Egypt Raises Rail Fares by 22-35%

Minister of Transportation Kamel Al-Wazir announced on Wednesday, during the cabinet meeting, the raising of railway prices as of July 30, in proportion to the quality of the service provided.

Al-Wazir stated that the expected increase in prices will include only new trains, noting that the increase is not significant and at reasonable prices.

The increase includes the Cairo-Alexandria line, the first luxury air-conditioned class to 125 pounds instead of 100 pounds, up 22.2% and second-class air-conditioned trains to be 100 pounds instead of 70 pounds, up 35%.

The minister pointed out that the new prices are superior compared to other alternatives, such as micro-buses. "The new trains are air-conditioned, work under an accurate timetable and have higher safety factor," Al-Wazir noted.

He attributed this increase to the desire of the Railways Authority to cover part of the operating expenses, salaries, explaining that tickets only cover 70% of the cost of operation and maintenance.

He pointed out that the volume of annual railway spending until last year amounts to 7.5 billion pounds in operating expenses, while revenues hardly reach about 3 billion pounds, covering less than 50% of the operating expenses.

The authority owes 111 billion pounds of debt, including 35 billion pounds for the Central Bank of Egypt (CBE), 35 billion pounds to the National Investment Bank of Egypt, and 35 billion pounds to the Ministry of Finance.

Meantime, the ministry is working to develop the railway and introduce 900 trains by 2024, transporting a million and a half million passengers per day, and more than 2 million passengers in 2030, along with a plan to enhance the transportation of goods via railways to maintain the durability safety and more revenues.