Passengers are seen at Ramses station, Cairo's main train station, in central Cairo, Egypt, November 18, 2015 - REUTERS/Luke Baker
CAIRO – 13 March 2018: Egyptian Railways Authority announced the final financial results of fiscal year 2016/2017, pointing out some important numbers which clarify the reasons behind rail accidents and poor service.
Egypt Today reviews the most significant numbers of the Egyptian railways’ financial indicators.
The 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, attributed the increase in loss to the expected decline of revenues by LE 500 million, noting that revenues used to decline by more than LE 1.5 billion.
The indicators showed that loan interest recorded LE 4.5 billion in 2016/2017.
The actual expenditure on spare parts and equipment decreased by LE 220 million and the actual expenditure on maintenance fell to LE 433.4 million.
Abdullah added on Thursday that expenses increased as a result of the doubling of fuel and purchasing services' prices. He also stated that the authority cannot raise the price of the ticket until the service is improved.
The authority’s revenues during 2016/2017 declined by 13 percent or LE 527.1 million.
President Abdel Fatah al-Sisi said on March 1 that Egypt’s rail lines require funds ranging from LE 200 billion ($11 billion) to LE 250 billion ($14 billion) to be upgraded.
Minister of Transport Hesham Arafat said earlier that railway networks’ infrastructure has aged, especially its signaling systems and tracks, 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.
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 Arafat said in a June statement that the authority needs LE 9 billion to continue the developmental projects.