Cabinet gives initial approval to freight transport privatization + makes some shop owners’ lives easier after Public Shops Law controversy
![](https://enterprise.press/wp-content/uploads/2022/10/cargo_freight_1600px.jpg)
Are we one step closer to privatizing Egypt’s freight transport sector? Cabinet approved in principle the decision to grant a consortium of private companies the operations and management of freight transport in a step to partially privatize the sector, according to a cabinet statement. The Transport Ministry will launch a tender to award the contracts, but there is no disclosed timeline for the launch.
Refresher: A key component of Egypt’s plan to overhaul its railway system is turning to the private sector, which has been in the works since 2018 with the passing of amendments to the Railway Act that allow private sector participation in developing, managing, and operating railway projects. The Transport Ministry then began procedures to establish private-sector companies to manage individual railways, but these plans largely fell by the wayside until last year, when the government was reportedly looking at plans to establish three JVs with foreign rail companies to manage Egypt’s railway network.
ALSO- Cabinet has moved to exempt 48 commercial activities from having to obtain security clearances before going legit, after it approved amendments to a ministerial decree from earlier this month during its meeting on Thursday. The Local Development Ministry had previously issued rules requiring 83 different commercial activities to obtain sign-off from security directorates before receiving official commercial licenses per the newly introduced Public Shops Law, allowing all shops a one year grace period to apply for the licenses to avoid fines and possible jail terms.
Who still needs approval? The 35 activities still requiring security approvals include car dealerships, hotels, arms and ammunition shops, and military uniform shops, Mohamed Al Fayoumi, spokesperson of the supreme committee for licensing public shops, told Enterprise. Kiosks, supermarkets, and other commercial shops were exempt, he added.