cent of
passengers between the governorates.
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Bus companies for Passenger transport
Four bus companies, which belong to the Public Enterprise Sector, transfer
passengers between the governorates. Besides, the Arab Federation Company for
land Transport transfers around 5 per cent of passengers between governorates.
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The Private sector
The private sector transfers around 52 per cent of the passengers between the
governorates as follows:
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Taxis
Taxis transfer an increasing number of passengers between the governorates
carrying around 40 per cent of the passengers at the present moment.
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Passenger transport cooperatives Inside each governorate there is a cooperative
for the transport of passengers. Some of them transfer passengers between the
governorates. Some other companies take care of the terminals and services.
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Companies and factories
A big number of companies and factories take care of transferring their
workers. Cooperatives, companies and factories transfer around 12 per cent of
the passengers between the governorates.
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3- Passenger transport inside governorates and the agencies responsible for it
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Passenger transport inside governorates varies from one governorate to another
in the light of the size of the governorate and population density. The
presence of important institutions for citizens is also a determining factor.
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Transport inside Greater Cairo
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Government bodies
Government bodies transfer around 46 per cent of passengers inside governorates
as follows:
The General Authority for Transport and the Greater Cairo Bus The General
Authority for Transport and the Greater Cairo Buss Company contribute to giving
transport services to around 30 per cent of passengers.
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Underground
The Underground carries around 16 per cent of the passengers through its first
and second lines in Greater Cairo.
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Private sector
Private sector transport, buses and microbuses, transfers around 37 per cent of
passengers in Greater Cairo.
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Private cars
Private cars give transport to around 17 per cent of passengers.
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Transport inside Alexandria and its suburbs
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Government transport
The General Authority for Transport and the Abu Qir Rail, give carry around 15
per cent of the passengers inside Alexandria. The private sector gives
transport services to around 85 per cent of the passengers inside Alexandria.
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Transport inside governorates and the bodies responsible for it Government
bodies
Local transport offers services inside governorates to the tune of I per cent
only.
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Private sector:
Various types of private transport carry around 84 per cent of passengers
inside governorates. At the same time, taxis and buses usually exist inside the
capitals of governorates.
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4- Public transport connecting new urban communities and cities
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The government and the private sector have done their utmost to connect new
urban communities with the cities. The government on its part clinched deals
with a specific time limit with the private sector for the later to offer
transport services in new urban communities, such as el-Shorouk, Badr, 10th
Ramadan, el-Obour, 6th October, New Cairo, May and el-Sheikh Zayed. Public
Enterprise Sector companies also present the same services in new urban
communities like Assuit, Beni Suef and Borg el-Arab. Noteworthy, the
aforementioned services do not represent a real connection between the new
urban communities and the rest of Egypt. Hence the need for a modern way to
make the required link between the new urban communities and the other Egyptian
cities.
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Transport is in need of improvement for it to be safe and meet demand on the
national level. Private sector-run transport is not organized.
Neither is it managed safely in the absence of some rules to regulate its work.
This can be demonstrated through the way passengers are treated in this type of
transport let alone its accidents.
Following are the challenges facing passenger transport generally on the
national level
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Transport vehicles are getting old. That makes it difficult for repair
processes to happen for these vehicles to keep going.
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A budget deficit inside the organizations running this transport in addition to
a dearth of qualified personnel renders funding structures of these
ineffective.
Private sector and disorganized private transportation An increasing presence
of disorganized transport has created a number of negative effects including:
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A continual increase in the number of Service Cars that operate in a
disorganized unsafe and technically faulty manner.
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Traffic jams inside cities and governorates have become a frequent occurrence.
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The NDP and the government know for certain the importance of putting passenger
land transport into order. One of the ways is to restructure land transport to
define government and private sector responsibilities inside governorates. The
following criterion should be taken into account:
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The Ministry of Transport will be responsible for sketching out general
policies.
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The Ministry of Transport will be responsible for granting licences authorizing
private bodies to be involved in passenger transport. This license should be
linked to driving licences or commercial activity licences.
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Licences would be granted in the light of certain technical regulations and
conditions. In this the Ministry of Transport, the Ministry of the Interior and
the Ministry of Local Development would cooperage with each other. One of the
conditions should be that passenger transport licences be granted only through
companies, cooperatives or any other legally established body for this end. One
other of the conditions would be for those who involve in passenger transport
to be given a grace period to be able to polish the services they offer.
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Restructuring the government bodies that offer passenger transport services
financially in a way that heralds a financial balance and financial
self-reliance.
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Encouraging the General Authority for Transport in Cairo and Alexandria and
transport companies to establish joint transport companies together with the
private sector to transfer passengers in certain provinces. Other players
should not be allowed to present transport services in these areas.
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Reconsidering the laws regulating passenger land transport, improving them and
framing new ones. Law No 55 for the year 1975 must be amended for it to cope
with the party's and the government's vision for improving this service.
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Upgrading taxi service
The condition of taxis in cities particularly the capitals of governorates is
unbecoming of these places any more. This service is no longer up to the
increasing flow of tourists, who include businessmen as well. Thorough studies
about means of improving taxi services have been conducted. The NDP would work
in tandem with the government to put the results of these studies into action
in order to spruce up taxis in Cairo, Alexandria and the other governorates.
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Passenger land transport
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| Upgrading railway and the underground
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Prelude
Railways received increasing attention from the various governments of Egypt
over the various phases for the important role they played at times of peace
and war. The government has been keen on modernizing the railways providing the
necessary investments. This attention started since the year 1981 with the aim
of making railways to cope up with modern operational methods. This opened the
way for a real breakthrough in railway transportation in Egypt.
The underground is seen as one of the biggest projects that have taken place in
Egypt. Egypt is the first African and Middle Eastern country to have an
underground. The underground is actually the first stone in the project for
modernizing transport in Egypt not only at the present time but also in the
future as the fruits of the underground would be reaped by future generations
as well.
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The Egyptian Railway Authority is a body that offers transport services under
the supervision of the government. One of the mandates of the authority is to
operate and maintain the underground through the Metro Operation Authority.
Though the authority is financially, yet this independence is not complete as
its revenues are not enough for the job. At the same time, the authority is
overloaded with debts.
Problems that face the Egyptian Railway Authority and the Metro Operation
Authority and solutions
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The Railway Authority
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A low standard operation affects safety standards negatively due to the fact
that the authority faces many difficulties including:
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Excessive dependence on importation of locomotives and other operation
equipment makes the supply of these things vulnerable to fluctuation due to
unstable reserves of foreign currency, let alone the continual increase in the
price of these imported articles.
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The need for big annual investments for the maintenance of the railway network.
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An absent concept of comprehensive maintenance creates problems. The authority
should adopt the concept of preventive maintenance.
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Budget deficits happen due to the following reasons:
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Having a social dimension, rail fares remained stable for long periods of time
while the expenditure of the authority was spiralling up year after another. At
the same time the cost of transport of strategic goods like supply commodities
and petroleum remained low.
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Some railway lines, such as those, which served national projects, proved not
lucrative. At the same time the authority shouldered the expenditure relating
to province trains which account for around 62 per cent of operation costs
while revenues from them account for 20 per cent only of overall revenues.
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The presence of too many workers at the authority. In March 2002 the number of
the workers there reached 69563. At the same time the monthly payments these
workers get swallow around 63 per cent of the revenues of the authority.
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There is a need of internal reorganization at the authority
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The underground
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The tube faces the following problems:
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Some safety measures are still needed in order for safe operation to take place
in the two existing underground lines.
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Overcrowding because of the presence of few trains especially over the first
line. Hence the need for purchasing new trains.
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For the Railway Authority to operate properly three things must happen:
Improving the operation technically through the following:
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Renewing railway infrastructure and making available needed investments in this
regard.
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Doing preventing and regular maintenance and activating the role of railways
workshops with the aim of increasing operational qualifications.
* Administration reform
The following must be done:
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Reconsidering the organizational structure of the authority in the light of
present and future work needs. At the same time workers' skills must be
sharpened with the aim of increasing production.
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Using advanced mechanisms for evaluation.
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Kindling modern management systems as well as market mechanisms and commercial
mindsets.
* Providing necessary investments
Striking a financial balance between the activities of the authority is of
utmost importance. That is way concerted efforts must be made with the aim of
achieving this goal.
The government and the authority can take some measures each to reach that goal
including the following:
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The Railway Authority
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Full exploitation of the fleet and the network of the authority. Adequate
feasible studies must be conducted with the aim of seeing whether any expansion
would be economically and technically viable.
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Restructuring the lines to increase safety on them in a way that does not
impact the operation cost or the quality of the service provided.
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The authority should seek to establish joint companies with companies that can
bring in modern technologies for the new entities to offer some of the services
the authority offered previously.
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The authority should seek to establish joint management companies with
specialized companies to improve the technical performance of the authority's
workshops.
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The assets of the authority should be exploited in investment and commercial
projects with the aim of bumping up revenues.
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The government
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Increasing the funds earmarked for the authority and then considering the
equipment bought with these funds part of the assets of the authority.
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The authority would be responsible for managing national investments while the
government would be responsible for footing the bill so that the authority
would not be crippled with debt interests in this regard.
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Reconsidering the accumulated debts of the authority so that these debts are
paid by the government not the authority.
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The government should provide the authority with the necessary funds for
renewing and improving present network services. These funds can be part of the
debts of the authority later.
The Party and the government would make detailed study of the most useful of
the aforementioned solutions for the best interest of the authority on the one
hand and the general treasury on the other.
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There is an urgent need for the establishment of the third metro line given the
fact that this line would connect the east of Greater Cairo with its west. The
first two lines link the north of Cairo with the south. A scenario where the
third metro line is not existent foretells of major traffic jams in Cairo in
the near future as the first two lines were made to carry 3.7 million
passengers a day only.
This passenger capacity would not be enough to carry an expected number of
passengers of 8.7 million a day by the year 2022.
The third metro line is important for the following reasons:
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Meeting increasing demand for it in the areas where it is supposed to be
established.
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The third metro line would rid downtown Cairo of around 2 million journeys a
day.
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Reducing the pressure on the first two metro lines in a way that would improve
the quality of the metro services let alone the presence of an economic aspect
in the establishment of the third line.
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The third line would lead to social and environment gains as pollution and
noise would be reduced remarkably.
The government will decide on the best funding mechanisms for this project.
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Funding necessary for maintenance on the first metro line must be provided with
the aim of securing continued quality services on this line.
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The establishment of a network of railways to connect new urban communities
with Greater Cairo through quick and safe electricity propelled transport with
the aim of encouraging people to live in these new urban communities is
necessary. This would reduce overcrowding on the road network not to mention
benefits to the environment.
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Source: Transportation Projects Planning Authority
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Goods land transport
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| The institutional structure of land transport of goods |
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Prelude
Transport of goods in Egypt takes place through a network of roads, railways,
water passages and pipeline networks. Transport of goods happens through a
number of means including trucks, trains and water vessels.
The private sector is the main player in this area through the roads as its
share of carried goods accounts for 95 per cent. The remaining 5 per cent of
the goods are carried by railways and Public Enterprise Sector companies.
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Carried goods in 2002 accounted for 421.2 million tones. This is expected to
become 719.7 million tones in 2012. These figures refer to goods transferred
between the various governorates of Egypt. A similar amount of goods might be
carried within these governorates.
The following table indicates the share of each means of transport in the
period between 1992 and 2002:
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| Year
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Road transportation |
Railway transportation |
Nile transportation |
Total |
| 1992
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165.5ml Ton/92.8% |
9.6ml ton/5.4% |
3.2ml ton/1.8%
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178.3ml
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| 2002
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421.2ml ton/96.9% |
12.0ml ton/2.8%
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1.3ml ton/0.3% |
434.5ml |
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Source: General Authority for the Planning of Transportation Projects (2004).
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The previous table shows that the share of road transportation has increased
while the share of the railways and Nile transportation has been on the
decrease.
Types of transported articles:
The following table indicates the quantity of each transported article in 2002
and expected figures for the year 2012:
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| Serial
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Group |
Year
2002 |
Year
2012
|
| ml ton |
% |
ml ton |
% |
| 1 |
Oil products |
24.11 |
5.72 |
28.89 |
4.01 |
| 2 |
Construction materials |
204.68 |
48.59 |
390.26 |
54.22 |
| 3 |
Minerals |
9.38 |
2.23 |
12.94 |
1.8 |
| 4 |
Agricultural products |
86.52 |
20.54
|
129.42 |
17.97 |
| 5 |
Industrial products |
91.63 |
21.75 |
149.93 |
20.83 |
| 6 |
General products |
4.91 |
1.17 |
8.27 |
1.15 |
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Total
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421.23 |
100 |
719.19 |
100 |
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The previous table shows that there is an absence of coordination in the
transport of the various articles. For example, carried construction materials
accounted for 48.6 per cent of all transported goods in 2002 though the nature
of these materials qualifies other means of transport like railways or Nile
River transport to carry them to their destinations. This would of course have
had an impact on the conditions of the roads and the flow of traffic.
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An analysis of the capacity of the vehicles carrying shows the following:
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The vehicles consist of 743,000 trucks. Most of these trucks are not equipped
to carry containers in spite of the presence of an increasing number of
containers being carried from ports to various areas in Egypt. Neither are
these trucks qualified for carrying goods like agricultural products.
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An increase in the number of trailers to 52000 poses grave dangers to safety
and roads.
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Loads are usually not proportionate with technical codes of most roads, which
affects infrastructure negatively.
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Trucks, whether they belong to the Public Enterprise Sector or the private
sector, are getting too old.
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The presence of many ministries and bodies endowed with the responsibility of
carrying goods on the roads. Law No 64 for the year 1970 regulates road
transport. This law no longer suits the changes that emerged since the
seventies in this field.
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The private sector being the main player in the field of goods transport
subjecting the activity to market conditions created the previously explained
state of affairs. Hence the need for some regulations to ring in a balance
between the continuance of this activity and the preservation of
infrastructure. That is why the following steps are necessary:
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The Ministry of Transport must be the only body responsible for shaping the
norms regulating transport of goods land.
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The Ministry of Transport must be responsible for granting licences that
authorize people to work in this activity. Licences would be granted to
companies and cooperatives only. A grace period would be given these companies
and cooperatives to improve the services they offer.
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There must be a distinction between the licence authorizing people to work in
the transport of goods and driving licences. But both must be linked together.
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The Ministry of Transport must frame goods transport integration policies.
These policies must also open the door to a balance between the interests of
the owners of the carried goods and the people responsible for delivering these
goods to their destinations.
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Establishing storage and goods distribution points nationwide.
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Dedicating empty areas on the borders of the various governorates to receive
the carried goods and then send them to their destinations inside a given
governorate by small trucks.
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Road safety
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Prelude
Road accidents are a big affliction even on the international level. In Egypt
the problem is getting worse. It has even become an issue of national concern.
Hence the need for the concerted efforts of all the concerned authorities and
the efforts of all the institutions of society as well.
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Road accidents were the 9th cause of death on the international level in a list
of 15 other causes in 1990. Road accidents are expected to be the 3rd cause of
death in 2020, according to a World Health
Organization Report.
The following Ministry of the Interior statistics of the year 2003 indicate the
enormity of the problem in Egypt:
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Total number of accidents: 29111
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Deaths: 6766
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Injuries: 29658
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Total damage: 16820
More than 50 per cent of the dead in road accidents are people whose age
averages between 17 and 45 years old. The most productive age of course.
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The government and the party think that to attain a high standard of road
safety, two things must be done:
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First, an urgent plan for road safety
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The NDP, the government and society at large must join hands to solve the
problem of road accidents.
The urgent plan depends on two main elements:
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For it to be applicable as soon as it is endorsed.
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For it to be put into action without crippling the government with yet more
financial burdens.
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Source: Ministry of the Interior.
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The application of the urgent plan would depend on two factors:
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Activating laws and decisions regulating traffic.
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Administrative measures to secure road safety commitments.
A maiden application of the urgent plan must take a period of three months as
follows:
a- A broad media campaign aiming at the following:
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Shedding light on the enormity of the problem, its consequences and the human
and material losses that impact the national economy negatively.
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Reducing road accidents.
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Spreading traffic awareness.
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Lobbying for better traffic manners on the part of citizens.
All civil society institutions must take part in putting this media campaign
into action.
b- Traffic commitment can be achieved through the following steps:
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Full application of the Traffic Law through the following:
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Traffic regulations' commitment in the capitals of governorates in general.
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Applying maximum punishment in Traffic Law No 66 for the year 1973.
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Boosting the supervisory capabilities of the Ministry of the Interior.
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The urgent plan would be put into effect on some roads in way of
experimentation. An evaluation of this would be made later estimating the
positive and negative aspects in it.
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Second, safety criteria, operation rules and ways of applying them
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Though the government establishes many infrastructure projects including road
networks, yet road accident statistics underline the enormity of this problem
in a way that is unbecoming of a country in Egypt's importance.
To reduce road accidents the NDP and the government suggest the following:
a- Proposed measures to overcome the problem on the part of drivers Local and
international studies show that the human element in road accidents, the driver
of the vehicle in this case, is the most important element deciding the rate
and enormity of the accidents.
Hence the need for pouring more attention on ways of teaching car driving. Then
professional driving licences can be granted. At the same time the Traffic Law
must be activated particularly when there is a case of repeated mistakes on the
part of drivers. The most important suggestions in this regard are:
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Establishing more specialized schools to give driving lessons to those who want
to get a private driving licence or those who want to get a professional one.
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Reconsidering the current system through which people renew their driving
licences or sketch out a new one. A primary driving licence can be granted
persons who are over 18 years old. An evaluation of the performance of these
people can be done later to determine whether they deserve a permanent licence.
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Reconsidering the system through which individuals get a professional driving
licence applying the following measures:
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A person who wants to get a driving licence must be a high school graduate.
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Those who currently have driving licences should be referred to training
centers for them to get enough training before their licences are renewed the
next time.
b- Measures that should be taken to reduce car accidents as far as vehicles are
concerned
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An evaluation of the vehicle to show that it is fit for moving on the road
Framing a new system for examining the technical condition of vehicles. The
examination must take place at specialized centers to ensure whether the
vehicle can work well. Random examinations on roads must also take place to
ensure that vehicles are fit.
-
Tightening supervision over spare parts in the local markets and the local
spare parts industry especially in relation to trucks and buses.
-
Reconsidering passenger and goods transport licencing periods.
c- Professional medicine and medical awareness measures
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Defining the medical condition applicants for a professional or a private
driving licence should meet.
-
Subjecting public transport and the transport of goods drivers to a medical
checkup to see whether they have diseases that can influence their performance.
-
Strictly monitoring the issuance of medical certificates that are one of the
documents for a licence application.
d- Engineering measures to increase road safety
-
Traffic safety measures must be taken into account when determining road codes
in the future.
-
Activating the role of the Traffic Engineering Administration in all
governorates, cities and provinces in drawing up road safety criteria and
supervising their application.
-
Continual maintenance of the roads with the aim of increasing their safety.
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Improving Nile River transport
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Prelude
The Nile River had been an essential transport route between the north and the
south of Egypt for too long. Nile River transport had been of paramount
importance until the late sixties. The fleet was in good condition while the
state shouldered the cost of operation. The state itself also determined the
price for the transport of goods as there was not any competition with other
transport whether by rail or by land.
With the emergence of land transport the time factor became an important
element in determining whether goods would be carried by land or water.
Therefore Nile River transport began to be eclipsed.
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Nile River transport possesses the following merits:
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The presence of infrastructure -the River Nile and its branches- that does not
burden state budget compared with infrastructure needed in rails or roads.
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Low operation cost of Nile River units as the average fuel consumed by Nile
River units is half the amount other transport consumes. This gives an economic
aspect to Nile River transport let alone the environmental dimension of it.
-
Nile River transport is fit for carrying low-value products and equipment with
untraditional lengths.
Problems of Nile River transport
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Small attention has been give to upgrading the watercourse during the last
years, which led to its deterioration.
-
Dearth of investments for Nile River infrastructure projects.
-
Nile River transport companies' ships are getting old making them impotent.
Professional standards as far as the personnel of these companies are concerned
are dipping. All this scarred people away from dealing with these companies.
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An upgrade of Nile River transport would achieve a national goal and that is
reducing the pressure on roads, which would of course reduce maintenance costs.
To upgrade Nile River transport the following measures must be taken:
-
A strong commitment to putting the plan for enhancing the watercourse and Nile
harbours into action.
-
Founding strong private sector and public sector Nile River transport companies
would advance transport systems. But this makes it necessary for the government
to provide the required incentives to lure the private sector to get involved
in the Nile River transport field. A concession for operating some Nile
harbours can be given the private sector.
-
Founding Nile harbours management companies.
-
Harbours and Nile points must be linked with other transport.
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The general framework for transport integration on the national level
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Prelude
The nature of transport in Egypt makes it fall under the mandate of many
ministries and government bodies, which led to:
-
Contradictory projects.
-
Imbalance between offer and demand for transport services.
-
Varied technical standards in the projects, which fall under the mandate of the
different government bodies.
-
No commitment to putting safety rules and quality measures into effect.
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The NDP and the government underline the importance of the integration in
transport on the national level and the continuation of government supervision.
A friendly climate must be created to allure the private sector to take part in
establishing transport service projects in the light of the regulations the
government sets in this regard.
Targeted integration can take many forms including the following:
-
Integration on the levels of planning, application and management in transport
-
Integration in transport services
-
Integration among the government, the Public Enterprise Sector and the Private
sector in transport services
-
Legislative and organizational integration among ministries and bodies that
offer transport services.
Another kind of strategic integration among the bodies that offer transport to
achieve the following goals:
-
Underlining the importance of the government's role in planning and
supervision.
-
Devising transport strategic policies on the national level to meet present and
future demands.
-
Planning transport projects on the national level centrally and locally and
prioritizing the projects to open the door for transport strategic integration.
-
Involving the private sector more in operating, managing and funding transport
projects.
-
Giving more attention to pricing issues. A social dimension must be taken into
account.
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Transport projects and service funding methods
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Prelude
Transport projects are infrastructure projects that need huge investments for
upgrading and maintenance. They represent an important part of any state's
assets.
Given the fact that the investments needed for transport projects are huge and
scarce at the same time, funding of these projects has become one of the
biggest challenges. A scarcity in funds has resulted in a situation when
transport services always lack upgrading.
There is an urgent need for drawing up funding methods that prop the amounts of
money the government allocates in this respect. Applying international models
in this regard is important.
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The following table sums up the current situation of funding and managing
transport services in Egypt:
Current situation of funding and managing transport services in Egypt
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|
| Operation
environment |
Type |
Funding |
Management
& operation |
| Inter governorate |
Infrastructure
Roads
Railways
Nile transport |
Government
Government
Government |
Government
Government
Government
|
Operation
Bus
Taxi/microbus /Service
Goods transport
Railways
Nile transport |
Pub sect/ priv
private
Pub Enterpr
Government
Pub Enter/ priv |
Pub Enter/ private
private
Pub Enterpr
Government
Pub Enter/ priv
|
| Inside the cities |
Infrastructure
Roads
Railways
Metro
Tram
|
Government
Government
Government
Government |
Government
Government
Government
Government |
Operation
Bus
Taxi/microbus
Goods transport
Railways/ Metro
Tram |
Pub sect/ priv
private
Pub Enterpr
Government
Government |
Pub Enter/ private
private
Pub Enterpr
Government
Government |
| International outlets |
Infrastructure
Ports (excluding priv ports)
Airports (excluding Marsa Alam) |
gov
gov |
gov
gov |
Operation
Ports (excluding Ain Sukhna And east Port Said)
Airports (excluding Marsa Alam) |
gov
gov |
gov
gov |
|
|
The previous table shows that the government is responsible for transport
infrastructure. At the same time, services are offered by government bodies,
the Public Enterprise Sector and organized and disorganized private sector.
The private sector is still unable to take part in the execution of
infrastructure projects like roads, bridges, ports and airports effectively.
|
|
|
|
The NDP and the government perceive as important the presence of integration
between the government and the private sector in realizing economic development
goals in an atmosphere of transparency and stability.
Accordingly, the NDP and the government feel the need for augmenting the
following precepts:
-
Given economic alterations worldwide, governments alone can not be left to
shoulder the burden of financing infrastructure projects solely.
-
The government can not expect the private sector to stretch a hand out in help
in financing transport infrastructure projects in the foreseeable future. Yet
for the government to be the only player in this field may not be enough to
execute all transport projects.
-
True transport infrastructure is costly. But transport projects can be
profitable. That is why this field can attract many investments.
Hence the need for ways to prod the private sector to partner with the
government in the management of transport infrastructure projects.
The merits inherent in the participation of the private sector in funding,
operating and managing transport projects:
-
Bridging the gaps in government funding.
-
Other partners would shoulder the burden of funding some projects reducing the
pressure on the state budget.
-
Transfer of modern technology.
-
Achieving considerable social and political goals compared with total
privatization.
-
Improving the transport services offered the citizens.
-
Applying modern management systems.
-
A tools for structural reform in public transport institutions. Reasons why the
private sector does not participate in this field
-
The presence of a low financial return from some of the projects let alone the
presence of many operational risks.
-
The presence of too many bodies regulating the participation of the private
sector and also the presence of too many administrative procedures.
-
Some of the current legislation does not suit current economic trends in the
field of liberalizing transport services.
-
Overcoming the aforementioned obstacles is not impossible. Yet measures that
encourage the private sector to take part in funding and operating transport
projects must be taken.
-
A blanket theory can not be applied as far as the participation of the private
sector is concerned. Measures that suit one particular project may not suit
another. At the same time, the capabilities of the state on the one hand and
those of the private sector on the other can not be ignored. Success achieved
by the government in managing one transport project may not be repeated by the
private sector in the same project.
-
The NDP and the government put faith in that invigorating local transport
equipment industry would reflect positively on the ability to fund transport
projects. The government has already taken steps on the way of encouraging the
local transport equipment industry.
However, stable policies and definite programs are required.
-
Market economies and free markets have created a new reality.
However, this would not change the government's mind towards the low-income
brackets. But, they have changed the tools available for the government for
reaching that goal.
According to the economic paper the 8th general conference of the party
endorsed in September 2002 the government is going to define the social
segments that deserve subsidies in the field of transport and then deliver
these subsidies to them in a way that hits the target.
According to the studies the NDP conducted, the revenues of transport
infrastructure projects do not cover the costs of operation and maintenance of
these projects.
True, the government is responsible for making the infrastructure. However, the
revenues of these projects should cover their operation and maintenance cost or
even a big part of them.
Public transport by land must be upgraded in a way that allows it to cover
operation and maintenance costs or at least a big part of them. The following
steps must be taken:
-
Defining the transport that needs subsidies to allow for a social dimension in
the price of the tickets.
-
Drawing up a pricing framework for transport services to determine how much
subsidies these services should receive.
-
The Public treasury would foot the bill of the difference in price between the
economic fares and the subsidized ones.
|
|
Improving the legal framework
|
|
Public and goods transport by land and Nile River transport
|
|
Prelude
Current transport legislation contains many laws, presidential decrees, Cabinet
decisions and ministerial decisions. This led to a difficulty in coordination
among the various decisions, laws and decrees.
Though many of these decisions, laws and decrees have been amended yet the
biggest part of them does not suit ambitions for an upgrade of transport
services.
Hence, the need for making basic changes to current legislation for it to be up
to the vision of the NDP and the government for advancing transport services.
A Unified transport law is needed in the near future to regulate internal
transport on the national level and replace the too many decisions, laws and
decrees referred to above.
Upgrading the legal framework takes two stages:
First, introducing amendments to the following legislation:
-
Law No 64 for the year 1970, which regulates transport of goods.
-
Law No 55 for the year 1975 regulating the commitments of public transport
administrations.
-
Law No 155 for the year 1999.
-
Presidential Decree No 474 for the year 1979, which stipulates the
establishment of the General Authority for Nile Transport.
Second, the unified transport law should take the following points into
account:
-
To suit current and future changes and tighten supervision over transport.
-
To allow for the upgrade of transport services putting the peculiarity and the
priorities of the Egyptian economy into consideration.
-
Defining the role of the Ministry of Transport as the body that is primarily
responsible for organizing and supervising transport changing its nature from a
transporting body to an organizing one.
-
Defining the exact relationship between the Ministry of Transport and the other
ministries and bodies that offer transport services especially the municipal
councils.
-
The new law must include a provision over future plans on strategic transport
integration.
-
Creating the climate that encourages the participation of the private sector in
funding and operating transport projects putting international trends in this
regard into account.
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Conclusion
|
|
The NDP's belief in the importance of upgrading transport services stems from
the belief in their importance for economic and social development.
The NDP perceives safe transport for citizens as a citizenship right.
Party papers in this respect focus on the need to offer safe and suitable
transport services in the light of the needs of citizens and comprehensive
development requirements.
Presenting the contents of these papers to the 2nd annual congress of the party
would be an embodiment of the slogan "A Call for Participation" the party
endorsed in the 8th general conference. It would also be an expression of the
role the NDP plays in drawing up general policies for the best interest Egypt
and its citizens in tandem with the government.
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