Abela Egypt offers to manage Talgo and VIP trains for 50% of revenue
Egypt’s National Railways Authority (NRA) is considering an offer from Egyptian catering and services company Abela Egypt to manage, operate, and market its Talgo and VIP trains for 15 years in exchange for 50% of monthly revenues. In return, the company would cover all operating and maintenance costs, a member of the NRA board told Al Manassa.
The source, who requested anonymity, said no offers had been made to manage and operate the railway’s entire fleet because ticket prices are set with the social dimension of the service in mind, given its importance to large segments of the population, particularly low- and middle-income passengers.
Sleeper trains, by contrast, operate under a different pricing model that takes into account the nature of the service, its level of luxury and the facilities provided.
Abela Egypt already manages and operates NRA’s sleeper train fleet, comprising 101 sleeper compartments and 20 club carriages under a 15-year contract signed in September 2023. The company operates four daily round trips between Cairo and Aswan.
Abela is seeking as much as 50% of total revenues, the source confirmed. The NRA plans to negotiate with the company to bring Abela’s share down to a more reasonable level. Under the proposed arrangement, the authority would receive the remaining revenue without incurring any operating costs.
The NRA’s role would be limited to supervision and oversight, ensuring compliance with security and safety standards and operating regulations, providing the necessary railway infrastructure, and setting train schedules to ensure regular service and adherence to timetables, the source said.
The proposal covers the management and operation of Talgo and VIP trains. The NRA owns around 212 VIP carriages and six complete Talgo trainsets, consisting of air-conditioned carriages hauled by diesel locomotives.
Abela’s offer also includes gradually introducing a range of additional passenger services over the contract period to improve the travel experience and raise service standards, drawing on models used in several other countries, the source said.
Among the main proposals is the introduction of premium packages for business travelers. These would include streamlined ticket-booking procedures, dedicated reception areas at stations, and assistance with passengers’ luggage, including porter services, to provide greater comfort and privacy.
The proposal also includes an integrated door-to-door transport service linking train journeys with land transport providers. Options would include limousine services, taxis and public transportation, such as buses, the metro and the monorail, making it easier for passengers to travel to and from railway stations.
Other proposed services include a smart passenger notification system accessible through the railway authority’s app or SMS messages. The system would alert passengers to train delays and platform changes and notify them of upcoming stations, helping them keep track of their journeys and improving the overall travel experience.
On Tuesday, Transport Minister Kamel Al-Wazir said he hoped the private sector would take part in managing some of the country’s luxury trains, as it already does with sleeper services.
“I hope to see greater private-sector participation because when the private sector joins us, it takes some of the burden off our shoulders, particularly because we are not good at management. We are good at building, while the private sector has the qualifications and capabilities to manage better than the government. The private sector is more successful at management and operation,” he said.
The proposal comes days after train No. 134, traveling from Giza to Fayoum, collided with the rear of train No. 2010, traveling from Cairo to Aswan, on Sunday between Kafr Ammar and Al-Raqqa stations in Al-Ayyat. Four carriages derailed and overturned. The Health Ministry said seven people were killed and 125 injured, including the driver of the first train.