Egypt's transportation sector is the second largest contributor to greenhouse gas emissions in the country, at around 19%, according to the World Bank
The World Bank has announced the approval of $400 million worth of development financing to develop sustainable infrastructure and support the transition to low-carbon transport within the transportation and logistics sectors.
The project will center transport along the Alexandria–the 6th of October–Greater Cairo Area (GCA) railway corridor, which will allow for increased freight capacity and decrease traffic in areas with high demand for passenger trains.
Egypt's transportation sector is the second largest contributor to greenhouse gas emissions in the country, at around 19%, according to the World Bank.
Within the framework of the Cairo Alexandria Trade Logistics Development Project, it will introduce freight trains between the Alexandria Sea Port and the newly constructed 6th of October Dry Port, with an alternative route to the west of Greater Cairo.
The operational bypass will also allow 15 container trains per day by 2030, and as demand increases, 50 trains by 2060 to this dry port, along with additional freight trains flowing between the Alexandria Port, Upper Egypt, and the Red Sea.
The WBG estimates that the project will reduce greenhouse gas emissions by 965,000 tons over 30 years.
The development financing has a term of 29 years, including a 7-year grace period, explained Minister of International Cooperation Rania Al-Mashat.
It will include technical and institutional support for the National Railways Authority, and is set to enhance the country’s efforts in boosting private sector participation in development efforts, she added.
“This operation is part of a wider set of efforts dedicated to offering timely and comprehensive support to Egypt's economic development and climate change plans,” said Marina Wes, WBG Country Director for Egypt, Yemen, and Djibouti. “We hope that through supporting more job creation, including for women, a cleaner environment, and providing safer mobility, the operation will contribute towards a brighter and more prosperous future for all Egyptians,” added Wes.
The ongoing development finance portfolio between Egypt and the World Bank includes 15 projects worth $5.7 billion, revealed Al Mashat.