Cairo Alexandria Trade Logistics Development Project Procurement Process Expected Q2, 2023
In October 2022, the World Bank’s Board of Executive Directors approved US$400 million in development financing to enhance the performance of the logistics and transportation sectors in Egypt, supporting the shift towards low-carbon transportation along the Alexandria–6th of October–Greater Cairo Area (GCA) railway corridor.
The media release notes, “Egypt’s rail system is one of the most extensive in Africa, with a generally heavier focus on passenger services, and three freight trains per direction per day in the GCA, with the rest dedicated to passenger trains.”
The Cairo Alexandria Trade Logistics Development Project aims to implement a railway bypass for the congested GCA. This bypass will provide freight trains with an alternative route between the Alexandria Sea Port and the newly constructed 6th of October Dry Port, located west of Greater Cairo. The operational bypass is expected to allow 15 container trains per day by 2030 and, as demand increases, 50 trains by 2060 to this dry port. Additional freight trains will flow between the Alexandria Port, Upper Egypt, and the Red Sea.
Toward the end of February 2023, the Arab Republic of Egypt’s Ministry of Transport and Egyptian National Railway issued a “Specific Procurement Notice” for the modernization of the signalling system and track works on the Cairo Alexandria Trade Logistics Development Project. The initial procurement notice is divided into three lots:
LOT 1 – Greenfield Link (68 km) and Marazik-Wahat (67 km) Section Upgrade – Track Upgrade and Signaling Modernization;
LOT 2 – Bashteel – Itay El Baroud Section Upgrade (117 km); dualization between Bashteel and El Itihad (provision of a new track, about 90 km), and the single track upgrade between El Itihad-Itay El Baroud, selective upgrade of existing track and installation of the new signalling system in both sections from Bashteel to Itay El Baroud; and
LOT 3 – El Itihad – Al Nahda Section Upgrade (96 km) – Track Upgrade and Signalling Modernization.
According to the procurement notice, these three lots will be implemented in parallel, and all the greenfield civil works in support of the scope of Lots 1 and 2 above (structures and embankment of the new track for LOT 1, and structures and embankment of the doubled track for LOT 2) are currently being implemented by the General Authority for Roads and Bridges (GARB). To support the integration of works delivered by GARB and those delivered under the three lots above, the ENR will appoint a Project Supervision and Integration Manager. The chosen contractors will implement the track and signalling on top of the structures and embankments built by GARB.
The Egyptian National Railway initially intends to select applicants for the three lots for the turnkey contract, which includes engineering, procurement, and construction. Eligible proposers will design, supply, construct, phase, test, and commission spare parts, training, documentation, total guarantee with maintenance services, assistance in operation, track renewal, installation of new track, and maintenance for five years of signalling and telecommunication systems, and power supply systems, with the required related civil works under the Cairo Alexandria Trade Logistics Development Project.
It is expected that the Request for Proposals will be made in Q2 2023.