SWOT Analysis of Road
Transport Sector in The Arab
Region
Alexandria , 4 November 2012
Prof. Dr. Ismail Abdel Ghaffar Ismail Farag
President , AASTMT
Page 1
(c) IRU Academy 2012
Presentation Outline
Introduction
Regional legislations and agreements
Transport for sustainable development in the
Arab Region
Insights on Roads and Road Transport in EGYPT
SWOT Analysis in Arab Region
Page 2
(c) IRU Academy 2012
1. Introduction
1.1 Regional Trade: Intra - Arab Trade
Total intra-Arab trade witnessed an overall increase
over the period 1996-2010, equivalent to around
302%.
The increase in the value of trade in transport
services is due to the soaring logistics costs in the
international arena that are correlated with the
price of fuel exports.
Page 3
(c) IRU Academy 2012
1.2 National Transport
Strategy
Develop a comprehensive transport Master Plan inclusive of various
transport modes and related infrastructure.
Emphasize safety, the integration of environmental considerations,
and inter‐modality.
Develop a regulatory framework through institutional building and
organizational re‐structuring
Assess financing strategies with a focus on the participation of the
private sector.
Strengthen and develop better asset management procedures.
Page 4
(c) IRU Academy 2012
1.3 Road Transport
Infrastructure and
Capacity Utilization
Egypt’s road network comprises 91,173 kilometers of roads,
divided into 67,728 of main roads and 23,445 kilometers of
artery roads.
85% of domestic freight and 60% of passenger movement is
carried out by road. By mid-2010, the roads network
expanded to 81,932 km of paved roads.
There is currently no logistics provider in Egypt with a
consistent distribution infrastructure
Page 5
(c) IRU Academy 2012
There is also a lack of services around road based
transportation.
If a network of transit points and connection links were
established, an estimated 86 million tons per year (16% of
internal freight moved by road) would pass through it.
To meet projected usage, Egypt’s roads will require an
additional 11.4 million square meters and a total investment
of USD 8 billion over the next five to ten years.
Page 6
(c) IRU Academy 2012
Major Traits of Transport
Infrastructure
Page 7
(c) IRU Academy 2012
Logistics Performance
Index (LPI) in Arab Countries
Page 8
(c) IRU Academy 2012
2. Regional Legislations
and Agreements
2.1 Regional Policy Centers on Transport
Major transport policy centers in the Arab world
include primarily :
The UN-ESCWA
The Organization of Islamic Conferences
The League of Arab States (which created the Council of 
Arab Ministers of Transport)
Page 9
(c) IRU Academy 2012
2.2 UNECE Transport
Agreements and Conventions
in the Arab World
The United Nations Economic Commission for Europe
(UNECE) Inland Transport Committee created the
framework for intergovernmental cooperation to facilitate
international transport along with improving its safety and its
environmental performance.
The UNECE conventions on transport are concerned with
issues of transport infrastructure, road traffic and road signs
and signals, road vehicles, legal instruments related to road
transport, inland water transport, border crossing facilitation,
transit by road, transport of dangerous goods and transport
of perishable food stuffs.
Page 10
(c) IRU Academy 2012
The Status of the UNECE Transport
Agreements and Conventions in the
Arab World (2009)
Page 11
(c) IRU Academy 2012
The Status of the UNECE Transport
Agreements and Conventions in the
Arab World )Cont. )
Page 12
(c) IRU Academy 2012
3. Transport for Sustainable
Development in the Arab
Region: Measures, Progress
Achieved, Challenges and
Policy Framework
Page 13
(c) IRU Academy 2012
Page 14
(c) IRU Academy 2012
4. Insights on Roads and Road
Transport in EGYPT
Page 15
(c) IRU Academy 2012
4.1 Road Transport
Network in Egypt
key points within a well-planned and sustainable
road transport system:
Promoting the use of public transport •
Vehicle emissions testing and tuning •
Replacing old cars with new ones •
ADOPTING ADVANCED TRANSPORT TECHNOLOGIES •
Electric vehicles •
Page 16
(c) IRU Academy 2012
4.1 Road Transport
Network in Egypt ( Cont. )
Roads constitute the dominant means of internal
transportation for both passenger and freight operations.
Egypt has 52,000 km of paved roads, in addition to a network
of bridges.
The number of passengers increased as well as cargo
transport, reaching 46,288 million tons/km during the year
2007/08.
The number of vehicles registered in Egypt has almost
doubled over the last ten years, reaching almost 6.6 million
in 2005.
About 50 per cent of the total vehicles were registered in the
Cairo metropolitan area.
Page 17
(c) IRU Academy 2012
The Numbers of Licenses Vehicles
by Types from 2005 up to end of
December 2010 in EGYPT
Page 18
(c) IRU Academy 2012
The Numbers of Licenses Vehicles
by Types and Governorate up to
end of December 2010 in EGYPT:
Page 19
(c) IRU Academy 2012
4.2 Operational and Legal
Loads of Trucks in
Egypt
The load on the single front axle calculated by 7 tons •
and single rear by 13 tons, that rides 4 rubber tires.
The load on the single front axle of the trailer •
calculated by 13 tons, that rides the 4 rubber tires.
Equivalent load is calculated on the dual narrow axis •
by 20 tons and riding on the condition that each axis
contains 4 rubber tires that the distance between the
axes less than 2 meters.
Page 20
(c) IRU Academy 2012
4.2 Operational and Legal
Loads of Trucks in Egypt (
Cont. )
Equivalent load is calculated on the wide axis by 13
tons per axle and riding on the condition that each
axis contains 4 rubber tires.
Equivalent load is calculated on the trio narrow axis •
by 30 tons and riding on the condition that each axis
has 4 rubber tires.
The load of cargo transported could exceed the •
range of 5% to overcome the problem of different
weights and packaging.
Page 21
(c) IRU Academy 2012
4.2 Operational and Legal
Loads of Trucks in Egypt (
Cont. )
The length of the vehicle must not exceed the specified 
lengths:
Vehicle with two or more axes is not more than 12 meters.
Vehicle with the joint (Simi Trailer) or more is not more than 
17 meters in accordance with the new traffic law.
Vehicles with a regular trailer no more than 20 meters.
The height of the vehicle including the shipment height must 
not exceed 4 meters from the road surface and the distance
between the bottom of the vehicle and the road surface must
be 28 cm or more.
Page 22
(c) IRU Academy 2012
4.3 Road Sector
Strategy
Develop, construct and maintain an efficient,
safe, well managed network of intercity
freeways in order to:
Support the rapid pace of economic development by providing
access to new development areas (industrial, agriculture,
and residential).
Accommodate the growth in population and social demands.
Prioritize infrastructure projects in view of the above
demands.
Page 23
(c) IRU Academy 2012
4.4 Reform Policies in
the Road Sector
Improve design and construction practices through the use of Performance
Based Contracts (World Bank project support).
Develop an integrated action plan for road safety. (Twining project with the
European Union‐ Germany and Austria)
Introduce a transparent regulatory process for the issuing of “Transport
Operator Licenses” for both freight and passenger, granting access by
the Private Sector to the land transport profession.
Develop regional border crossing (TIR‐under study), and upgrading the
corridors specifications under the UNESCWA agreement.
Page 24
(c) IRU Academy 2012
4.5 Twinning Project in
Road Safety
The project aims at enhancing road safety in Egypt
through the reform of road safety planning and
operations. It covers areas including:
Coordinate National Road Safety Activities
Legislative Reforms when applicable
Institutional Development and Capacity Building
Establish a road safety audit system
Improve standards
Coordinate information W.R.T. road accident
database
Page 25
(c) IRU Academy 2012
4.6 Road Infrastructure
Investment
Egypt raised road construction investments from
US$73.3 million in 2003 to about US$366.3 million
in 2008.
In addition, it raised road maintenance investments
from US$36.6 million in 2003 to about US$146.5
million in 2008.
Page 26
(c) IRU Academy 2012
4.7 Salaries in
Transportation Sector
An average worker in the transport sector cannot achieve the
average expenditure upon his or her family.
The annual salary of a worker in the private transport sector
represents just 71% of the average annual income of an
Egyptian family living in a city, while it represents 39.3% if
the worker is employed in the private sector.
The salaries level explains the reason of vast immigration of
skilled workforce to other Arabian countries.
Page 27
(c) IRU Academy 2012
5. SWOT analysis
in Arab Region
Page 28
(c) IRU Academy 2012
Strengths
High imports/exports rate .
Competitive costs .
Long road network between major cities and villages
High percentage of freight and passengers transported by road
Cheap workforce .
Positive business climate .
Developed road infrastructure .
Page 29
(c) IRU Academy 2012
Weaknesses
Unprofitable road transport sector
Low salaries for the skilled workers
Poor road safety record
Poor road infrastructure and links Between Arab countries
Lack of skilled and trained labor
Bad working condition and long working hours
No laws and regulations protecting workforce
Inadequate implementation mechanism
Complexity of laws and regulations or Judicial framework related to
road transport
Page 30
(c) IRU Academy 2012
Weaknesses( Cont.)
Lack of road monitoring (enforcement of road laws and
punishment application)
Lack of pedestrian regulations
Lack of efficient specialized courts
Low level of integration with other modes of transport (rail,
river, sea)
Poor Multimodal Traffic network
Corruption
High Cost of capital
Lack and inaccuracy of industry data
Page 31
(c) IRU Academy 2012
Weaknesses( Cont.)
Culture of family enterprises
Lack of professional management
Little openness to outside equity partners
Little understanding of global competition
Lack of long term financing
Insufficient road transport companies (public or private)
Lack of co-ordination between road companies and
ministry of transport
Recruitment of unskilled candidates
Page 32
(c) IRU Academy 2012
Weaknesses( Cont.)
Lack of road signs (directions, limitations…etc.)
Trucks overload
Improper loading and lashing
Trucks bad technical conditions
No counter measure
Irregular road maintenance
Page 33
(c) IRU Academy 2012
Opportunities
Growing national/neighbouring economy
Sufficient technical expertise
Sufficient knowledge and access to know-how
Cheap energy
Sufficient environmentally friendly energy
supplies (natural gas and scholar energy)
Large manpower reservoir
Page 34
(c) IRU Academy 2012
Opportunities( Cont.)
Well equipped free zones
Developed banks’ services
Positive business Environment
Privatization of enterprises
Growth of SMEs
Development of private infrastructures
Page 35
(c) IRU Academy 2012
Threats
Poor economy
Unsupportive/combative regime
High taxation levels
Unstable local and regional political situation
Insufficient free trade movements within the Arab
and African region
No unified Arab or African road regulations
No system for transport/logistics operations
developments
Page 36
(c) IRU Academy 2012
Threats( Cont. )
No liberalisation of trade (some treaties not
activated)
Inadequate institutional and regulatory frames
Insufficient funding
Unemployment and social unrest
Lack of transparency and corporate governance
Page 37
(c) IRU Academy 2012
Threats( Cont. )
Delays in implementation of necessary infrastructures
Recent increase in crime rates
Increased number of permanent disabilities that reduce productivity
(productive age groups)
Increased social spending on repair rather than improvement and
development
Lack of data base and analysis of accident reporting (road crash
database).
Lack of school and parents education to create the awareness of
traffic safety rules and importance.
Poor emergency call system.
Page 38
(c) IRU Academy 2012
Priority Training Needs
Which Might Arise from
the SWOT:
To up skill existing workforce
To train young nationals (Male/female)
To recognise needs for additional training
To organise training at lower levels
Page 39
(c) IRU Academy 2012
Page 40
(c) IRU Academy 2012