HCMLT and ERA Create Integrated Freight Transportation Joint Venture
The Holding for Maritime and Land Transport (HCMLT) and the Egyptian Railways Authority (ERA) have signed a cooperation protocol to establish a joint freight transport company.
The HCMLT is affiliated with the Ministry of Public Enterprise Sector and the ERA is affiliated with the Ministry of Transport.
The new joint venture will see both parties use various forms of transportation to provide an integrated freight transportation service. The main activity of the company is to own assets and to manage and operate transport services which combine the use of rail and road vehicles.
It aims to obtain the best service in terms of cost, speed and efficiency, with the addition of river and sea transport in the future.
Public Enterprise Sector Minister Hisham Tawfik highlighted the benefits of combining various means of land and rail transport to move goods.
He noted that with the planned future integration of sea or river transport into the business, the new system will provide high quality services to manufacturers and traders.
It will also work according to international best practices characterized by speed, efficiency and low cost.
Tawfik explained that the new company’s integration of road and rail transport methods will result in a doubling of the transport volume. The management of the company will be entrusted to a specialized operator with international experience in the management of the logistics of the transport of goods using several modes.
He added that the operator will be selected on the basis of a limited tender launched among large companies operating in this field. This will ensure that the selected candidate will run the business and transfer overall operational expertise to their workers through a medium term employment contract.