Egyptian Railways record actual loss of LE 6.3B in 2016/17

CAIRO – 7 March 2018: Egyptian Railways Authority recorded an actual loss of LE 6.3 billion by the end of fiscal year 2016/2017, compared to LE 4.3 billion estimated for the same year, Vice Chairman of the Board of Directors of the Egyptian National Railways Authority for Financial Affairs, Hosney Abdullah said.

Abdullah attributed the increase of loss to the expected decline of revenues by LE 500 million, noting that revenues used to decline by more than LE 1.5 billion.

Abdullah added that expenses increased as a result of the doubling of fuel prices and purchasing services. He also stated that the Authority cannot raise the price of the ticket until the improvement of the service.

President Abdel Fatah al-Sisi said on Thursday that Egypt’s rail lines require funds ranging from LE 200 billion ($11 billion) to LE 250 billion ($14 billion) to upgrade them.

Minister of Transport Hesham Arafat said that railway networks’ infrastructure has aged, especially its signaling systems and track, and that they require upgrading.

Arafat said that the ministry is exerting efforts to improve the basic rail infrastructure by constructing, investing and operating, but a huge amount of money is needed nevertheless.

At least 15 people have died and 40 were injured in a train crash that took place in Beheira governorate on Wednesday, according to the transport minister’s spokesperson Mohamed Ezz.

The revenues of the Railway Authority recorded LE 190.7 million ($10.8 million) in January 2018, compared to LE 164.1 million in January 2017 and LE 168.7 million in December 2017.

The Egyptian Railways Authority’s budget in fiscal year 2017/18 is LE 3 billion.
Minister of Transportation Hesham Arafat said in a June statement that it should have been LE 9 billion for developmental projects to continue.