Dubai, October 21th 2014

10th MENA RAIL and METRO Summit

MEED

Management and technical assistance in a

modern rail system

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Egypt, one of the most populated countries in Africa

Transport sector demand

1. Population

2. Mobility

3. Economic and social

benefits

• 87 millions (2013)

• Steady growth: above 2% every year

• 33% of population in the age 0-14

• Total Demand: + 5% every year

• Rail market is 9% of total mobility flows

• Rail demand from 50 M of seats to 126 M

for long distance journeys in 10 years

• Worst road accident index in the world

(156 road accident deaths per 100,000

vehicles)

• Tourism growth

• Environment and Health

• New Communities and Investments

• Employment

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Egyptian National Railways is the backbone of the Egyptian

passenger transportation system

Rail sector is strategic for Egypt

Level

Crossings 1,320

618

Lines 4,872 km

Tracks 9,500 km (600 km of track renewal backlog)

(83% with mechanical signalling system)

(less than 100 automated and 4,000 illegal)

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Rail sector figures and services

1,100 trains/day

Revenues: 2.4 Billion EGP

Investments: 1.4 Billion EGP (187 million Euro)

720 locomotives, 3,370 coaches, 11,800 wagons

60,000 Employees

1.2 M passengers/day; 4 M Tons/year of freights

(punctuality on arrival 65%)

(fare evasion 40%)

(Labor cost 2.7 B EGP)

(mainly for spare parts and

maintenance)

(50 % of top management go retirement in few years)

(age of the fleet very high)

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Management of a rail system

• Customers expectations

• Rail safety and quality

• Efficiency and business sustainibility

• Best practices and processes

• Competence and know-how

• Rail network

• Rolling Stock

• Stations and Buildings

• Technologies

• Human Capabilities

• Management andTechnical Assistance (Maintenance

infrastructure and Operation)

• Knowledge transfer

• Processes and Procedures

• Committment and Performance management

RAIL ASSETS

(new or existing)

RAIL SYSTEM

(international standards)

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Egyptian National Railways targets

The technical assistance for the Egyptian national

railways tackles two main objectives:

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Enhance skills and competence, process reengineering

and technology.

Modernize ASSETS

BEST PRACTICES for Safety and Quality

Infrastructure network, rolling stocks fleet, stations,

workshops and Information Technology in line with

international standards.

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Processes and Procedures

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The processes cover all aspects of a modern railway system and are designed

according to international best practices and in line with European Regulations.

Almost all the proposed processes can be managed through integrated systems

contributing to an high level of reliability and efficiency.

Infrastructure asset management

Processes

Infrastructure network performance

Infrastructure capacity allocation and offer

Train circulation: rules and operation control

Rolling stock asset management

Time table planning (long and short term)

Control train circulation

Business Plan and budget

SMS, QMS, OHSMS, EMS

Competence and training

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Knowledge transfer process

2 Knowledge transfer and training are focused on acquisition and maintenance

of certified skills, designed to match the technical contents of the processes,

giving high priority to the critical jobs in terms of safety regulations and

management know-how transfer and managing such approach through a

Competence management system

Jobs direct related to train circulation and critical for safety regulations

Circulation and traffic management

Infrastructure maintenance

Signalling and telecommunication

Train Drivers

Train Conductors

Train composition

Train technical verification

Rolling stock maintenance

For these roles it is mandatory

to identify a methodology for

recruitment, training, control

and maintenance of the skills

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System integration

3 To manage a modern rail system matching the expectations of the Customers

an high level of process integration between Infrastructure and Operations

activities is requested through technology and systems between network

management and transport services

Processes Level of integration

Asset management

Train operation

Integration for workshops, stations and yards

Strong integration in the capacity planning, offer

and control of the circulation

Passenger and customer information

Strong integration in the information to Customers

in the stations, on board and freight Customers

SMS, QMS, OHSMS, EMS Integration in the approach and implementation

Business Plan and budget Integration in the P&L statement

Time table

Crew management and payroll

Strong integration between capacity planning,

asset management and offer

Ticketing system and revenue management

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ENR Investments Plan by categories

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ENR Investments Plan: strategic assumption

ENR Investments Plan - 77 billions of EGP in ten years - is based on some

strategic priorities defined at Ministry of Transport level and the projects

included in the Plan are focused on the implementation of such strategies.

1 Enhance level of safety according to international standard through the

upgrading of signalling system and automatic train protection on four main

corridors and 3,500 km of secondary lines, automation of 65% of level

crossing, renew more than 37% of the tracks in the next five years.

Main key points:

2 Modernize ENR fleet of coaches, of which 50% has exceeded 30 years

old through renewing current rolling stock and supplying new locos and

trainsets with the aim of increasing safety and level of services.

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ENR Investments Plan: strategic assumption

3 Upgrade the efficiency of ENR 20 main workshops for overhaul and

current maintenance through rehabilitation and supply of fixed and

moveable equipment and machines also improving spaces availability

inside the yards and level of safety and security.

4

Increase the freight market share through improving freight fleet and

container transport; moreover promoting modal shift from road to rail

involving private operators in some sectors (cement, sugar, cerals).

5

Upgrade information technology and promoting the complete application

inside ENR of the systems like ERP SAP, ticketing and sales system,

delays management system, rolling stocks circle and electronic timetable,

completing also the electronic networking among ENR Departments.

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Modernize the railway assets

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Qabbary block with mechanical signalling

levers (points and signals) Mechanical signal

83% of the network with mechanical system

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Modernization of Cairo – Alexandria Corridor

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Rail Profile

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Rail Profile

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The new Borg El Arab junction

Marsa Matruh Alexandria

Freight area

Km 42,950

Passengers line

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Burg El Arab new line

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Rolling stock renewal for Burg el Arab services

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Burg el Arab Freight terminal 1

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Part of the fleet coaches have more than 30 years

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New fleet for short distance passengers

Flexibility in operation

Reduction of time between

services

Fleet maintenance

optimization

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Aswan workshop before renewals

Aswan workshop for Long

distance trains:

current maintenance for

locos and coaches.

6 maintenance sidings

(2 with inspection pits)

18 locomotives & 55

coaches assigned

521 people

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Aswan workshop after renewals

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Kabbari freight workshop before renewals

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Kabbari workshop after renewals

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Tanta workshop before renewals

current maintenance and

overhaul for coaches.

12 maintenance sidings

(9 with inspection pits)

66 locomotives & 401

coaches assigned

15 Coaches

overhaul/month

1.318 people

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Tanta workshop after renewals

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Teebin: tracks occupied with scrap wagons

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Scrap in Teebin warehouse

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Teebin after cleaning operation of ten tracks

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Drivers rest-houses upgrading plan

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Old System

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Cairo station: tickets office

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Old System

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New System

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Cairo station: 1892

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Cairo station: before renewals (2008)

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Cairo station: before renewals (main hall and entrance)

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Cairo station: after renewals (2011)

2,300 sqm of commercial spaces

206 new parking spaces

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Cairo station: main hall

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Co - Chairman

Infrastructure Signaling

Maintenance

Finance

Procurement

HR Long Distance Transport

Short Distance Transport

Freight Transport

Business management functions

Specialized technical functions

Support functions

The cooperation between Egyptian and Italian railways

Support, cooperate and tutoring Egyptian Railways through 10 seconded

Italian railway managers based in Egypt to jointhly manage the

restructuring and development Plan

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An efficient rail operator providing safety and

quality public services and competitive commercial

products on a sustainable financial basis.

The Plan includes all the actions able to transform ENR in a

transport Organization in line with its mission.