Egypt Hikes Train Fares from End of August to Pay For Railway Debt

Egypt Hikes Train Fares from End of August to Pay For Railway Debt

According to local reports, the Egyptian government has declared that it will increase train and metro rates by up to 25% by the end of August in order to pay off the debt owed by the Railway and Subway Authority.

Egypt’s transport minister, Kamel Al-Wazir, said in broadcast remarks that the rise will pay back loans taken out to build the train system as well as offset growing fuel and maintenance costs.

Al-Wazir said that the railway corporation had a total debt of LE83 billion (more than $4.3 billion), some of which had been reimbursed. The Ministry of Petroleum and Mineral Resources is still owed LE5 billion (about $262.8 million) by the authority.

Experts have reportedly indicated that ticket prices have to be increased to pay for the development of the country’s ageing railway system.

The government initially said it would raise fares at the beginning of August, but later decided to delay the increase until the end of the month when “studies on the decision are complete.”

Official statistics by the Egypt’s Transport Ministry state that the three metro lines carry 4.6 million passengers daily, while other trains transport 1.1 million passengers every day.The minister said students and veterans would be exempted from the increase.

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