EXAMINING THE STATUS OF EGYPT’S RIVER TRANSPORT SYSTEM Dr Islam El-Nakib Arab Academy for Science, Technology and Maritime Transport, College of International Transport and Logistics
[email protected]
ABSTRACT Purpose of this paper This research aims at presenting a comprehensive overview of the river transport sector in Egypt. The sector is facing several challenges and barriers for logistical development. Moreover, the river transport system in Egypt has unique characteristics and abilities to be utilised properly and efficiently. However, there are numerous reasons for establishing a sound logistics system in Egypt which therefore hinder the development of the river transport sector. Design/methodology/approach This research follows an exploratory methodology that aims at discovering the current status of the Egyptian river transport system. An exploratory methodology was followed due to the remarkable lack of information on the river transport system in Egypt. The inductive approach was applied in the study through the comprehensive analysis of qualitative data related to the topic that has been published in various sources in addition to a number of structured interviews that were conducted. Findings The research findings focus on the factors that hinder the development of the river transport system in Egypt. In addition, a comparison of Egypt’s river transport’s system through the use of a conceptual model that shows the ideal inland waterway system is provided. Then the research proposes suggestions and solutions for the previously mentioned obstacles for river transport sector in Egypt, which has been outlined in a descriptive model in order to have an integrated concept for this issue. Research limitations/implications Due to the lack of resources and previous studies on Egypt’s river transport system, the research did not provide technical and legislative issues relating to this transport sector. What is original/value of paper Researches that focus on river transport are scarce and there are numerous obstacles that face the development of river transport system in Egypt. Therefore, this paper is attempting to fill the gap which exists in this discipline. Keywords:
Egypt, Inland waterways, Logistics, River Nile, Trade Development
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1. INTRODUCTION The inland waterways such as rivers, broad canals, narrow canals, detached waterways, and tidal waters are considered as one of the oldest economically and environmentally sustainable modes of transportation (Slob, 1998). In some parts of the world, inland waterways are actually the only mean of transportation available; and with the introduction of barge containerisation, this mode of transport highly supports the competitiveness of the general cargo trade (Camp et al., 2010; IWA, 2011). However, the ability to compete in a global economy is dependent on an integrated transport system as well as a vast array of supporting service activities (Lowe, 2005). These supporting services include distribution-based activities such as a multimodal and intermodal freight transport system composed of modes, infrastructures and terminals (Golusin et al., 2010). Regulation-based activities are also needed such as customs procedures, tariffs, regulations and handling of documentation in addition to transaction-based activities i.e. banking, finance and insurance activities (Golusin et al., 2010; Mihic et al., 2011). The quality, cost, and efficiency of these services influence the trading environment as well as the overall costs linked with transport the international trade of goods (Ivanovic et al., 2009; Chopra and Meindl, 2010). Therefore an integrated transport system that incorporates inland waterways can significantly support trade activity and subsequently the national economy such as in the Netherlands and Germany (Zhao et al., 2010). Egypt has a significant and unique combination of inland waterways which constitutes 3,500 km including Nile River, Lake Nasser, Alexandria-Cairo Waterway, and numerous smaller canals in Delta; Suez Canal (193.5 km including approaches) navigable by ocean going vessels drawing up to 17.68 m (Gray et al., 1998 and CIAWFB, 2011). The River Nile and its associated navigable canals provide important means of transportation, primarily for heavy goods. There are roughly 3,200 km of navigable waterways, about one-half of this total on the Nile, which is navigable throughout its length. The inland-waterway freight fleet consists of tugs, motorised barges, towed barges, and flat-bottomed feluccas two or three-masted lateen-rigged sailing ships (JICA, 2003). Moreover, Suez Canal is 163 km between Port Said on the Mediterranean Sea and Suez on the Red Sea. The canal allows two-way north to south water transport between Europe and Asia without circumnavigating Africa (JICA, 2003). The canal is considered the longest in the world with no locks, compared with other waterways such as Panama Canal (JICA, 2003; Rafimar, 2006). It has the capacity to be widened and deepened when required to cope with the expansion in ship sizes. Moreover, the Canal route achieves a saving in distance between the ports north and south of the Canal, which is translated into other savings in time, fuel consumption and ship operating costs (JICA, 2003; Rafimar, 2006). In order to have an integrated inland transport system in Egypt, it should have strong logistics operations activities between all the stakeholders in the supply chains within the country (Nilsson, 2006). The mode of inland waterways is a dynamic component to achieve numerous advantages if it is optimally utilised by implementing the concepts of multimodality (Camp et al., 2010). Moreover, this will positively affect the Egyptian intra-trade and might be of good use for trading between Egypt and the surrounded countries especially Sudan and the nine Nile basin countries (El-Nakib el at., 2009). However, a significant number of obstacles hinder the potentials of River transport as a part of an integrated transportation system
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in Egypt (Abd El-Khalek, 2009). Moreover, the River transport system is considered the weakest link among other modes of transportation in Egypt (GART, 2007). Thus, this research proposes several solutions for the problems examined concerning the river transport sector development with the aid of a descriptive model, and to conceptualise the factors affecting the river transport sector in Egypt. Finally, the research proposes recommended actions to be taken in order to enhance several factors affecting the development of a sound logistics system for the river transport as a part of the Egyptian transport system. The paper starts with a literature review with a brief review on logistics and supply chain systems in general and the reasons for the absence of a sound logistics system in Egypt. In addition, an overview on the situation of Egypt’s river transport system is presented with highlights on the role of river transport in the integrated modes of transport system in Egypt. The research methodology is then presented to support the aim of this paper through the appropriate research method i.e. exploratory and the data collection tools used. The research findings focus on the factors that hinder the development of the river transport system in Egypt. In addition, a comparison of Egypt’s river transport’s system through the use of a conceptual model that shows the ideal inland waterway system is provided. Then the research proposes suggestions and solutions for the previously mentioned obstacles for river transport sector in Egypt, which has been outlined in a descriptive model in order to have an integrated concept for this issue. Finally the research concludes with the recommended action to be taken for developing the river transport system in Egypt and suggested relevant research areas for the future.
2. BACKGROUND LITERATURE The globalisation of both the production and transportation of goods has had the effect of internationalising the logistics business and supply chains operations (Ishfaq and Sox, 2010) and (Ramanathan, 2010). However, there are numerous reasons for the poor state of logistics in the developing world (Dadzie, 1990). Third world countries are characterised by obsolete production, distribution and logistics/supply chain management regimes, poor transportation infrastructure and inefficient third-party logistics providers (Bruisma et al., 2000; Banomyong and Supatn, 2011). Moreover, uncertainty in demand and supply coupled with long manufacturing cycle time lead to excessive stock holding (Defee et al., 2010). The lack of warehousing facilities, poor information technology and inadequate cost data tend to aggravate the problems of decision making (UNCTAD, 2011). Daugherty el at. (2011) stated that all obstacles in logistics systems could be caused due to lack of business approach, governmental control over transportation infrastructure, unawareness of logistics and supply chain concepts, mismanagement, political instability, national rivalries, bureaucracy and shortage of investment funds. Reeves et al., (2010) and Jane (2011) also added the lack of expertise and training for implementing modern methods of logistics management and ineffective organisation structure, as the major obstacles to the development of logistics in most of developing countries.
2.1 An overview There is a steady growth in the intra-trade being transported between the major Egyptian seaports with almost all of these cargoes being transported by rail/road (MOT,
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2009). Since Egypt is one of the most promising emerging economies, its industrial zones remain the focal point of its increased economic activity. However, there are plans to establish seven additional industrial areas around Cairo and some of these districts will be centres for small and medium industries. In addition there are about 480 factories expected within 2010 (MOFTI, 2011). Trade between the Egyptian cities would be fast and reliable by reviving the river Nile which is an ancient role player, and once again makes full use of this unique natural resource as the ideal medium for cargo transportation (MOFTI, 2001). Thus, river ports are one of the key elements that make up the river transport system. The current river ports in Egypt are not considered as the modern river ports in terms of design or equipment required for cargo handling operations, but called the term port symbolically as consisting mostly of platforms and storage areas only (Mahony, 2011) and (MOFTI, 2011). Egypt’s river transport network consists of 1,850 kilometers of navigable waterways; there are 44 river ports, in addition to 10 anchorages, including the 8 berths for loading and discharging of different types of cargo (MOT, 2009). Furthermore, 1.3 million tons of cargo (which is representing less than 1% of all inland transport) is shipped by river and the government of Egypt is aiming to increase this percentage to 10% by 2011 (Mahoney, 2011). One of the key elements of Egypt's transportation strategy for the future is renewed reliance on river transport through the upgrade of night navigation on the Nile (GRTA, 2007 and Abd El-Khalek, 2009). The rest of the network is occasionally used for transporting relatively small quantities of goods. Therefore, the potential for development is clear; river transport is one of the most promising opportunities in developing Egypt’s multimodal transport network. The government is currently looking into developing four new routes totaling 1,790 kilometers. The barges’ current capacity of 800,000 tons is fully utilized by existing demand, and this subsector offers significant investment opportunities as demand is projected to increase steadily by an annual rate of 4.8% to reach 2.1 million tons in 2026. Several river ports have been earmarked for development in order to handle future demand for passenger service and cargo shipments. The ports also require new service and storage facilities (GAFI, 2011).Table (1) compares the exports and imports of goods transported by river Nile between 1990, 2012 and 2020. Table (1) Goods transported by River Nile Main products
1990 Petroleum 21115 Constructions Iron 308 Agriculture 823 Industrial 787 Total 1918 Source: Abd El-Khalek (2009)
Exports 2012 21694 5511 5014 9735 41954
(1000 Tons) 2020 16235 9210 10135 35580
1990 330 2712 8526 4354 15922
Imports 2012 54 37294 21305 6256 64909
2020 13821 16314 10500 40635
The use of river transport has become very weak due to the numerous barriers which will be further discussed in this research. Thus, the main barrier however is the lack of an integrated logistics system with the various industries and other modes of transport. The inland waterways transport sector specifically the river Nile, transports numerous commodities such as petrochemical products, coal, and some minerals like phosphate
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and aluminum. Table (2) displays the types of commodities transported by using the river Nile and its volumes. Table (2) The current river ports in Egypt with throughputs #
River ports
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
Iron and Steel Abu Zaabal Fertilizers Kima Tanash Al Jazeera Al Shima Al Nasrab Aqaba 1 Aqaba 2 Al Biyara Edfu Sugar Al Mowareda Ferrosilicon plant Al Sabaiaa Armant Sugar Qaws Sugar Dishna Suger Nag Hammadi Sugar Aluminum River Al Belina Gerga Sugar Assiut Thermal Station Petroleum Port Assiut Cement 1 Assiut Cement 2 Bmnaqbad Fertilizer plant Nile Cotton Ginning Bani Khalid Samalout Tipin Limestone Al Tebeen El Nahry Tipin for coke Kawneya Cement Nile cement Wosol Samalout Hawamdya Sugar factory Moedat factory Al Masara Tora Ether ElNaby Imbaba Silos Sulphur Phosphate - Ismailia Canal Renaissance - Nubariya Canal Barricade - Nubariya Canal
Storage in (Tons) 3000 15000 2000 2000 3000 1000 1500 2000 3000 15000 2000 180 500 30000 30000 50000 10000 50000 60000 10000 40000 35000 Tanks 20000 60000 50000 7000 10000 70000 17750 125000 7000 9000 7000 1000 7000 4000 5000 20000 60000 40000 60000 80000 5000
Throughput Exports
Imports
Fertilizers Aswan mud Mud Mud Phosphate Mud Mud Molasses Molasses – Sugar Phosphate Ferrosilicon products Crude phosphate Molasses – Sugar – Sugar Cane Molasses – Sugar Sugar Molasses – Sugar Brick – Aluminium Passengers – Vehicle Molasses Solar – ceresin – petroleum Fertilizers Fertilizers Cotton Limestone Iron products Cook Bulk Cement Packaged Cement Molasses – Sugar - spare parts Equipment Aluminium Products Cement Wheat Sulphur Sulphur Aluminium Products
Petroleum Phosphate Fertilizers Aswan mud Phosphate Chemicals – sugar Fuel – limestone Phosphate Coal Fuel – sugar – limestone Production equipment Sugar Sulphurs – limestone – spear parts Brick – Aluminium – coal Passengers - Vehicle Stones - fuel Petroleum Petroleum Petroleum Phosphate - sulphur Cotton Limestone cook - limestone Packaged Cement Limestone Fuel – molasses - sugar Raw materials Aluminium Products stones - powders Phosphate Sulphur Production equipment
Source: GRTA (2007)
2.2
Integration of transport modes
The World Bank (2005) mentioned that the major freight patterns can be established in Egyptian freight traffic. For the majority of products, Cairo attracts the largest share, followed by Alexandria, Damietta and others. Figure (1) presents the connections
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between the main cities by using road, rail, or river (GART, 2007). Cairo region accounts for 68.3% of total container imports and Alexandria accounts for 28.3% (CAPMAS, 2011). Cargo is overall transported between limited number of cities/regions and the greater Cairo region is the major centre of all traffic. Cairo and its surrounding regions is undoubtedly the economic and industrial centre of Egypt, this fact was translated into concentration of transport infrastructure development, where transport corridors are constructed to link the capital to its main international gateways, in particular the port of Alexandria, Damietta and Port Said (Ministry of Transport, 2008). Figure (1) Inland waterways integration with main rail/road routes
Source: ENIT and JIKA (2006)
Given the ever increasing consumption patterns in the capital, Cairo is also connected to other important production centres in Egypt. These corridors are dominated by road, which accounts for approximately 91% of all freight movement, while the railways only account for 8% and the inland waterways constitutes 1% approximately of the total freight transported per year (CAPMAS, 2011). The railways and waterways authorities have consequently started major reconstruction programs to increase their share in total freight transport, emphasising the need for efficient integration of the mode in door-todoor transport chains (Ministry of Transport, 2008). This strategy is being implemented via the development of intermodal terminals and dry ports for rail and waterways transport, and via the upgrading of the available rail and waterway transport infrastructure (Buuisma et al., 2000; IRPT, 2011). On the other hand, the navigational routes of the river Nile is constituted of three parts, the first part starts from the North of the High Dam in south Aswan to Cairo, the second part starts from Cairo to Damietta, and the third part starts from Cairo to Rashid (GART, 2007). These three parts may be interrupted by many cataracts (rapids) and locks as well. A description of the three parts is provided in Table (3).
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Table (3) Description of the navigational channels of the river Nile
1st Navigational Channel 2nd Navigational Channel 3rd Navigational Channel 4th Navigational Channel 1st Navigational Channel 1st Navigational Channel
From – To First part (Aswan – Cairo) Aswan High Dam – Esna Esna rapids – Naga Hamadi rapids Naga Hamadi rapids - Asyut Asyut – Cairo Second part (Cairo – Damietta) Delta rapids – Damietta Third part (Cairo – Rosetta) Delta rapids – Rosetta
Length (km)
Width (m)
169 190 187 414
639 570 1060 533 – 1150
228
217
200
n/a
Source: (GART, 2007)
North of Cairo is the Great Nile Delta 160 km long and up to 185 km wide, which contains 60% of Egypt's cultivated land and extensive areas of swamps and shallow lakes (ESIS 2011). Two tributaries, Damietta on the east and Rosetta on the west, each 240 km average long, carry the river's remaining water (after irrigation) to the Mediterranean Sea. Regular steamship service is maintained on the Nile between Alexandria (reached by canal) and Aswan (GART, 2007).
3. RESEARCH METHODOLOGY This research follows an exploratory methodology that aims at discovering the current status of the Egyptian inland waterways system. An exploratory methodology was followed due to the remarkable lack of information on the Egyptian inland waterways. The inductive approach was applied in the study through the comprehensive analysis of qualitative data related to the topic that has been published in various sources in addition to a number of structured interviews that were conducted with some officials in the River Transport Authority, Ministry of Transport and managers from several transport agencies, shipping lines and freight forwarders companies working in Alexandria and Cairo. The interviewees were general managers with a range of experience between 10 – 20 years. The interviewees were first contacted by phone and then a copy of the interview questions was sent by email prior to the actual visits. Interviews were scheduled over a two weeks period and conducted on site and each interview lasted between one and one and half hour. It merits mentioning that including open-ended questions in the structured interviews was intended to give the interviewer ample chances to discuss matters with the interviewees, a necessary prerequisite to exploring the whole issue, with particular emphasis on the current and future status of river transport system and policies. Content validity was used to assess the validity of the data collection instrument through an informal pilot test that targeted the government officials and managers to get their feedback on the questions’ wording and the extent to which questions provide suitable coverage to the purpose of the study. Minor changes of wording were performed to clarify some questions. As for the reliability of the questions of the interviews, testretest reliability was conducted by having the same interviewees answer the question of the interview after a two month period to examine the stability of the responses.
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The test-retest shared that the responses were highly consistent with the first interviews. Thus, reliability was established.
4. RESEARCH FINDINGS 4.1 Barriers facing the logistics of river transport system development in Egypt There are numerous problems and difficulties facing river transport development in Egypt. The author has presented comprehensive overviews based on structured interviews with officials in the River Transport Authority, Ministry of Transport and managers from several transport agencies, shipping lines and freight forwarders companies working in Alexandria and Cairo. This is to determine the main obstacles facing the utilisation of river transport within the integrated transport system in Egypt. In addition, proposed conceptualised actions and recommendations to be taken will be presented in the following sections. According to Larbi Sobhy, Owner's Representative of North Africa - CMA-CGM (personal communication. 17 May 2011), he stated that the nature of the navigational channel of the River Nile and its features whether related to the channel itself or its infrastructure impacts the efficient performance of the river transport system. This is presented in the decrease of the water level in the navigational channel by 1.50 cm and for long period of time that causes navigational difficulties in the operation of vessels, which therefore imposes certain limitations on the volume of cargo carried that negatively impacts the river transport economics. Moreover, accidents are more likely to happen as a result of the decreased water level. In addition, he mentioned that the existence of locks and bridges causes some congestion for the inland waterway traffic as speed is reduced at these points. Moreover, the absence of connections between the different navigational channels leads to an unused network of inland waterways navigation. In addition, the difficulties of night navigation impacts on the operational hours of the inland waterways' fleet and its productivity. Lastly, the lack of navigational aids that should support the vessels by navigational traffic signs and the lack of updated navigational maps emphasising the depths of the River Nile, its locations and geographical description present a challenge to navigation in the River Nile. Hamdy Barghout - Business Development Manager at EGYTANS (personal communication. 15 June 2011) highlighted that the lack of sufficient river ports along the navigational channel highly impacts the development of the inland waterways transport development in Egypt. This results in an increase in the voyage time taken and an increase in the operational costs of the vessels as stated by JICA (2003). In addition, he also stressed on the absence of specialised labour force in the inland waterways transport sector leads to increasing stopping periods. Mainly, this lack of specialised labour force is a result of the migration of the labour force to other transport sectors such as the maritime transport sector due to better financial incomes. Mohamed Motrash, Senior manager at Yang Ming Egypt – Finmar Shipping Company (personal communication 18 May 2011) said there is a high competition from the other modes of transport in Egypt. This is represented in land transport in terms of passengers or cargo despite its high costs and negative impacts on the environment if compared with inland waterways transport. Moreover, the majority of the loading space in vessels for the return journey is unused. This is due to low volumes of cargo available, inability
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to consolidate available cargo, low indigenous private sector participation in the industry, high cost of handling containers due to overstay and demurrage charges and low port efficiency and weak management practices. Ramy El-Bandarawy, Project Manager – Ocean Express Agency (personal communication 20 June 2011) criticised the multi-designated authorities for the sector. The inland waterways sector is supervised not only by the Ministry of Transport but also by the Ministry of Agriculture, Ministry of Irrigation and Water Recourses, Ministry of Tourism, Ministry of Foreign Trade and industries, and Ministry of Interior. All these ministries are struggling to make an efficient coordination to influence the overall performance of the inland waterways productivity. Thus, the laws and legislations are confected which led to the unclear strategy for investors. Therefore, the author investigated the elements which constitute an ideal river transport system in order to be used as a benchmark to compare Egypt’s river transport system as part of data collection process which is primarily focused. According to Karim Abo ElKher, President of River Transport Authority - Egypt (personal communication 25 May 2011) and Sohir Hamdi, Advisor at River Transport Authority - Egypt (personal communication 25 May 2011) the author was able to design two conceptual models to demonstrate the actual status of river transport system in Egypt and to reveal the current status of the Egyptian domestic trade using river Nile. The first conceptual model, shown in Figure (2), is illustrating the elements which constitute an ideal international river transport system while the second conceptual model, shown in Figure (3) is illustrating the current status of the Egyptian river transport system on the basis of the elements mentioned on the first model. Figure (2) Conceptual model of the elements constituting an ideal river transport system
+
Economics
operational Public aspects awareness
Logistics
Developing strategies
Marketing Technology Management
Social
Inland River waterways Transpo rt system Transport
-
International Conventions
National Security
Pollution
Hydrograph Water Level
Source: The Author.
As shown in the previous figure, the conceptual model demonstrates the effect of a number of elements which determine the existence of an ideal inland waterways system. It actually illustrates the balance between the different elements to form an ideal system. The plus sign is referring to the controllable elements that could be positively develop and improve the overall system of inland waterways, while the minus sign is referring to the uncontrollable elements that should be neutralised in order to support any potential
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plans for development. For instance, a country can easily control its operational aspects, logistics and strategies to develop its inland waterways system but on the other hand, it cannot easily control or influence the international conventions relating to its water resources especially if it is shared with other countries. Therefore, it could be said that although there are a number of controllable and uncontrollable elements, an ideal inland waterways system can still exist by balancing the relationship of these elements. On the other hand, to illustrate the current status of the Egyptian inland waterways system, the author designed another model, shown in Figure (3) to compare the Egyptian situation on the basis of the elements mentioned in the first model. Figure (3) Conceptual model for the current situation of the Egyptian river transport system
operational aspects
+
Logistics
Economics Technology
Social
Inland River Transpo waterways rt system Transport
Public awareness
Developing International strategies Conventions
National Security
Pollution
Hydrograph Water Level Marketing Management
Source: The Author.
As it is shown in Figure (3), it is easily recognised that there is a clear difference between the first and the second model. The balance that is illustrated in the first model does not exist in the second model which indicates the imbalance between the elements that result in an inconsistent inland waterways system in Egypt. Many elements are unavailable, and even the possible elements are facing severe shortages and challenges. Therefore, there is a direct relationship between the decreasing volume of cargo using inland waterways and the absence of a sound logistics system. However, the absence of the logistics system is not the sole reason for this fatal result, there is another set of problems related to the river transport sector which is a major contributor to this situation. The river Nile is a valuable asset which should be used properly for the benefit of the Egyptian trade. If there were proper scientific plans undertaken by the authorities to fully utilise the river transport like other countries e.g. Germany and the Netherlands, the intermodal transport in Egypt would take the Egyptian trade to the next level. Although there are projects made to develop the river transport sector, but their execution process is very slow and ineffective (Abd El-Khalek, 2009). The projects related to the river transport sector are not given the same importance as other modes of transport e.g. rail/road or maritime transport.
4.2 Solutions for river transport sector in Egypt Ahmed El-Akkad, CEO of Mahony Shipping Company (personal communication 2 June 2011) has proposed general solutions for developing the river transport sector in Egypt. He stressed on improving and enhancing the navigational routes for the River
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Nile, as well as the fleet of river transport with appropriate communication and information devices located alongside the River Nile. He added, it is the time for adopting the concepts of multimodal transport and to include the river transport as a part of door-to-door transport. Moreover, the coordination is required between all the designated authorities of the inland waterways in Egypt for having one corporate strategy for the short, medium, and long term plans. Furthermore, it is necessary to equip the river transport ports with advanced devices and equipment, such as: winches, cargo handling equipment, cranes, floated winches, pipelines for the break bulk cargo and connecting these ports with the major maritime ports in the country. Finally, providing the navigational routes with a proper network of navigational signs, aids, and lights, alongside the route to implement the international safety standards for operating vessels within the river are necessary measures to be taken into consideration. There are recommended logistical actions to be considered for river transport development in Egypt. Tamer Mousa, General Manager of Total Logistica Company (personal communication 18 June 2011) suggested to apply several considerations within the river ports operations such as: a place to park units, for the waterways mode this place is called a fleeting area. Barges are moored in that area after being cut-out from a tow awaiting access to a terminal to be loaded or unloaded. A place to service the units, barges and towboats are frequently damaged in use and also they are regularly inspected by the coastguard resulting in a need for repairs and other services such as cleaning. In-stream servicing, a truly unique feature of the inland rivers transportation mode is that a towboat with a tow of, for example, 35 barges need not stop to add or remove barges, change crews, take on fuel, receive groceries, and such. There are servicing companies which specialise in providing these unusual services. Materials handling and storage at inland river ports, there is usually an interruption of a linkage between transportation modes because of the disparity of rate of delivery between modes. For example, about 58 truck loads are required to load/unload a standard barge. That interruption is called materials handling which is in fact specialised transportation for very short distances. Furthermore, Said Abd elKhalek, Former Director of River Transport Institute - Cairo (personal communication 14 May 2011) referred to upgrade the industrial and commercial activities, inland rivers ports. Moreover, he urged the pairing of transportation modes can also be interrupted to insert a wide variety of industrial and commercial activities in the complete river port. These are features which are found in the very large port and they are also features which should be considered for inclusion in the very long range plan for ports which are presently average to small in size. Also, he stressed on utilising the space for these features should preferably be provided in the master plan in a location where they will interfere least with the basic multimodal transportation and distribution centre characteristic of an inland river port. In addition to industrial and processing plants, the complete river port with its employment of several thousand persons can also include restaurants, service stations, branch banks, fire station, and such. In addition, the management of river ports is a legal entity of a state with a charter held by the county. However, some very successful, excellent, and in a few cases very innovative, inland rivers ports are privately owned and managed. For the publicly owned port the managing body can be either an authority or a commission. The difference varies from state to state but in general an authority has more management and legal autonomy than a commission. In almost all cases, the managing body includes
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a board of commissioners composed of appointed citizens and a paid staff under the control of a port's directors. Therefore, the suggestions and solutions discussed above resulted in the fact that developing logistics in Egypt requires a holistic approach encompassing a long-term strategy. For this purpose the author applied a descriptive model in order to have an integrated concept for this issue. The model suggests that development of an efficient logistics system in Egypt requires integrated efforts of, and inputs from, four sources: the government, private sector (carriers, exporters, ship owners, and freight forwarders), academics and researchers, and regional/international sources. While the first three are primary sources within the country itself, the fourth is a secondary and external source. Figure (4) presents the integrated descriptive model for facing the challenges of the inland waterways logistics development in Egypt. The governmental part is concerned with three of the major challenges in developing and carrying out logistics strategy: stretched infrastructure; fragmented markets; and inefficient distribution. This is also true for Egypt. In recent times, the government of Egypt has taken some steps to upgrade the nation’s transport and telecommunication infrastructure. More roads and bridges have been built and the telecommunication system has been upgraded. The private sector is constituted of many parties within this model such as: carriers, exporters, ship owners, freight forwarders, financial institutions and others. Logistics is marketing oriented and, as part of the company’s marketing efforts, it plays a key role in satisfying the firm’s customers and achieving a profit for the company. It is the business and the industry sectors that tend to gain most from an efficient national logistics system. Hence, in a resource-scarce nation such as Egypt, business and industrial organisations must play an active role in improving the logistics system capabilities by associating themselves with the government level activities. Figure (4) Integrated descriptive model for Egyptian inland waterways logistics
Governme nt
Private Sector
Primary Source
Primary Source
Academics & Researcher s Primary Source
Cooperation and coordination
Facing challenges and solving problems to archive the goals
Development of Inland waterways Logistics system in Egypt Source: the Author
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Regional & International sources Secondary Source
The academics' and researchers' part should consider the selection of appropriate technologies and their effective and efficient utilisation have always been critical issues for developing nations. Researchers and academics can provide comprehensive perspectives as well as independent empirical analysis on topics such as a country’s need and capacity for implementing technology and the roles of government and private sector in shaping policies. The regional/international sources part, that broad-based co-operation between nations, could be useful in facing challenges to development. This is also true for logistics system development in Egypt. While co-operation with relevant agencies in more advanced nations in the region can provide a historical perspective of the development process, tested knowledge and general guidance about the dos and don'ts, sharing the experiences with similar bodies in developing countries could provide guidance in solving problems unique to these countries.
5. CONCLUSION The urgency of significant combination of inland waterways in Egypt was pointed out. Logistics plays a critical role in the recovery of the inland waterways sector and economy as well. International and domestic trade, which will have a major impact and will in fact be one of the drivers of economic growth, will depend to a large extent on the availability of infrastructure alongside the River Nile. The research figured out many factors that hinder the development of the river transport system in Egypt. The absence of local and foreign investors, the difficulties in different aspects e.g. technical, logistical, legal and operational in the river transport system are making the utilization of the river transport system inefficient. In addition, a comparison of Egypt’s river transport’s system through the use of a conceptual model that shows the ideal inland waterway system is provided. Then the research proposes suggestions and solutions for the previously mentioned obstacles for river transport sector in Egypt, which has been outlined in a descriptive model in order to have an integrated concept for this issue. The greatest obstacle for development or change is not admitting the need for it. Since the Egyptian authorities, companies and logisticians seem to be aware of the problems and challenges which need to be solved, developing an efficient logistics inland waterways system should not be difficult for these parties. However the key question is whether there is a serious interest in overcoming these challenges or not before it is too late. Logistics can potentially become the most important source of cost and quality advantages available to companies in Egypt.
6. SUGGESTED FUTURE RESEARCH In order to establish a reliable and efficient intermodal transport system in Egypt, the current situation of all the transport modes in this country need to be studied. Designing an integrated transport network would be a significant research area with emphasising the river transport element. In addition, investigating the management and operation of the river ports would be vital to support the Egyptian transport strategy. Training and developing the human resources would be an essential part to sustain a competitive performance and productivity of the river transport sector.
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ACKNOWLEDGEMENTS The author would also like to thank the participated officials directors and managers from ministries, authorities and companies in Alexandria and Cairo for their precious collaboration in the research.
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