Cairo Alexandria Trade Logistics Development Project

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The Project will build a railway bypass to the congested railway network around greater Cairo. This bypass will improve the efficiency of freight transport between the Alexandria Sea Port and Greater Cairo. Coupled with ongoing improvements to the railway lines between Cairo and Nag Hamadi under the RISE Project, freight trains can reach Upper Egypt. The bypass includes a greenfield segment starting at the Bani Salamah station on the line connecting Bashteel with El Itihad stations) and the Marazeeq-Wahat line. The bypass also upgrades the signaling on the Marazeeq-Wahat line, between Marazeeq (km 0 point) and the meeting point with the greenfield segment. The Project will also improve access by train for container trains to the 6th of October Dry Port (DP6) which manages only containers and lies along the Marazeeq-Wahat railway line. The Project will also upgrade the railway signaling on the Bashteel-El Itihad (El Manashy segment) and El Itihad-Tafaroa (El Itihad segment) between Greater Cairo Area and Alexandria.The Project will increase the capacity of the existing railway corridor between Alexandria and Cairo to manage freight trains. The Project will allow, for example, to increase from 4 trains per day bound to DP6 to more than 30 once all the Project is complete. Traffic for other types of freight trains will also increase. Moreover, because of the bypass to the heavily congested area of Greater Cairo, the Project will increase the railway connectivity to Upper Egypt, allowing for a trade and economic corridor to Sudan. Furthermore, the Egyptian railways' network is extensive, so this bypass opens up other parts of the network to railway traffic, including the Damietta Port and Port Said. Other dry ports can also benefit if they build last-mile connectivity to the existing ENR network to take advantage of the projects' benefits.The Project will also introduce the Infrastructure Access Charge (IAC) regime for railways in Egypt. The IAC allows private railway operators, for example, to run their trains, paying a charge to ENR as the owner of the tracks. The railway bypass to the bottleneck in the GCA increases capacity to allow more trains, including those eventually operated by the private sector. The Project also opens up other private sector participation opportunities in railways.As part of the project design, all subcomponents embed a zero harm/zero tolerance, safety first” into the upgrade and new works on the tracks, at communities along the tracks, ensuring safety for communities along the tracks, such as fencing, level crossings, and education measures.The Project has the following components:Component 1. Railway Sector Reform, Project Delivery, Stakeholder Engagement, Women's Economic Empowerment, and Private Sector Participation1.1 Railway sector reform: (a) Developing and adopting a transparent railway infrastructure access charging (IAC) scheme for the Egyptian railway network, determining the specific charges to be paid for access and use of infrastructure by public and private railway operators, and supporting the ENR in drafting, negotiating and entering into IAC Contracts with private railway operators; (b) developing a regulatory framework for the railway network, identifying the detailed scope and responsibilities of a railway regulator and the associated governance framework; and (c) identifying and developing additional rail-friendly policies to increase traffic on the railway network.1.2 Project-delivery activities: (a) Setting up an owner's Works Supervisor and Integrator to manage and integrate the design and construction of works financed by the Ministry of Transport (MoT) and works financed with Loan proceeds under Part 2; and (b) financing of a technical audit for the works under Part 2.1.3 Promotion of Women's Employment and Stakeholder Engagement. (a) Promoting women's employment in the ENR's workforce through upgrading its childcare facility, the establishment of a female internship program and (b) implementing activities under the [Stakeholder Engagement Plan] to strengthen meaningful stakeholder engagement under the Project, including establishing and disseminating a citizen's charter.1.4. Enabling private capital mobilization (PCM) for the railway sector. Transaction support to ENR in dealing with private parties concerning the private sector participation opportunities in the rail sector.1.5 Decarbonization study (ENR financed): conducting a technical study for developing a decarbonization roadmap for the ENR. Component 2: Track extension, railway signaling modernization, and selected track upgrades to create a railway bypass around the Greater Cairo Area. 2.1 Greenfield Link. Construction of a greenfield link from the Bashteel–Itay El Baroud section to the Marazeeq-Wahat section, including (a) constructing structures (bridges, viaducts) and laying track foundation; and (b) installation of track and signaling.2.2 Marazeek–Wahat Section Upgrade. Upgrading of existing track and signaling modernization from Maraziq to the junction point with the greenfield link.2.3 El Bashteel-Itay El Baroud Section: (a) Upgrading of existing track, construction of a parallel track, and new signaling installation on both tracks on the El Bashteel-El Itihad segment; and (b) upgrading of the existing single track and signaling on the El Itihad-Itay El Baroud segment.2.4 El Itihad-Tafaroa Section: Upgrading existing single track and signaling on the El Itihad-Tafaroa section.