Egypt is planning to merge three public land transportation companies into one entity and invite a foreign investor to buy it. Minister of Public Works, Hisham Tawfiq named Upper Egypt Transport, Tourism, and East and West Delta as the companies being aggregated, explaining that as one private asset, they would provide electronic ticketing and Wi-Fi services.
Owning and maintaining a car used to be cheap in Egypt. Major roads were toll-free. Street parking was not charged. Gasoline and diesel were heavily subsidized. Buses cost about LE1 and there was an overabundance of minibuses and vans and cars. But that was all five years ago. Today’s reality is that these “gifts” have all vanished due to changes in government policies, creating an increased demand for alternative transportation sources.
Private investors answered that need and now, the government appears to be waking up to it. Having invested about $2.2 billion in improving road networks across the country, the Egyptian government may be looking to earn back some of that money with this merger. The government is also reportedly planning to increase profits by reducing operating costs, right from the senior levels of management.
Overstaffed and thick with bureaucracy, as well as a poor Click here to read entire article
Source:: Ventures Africa