MENA Rail and Metro Summit

MENA Rail and Metro Summit

MENA Rail and Metro Summit

Title: Two distinct Rail Markets: Saudi Arabia and Egypt

Written content section 1:

Egypthas the oldest rail networks in the MENA regionand thesecond-oldest in the world, opening in 1854 between Alexandria and KaferEassa. The mainland network of lines runs almost 9,570km and is operatedby the state-owned Egyptian National Railways (ENR). Co-Chairman of the ENR Transformation and Restructuring Program – Nino Cingolani will be speaking about railway rehabilitation and opportunities to upgrade obsolete technology at the 10th Annual MENA Rail and Metro Summit this October. The government has prioritised the reconstruction of the networks. It is projected that a quarter of Egypt capital investmentis spent on rail projects. The value of rail contracts expected to be awarded in 2014 for 3 projects is $15.8 bn.

The government’srecognition of the rails’ dated construction andupkeep of the system translated in The ENR’s heavy emphasis on.Withthe passenger traffic in 2011 of over 4,000m passengers per km,the railway investments will bring high returns to investment very soon.

Map- remove “country” from all boxesand round value to be in billion(bn) instead of million(m).

Written content section 2:

Saudi Arabiain contrast to Egypt’s long standing rail construction history was set up in 1951.The government owned Saudi Railways Organization (SRO)are planning over 1300km of track linking major industrial and urban hubs around the country. This October, the Project Director of the Saudi Railway Company (KSA)- Dr. Bashar Al Malik will be presenting the Saudi project’s civil works, telecoms and maintenance plans at the 10th Annual MENA Rail and Metro Summit.The total estimated expense of the project that will be completed over threephases stands at $97bn. Thecumulative value of rail contracts expected to be awarded in 2014 for 8 projects is forecasted to be $47.9bn.

Saudi Arabian residents currently favour the use of private transport like cars over public transport such as trains or buses. Where KSA faces a trial as a new player in the rail industry its risks are mitigated bysurplus government funding onsuperior material quality and system upkeep.

Table-

EGYPT’SLONG STANDING RAIL VS. AND SAUDI ARABIA’S HIGH DRIVE

Country/ Description / Egypt / Saudi Arabia
System inauguration /
  • Dates back to 1854
/
  • Set up in 1951

Total spending /
  • $15.8bn on 3 projects
/
  • $47.9bn on 8 projects

Owned and operated by /
  • State owned-Egyptian National Railways
/
  • Government owned company- Saudi Railways Organization

Emphasis of projects /
  • Heavy emphasis on reconstruction
/
  • Rapid expansion of new projects

Trends in passenger usage /
  • Frequently used mode of transport- 4,000m passengers/km
  • Passenger usage expected to increase
/
  • Passenger usage expected to grow 2.5% p.a.
  • Private transport is a preferred means of transport

Challenges /
  • Dated construction and neglected upkeep of the system
/
  • Human resources- recruiting, training and retaining local talent