Egypt hikes train fares to pay railway debt

Arab News: Egypt’s government has announced that it would raise train and metro fares by up to 25 percent by the end of August to reduce the debt of the Railway and Subway Authority, according to local reports.

In televised statements, Kamel Al-Wazir, Egypt’s minister of transport, said the increase would cover the loans taken out to develop the rail system, and to offset rising fuel and repair costs.

Al-Wazir said the total debt of the railway entity amounted to LE83 billion (over $4.3 billion), part of which was repaid. The authority still owes LE5 billion (over $262.8 million) to the Ministry of Petroleum and Mineral Resources.

Experts have reportedly indicated that ticket prices have to be increased to pay for the development of the country’s ageing railway system.

The government initially said it would raise fares at the beginning of August, but later decided to delay the increase until the end of the month when “studies on the decision are complete.”

Official statistics by the Transport Ministry state that the three metro lines carry 4.6 million passengers daily, while other trains transport 1.1 million passengers every day.

The minister said students and veterans would be exempted from the increase.

Arab Contribution Time: 03-Aug-2022 21:55 (GMT)
Arab Last Update Time: 03-Aug-2022 21:55 (GMT)