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Country
Title
Duration
Function
PROJECTPROPOSAL
STRUCTURAL REFORM PROGRAMME
(TRANSPORTSECTOR)
MINISTR Y OF PUBLIC ENTERPRISE SECTOR
ARAB REPUBLIC OF EGYPT
Arab Republic ofEgypt
Structural Reform and Coordination Unit (SRCU) (Transport sector) at the
Ministry of Public Enterprise Sector(MPES)
3 Years
Speeding up the structuial reform program for different public sector
enterprises operating in the field of transport, cargo handling and relevant
services and promoting the role of the private sector in providing these
services in order to enhance the efficiency of export and import industry
Government Sector
and Subsector Transport
Economy and foreign trade
Government Implementing
Agency Ministry ofPublic Enterprise Sector
Estimated Starting
Date November 1995
USAID Contribution
UNDP Contribution
} $ 840 000
ESCWA Contribution (in kind - to be decided later)
ARE Contribution LE 838 000
Total
A- CONTEXT•
1- Description of the Sub-Sector
The sub-sector of this project is the transport service industry with special
emphasis on companies providing services in the fields of inland transport, cargo handling
and/or transport logistics In Egypt the Ministry of Public Enterprise Sector (MPES) was
established in 1991 Until then, the reforming of all public sector enterprises in Egypt
came directly under the responsibility ofHE the Prime Minister, through a liaison office
called the Public Enterprise Office (PEO) This office was intrusted with establishing
policies for the framework of restructuring all public sector companies as a whole
However, with such vast diversified activities in almost all fields of the economy of about
314 companies, the PEO was not considering detailed specific problem-areas on sectorial
basis However, after establishing the MPES, the responsibility for reforming the entire
public sector enterprises has become more defined under the control of one governmental
body through several holding companies, the PEO and a council of special advisors to the
Minister
Over the past few years there have been continuous complaints from export and
import industry regarding severe delays and unnecessary cost incurred on foreign trade
during the flow of cargo trough Egyptian ports , such problems are only confined to cargo
handling companies at ports but extend to cover the whole chain of inland transport including
storage, loading and unloading facilities and transport logistics
Meanwhile, the MPES in its efforts to reform the different public sector enterprises
has been confronted with acute financial and operational problems facing most of these
companies
To examine detailed specific issues related to each sub-sector, as in the case of
transport, the MPES has embarked on outside technical assistance through ad-hoc advisory
consultancy services from international agencies In that context and through the technical
assistance program of UN-ESCWA to member countries, and during the past two years 3
advisory missions have been provided covering the following fields
j- Freight Road Transport Industry, Scope for Development ofPES
(March 1994),
li- Tariff charges of Different Services in Egyptian Ports (comparative study with
ESCWA countries) (October 1994),
in- Cargo Handling in Egyptian Ports (June 1995)
These thiee reports have identified several bottlenecks in the whole chain of transport
of goods including cargo handling at different Egyptian ports Such problems are having
severe negative impact on Egypt foieign trade as a whole with increasing costs of all imports
and creating unfavorable envnonment for marketing Egyptian exports
The reports included several lecommendations regarding each company group
operating in specific field with special emphasis on incieasing operating efficiency and
decreasing financial liabilities Although some immediate action plans were foreseen,
however, a more detailed analysis through in-depth studies addressing different problems was
imperative on both macro and micro levels In order to ease up cargo handling problems at
ports, relevant issues must also be tackled such as custom procedures, double handling, the
establishment of inland cleaiance depot and the introduction of multimodal transport system
The MPES although endorsed these recommendations in principle, it is however
anxious to see the Structural Reform program reaching its final stages, especially for those
group of companies that are not only practising severe financial operational problems, but
also are hampering the development of other sectors, especially import and export industries
in the case of transport and related services companies
this objective can be achieved through a well coordinated program that comprises three
elements
i- Establishing a management and cooidmation unit for problem identification,
operational management improvement and setting up action plan
11- Providing technical support ( equipment / know how) that may be required
in- Bringing those companies to a marketable level (final stage of privatization)
For the program to be effective and to achieve its objectives within a limited time
span, it will be only covering one company from each sub-sector and hence can set a
successful criteria to be followed in similai cases
2- MPES Strategy
The MPES is having an overall responsibility towards the structural reform
program of all public sector enterprises In order to achieve these objectives the Ministry
has adopted, for these companies, an ambitious program with the following objectives
to achieve high rate for the utilization of existing facilities,
to limit the financial liabilities on the treasury,
to allow a wider role for the private sector in providing relevant services,
4
to create the atmosphere for providing new job opportunities,
to provide opportunities to deal with international markets, to adopt modern
technologies and to attract foreign investment,
to solve the problems regarding debts to banks,
to create a better environment for activities in the stock maiket,
The overall strategy principle of the MPES calls for a policy giving the private sector
the opportunity to undertake many of the economic activities of the government
3- Prior and on-going Assistance
Technical co-operation provided in the fiamework of the United Nations
Development Program (UNDP) and the United States Agency for Development (USAID) on
all aspects of the structural refoim program dates back to 1990, with the main thrust of this
co-operation was to advise and assist the Ministry in technical matters to achieve its goals
The main objective of the co-operation program was to enhance the capability of the
Ministry's technical staff and bring them up to high level of development achieved in this
field
4- Institutional Framewoik foi the Subscctor
The government implementing agency Tor this project will be the MPES which is
responsible for the whole structural reform program of all public sector companies operating
in almost all fields of the economy In the field of transport, companies concerned cover the
following activities
fi eight and passengei transport,
Road, river and manne tianspoit,
cargo and container handling,
warehousing,
repair, maintenance and building of vehicles, tugs, boats, vessels and ships
logistics shipping and forwarding agents
B- PROJECT JUSTIFICATION :
1- The Pi esent Situation
The newly established MPES is legally entitled to assume the responsibility of a wide
5
spectrum of activities In the field ofpassenger and freight transport, cargo handling and
othei directly related activities, there are 26 operating companies under the direct
responsibility of 3 holding companies as follows
a- Freight transport
5 road transport
2 river transport
1 marine transport
b- Intei-city passenger transport
4 road tiansport
c- Caigo handling and warehousing
2 genei al cargo
3 container terminal
1 warehousing
d- repair, maintenance and building
4 marine transport
1 road transport
e- logistics
2 shipping agents
1 marine (forwarding)
As foi dealing with cai go handling, especially bulk cargo like grains and coal there
are other specialized public sector companies that are not included in the above group Theie
are also other public sector companies and governmental departments that are directly or
mdnectly involved in the piocess of cargo handling at different ports
Although the Egyptian lailways is also involved mthe field of tiansport, nevertheless
its share in freight transport is only maigmal, reaching less than 10% of total volume of
fi eight transport In the field ofroad transport, beside these public sector companies, there is
also the private sectoi playing a very important role in providing these services, through
individuals opeiating in the foim of co-operative societies
At the moment theie is virtually no peimanent staff employed by the MPES to
undertake the full buidcn of the reform progiam, particularly in the field of transport, as its
role is only temporary till achieving the final stages of this program Both the advisory group
and the PEO aie having huge burden in examining detailed problem areas of such vast
number of multi-sectonal entei prises that cover almost ail economic activities in the country
Within each sectonal group of companies there are however urgent problems that
would require in depth analysis to alleviate the problems faced by these companies and to
speed up the whole structuial refoim piogram and to enhance economic development
through facilitating a steady flow of exports and imports at Egyptian ports
Previous studies on some of these issues that were initiated by the MPES and
performed through technical advisory services of UN-ESCWA have recommended the
establisliment of a special unit within the Ministry to act in an advisory capacity to the
Mirustei and to undertake the responsibility of setting up a comprehensive program that
would set up an example for achieving the full range ofactivities finalize the structural reform
program for a set of selected tiansport and cargo handling companies and to tackle some
problem areas related to the flow ofcargo at different ports in an effort to drive import and
export industry
The main concern of the MPES at tins stage in that respect is twofold, first to
develop and implement a strategic phased plan to finalize the different stages ofthe structural
reform program of selected companies operating m this field and to take measures with
other concerned companies to assist in speeding up the handling and transport of cargos at
different ports
In view of the transitory nature role of the MPES and the lack of expertise to
handle such specific issues, the MPES has opted establishing a temporary unit ofa limited
number of highly qualified personnel with international experience supported by appropriate
local experts, and/or expatriate and local consultants in specific cases, to assume the full
responsibility of implementing the required program
2- Expected Aims of thcPioject
The project aims at impioving the operational and financial performance ofa selected
set of companies providing services in the field of transport of goods and passengers,
handling ofcargo and their logistics to bring them to a marketable level The initial stage will
be problem identification through examining demand and supply issues, operation
7
characteristics, technical matters, management issues, operating cost and revenues and so
forth the second stage will concentrate on strategic issues which will be followed by
operational management plan and the finally will be the implementing phase
It is also expected that modular seminars and workshops for mid and high level
managerial staff will take place as a part of an overall human resource development
piogram for this particular group of companies The project will also enhance data
acquisition and wider use of management information and decision supporting systems
The issues pertinent to companies dealing with general caigo and container handling
at different ports will not only cover the performance of these companies but also other
organizational and administi ative matters at ports that hamper thewhole process of cargo
flow at different ports
3- Target Beneficiaries
Direct beneficiaries would be these companies operating in the fields of freight and
passenger transport, cargo handling, shipping and forwarding agents and all other directly
related activities Piofessionals especially those at managerial levels would benefit through
specially tailored seminars and workshops Development of an adequate efficient transport
system would provide an incentive to industrial, economic, social and agricultural progress m
the country and benefit the entire population
4- Project Strategy
The pioject stiategy is to assist the MPES in its effort in the structural reform
program of different public sector enterprises by bringing a selected group of transport
companies to a marketable level thiough a program managed by a Management and
Coordination Unit based on the following
defined problems, needs, objectives, criteria and methodology,
a system oriented approach based on pioblem impact and priority analysis,
a structured workplan,
a follow-up procedure,
periodical evaluation of performance
5- Special Considciation
The project aims at speeding up the piocess of the structural reform program of
I J
the public enterprise sector and related activities companies and hence contribute to
promotion of the role of the piivate sector in transport and handling of goods The project is
also aiming at incieasing the overall efficiency of the whole transport chain, thus improving
exports competitive environment and ieducing financial burden on imports It will also
develop the managerial capabilities at concerned company level
6- Countcrpait Support Capacity
National counterparts who might have been employed by the MPES, or those who
are already employed in the selected companies, could be assigned by the Ministry as the job
may tequire Priorities of the team members of the MCU will be given to specialized
nationals that would fulfill job requirement
C- DEVELOPMENT OBJECTIVES
The major objectives of the project is to provide an efficient and economic transport system
as a mean to development in all sectors of the economy It will also enhance managerial capabilities
tlirough providing opportunities for applying modern technologies The project would provide the
opportunity for improving competitiveness of Egyptian foreign trade
D- IMMEDIATE OBJECTIVES OUTPUTS AND ACTIVITIES
1- Immediate Objectives
The project is expected to achieve the following objectives
a- Assessment of the performance of the related companies, quantitative and
qualitative over the past 5 years This would include reviewing facilities conditions
(infrastructure / equipment and or fleet) capacity, operational conditions, manpower
operating costs versus revenue, financial situation, market opportunities, competition
with other operators etc Comparison would be made with other internationally
accepted performance indicators operating under similar environment in developing
countries Prevailing rules and regulations governing the operation of companies in
providing services will be also reviewed
b- Identifying bottlenecks at each type of service provided by the company and
possible proposals for increasing efficiency
c- Examining strategic issues, options and scenarios with decision makers to
come to agreement in possible paths to be followed
d- Formulating an operational management improvement plan setting up
detailed action sub-plans to bring these companies up to a maiketable level
e- Implementing such plans with continuous assessment and measui mg
development achieved, with the introduction ofadjustment ifrequired and reporting
on each stage
2- Outputs
a- Reports on the present status of companies operating in each sub-sector
Freight transport ( road - river )
Intercity passenger transport
Cargo handling, container terminal operators and warehousing
Repair, maintenance and building
Logistics
b- Reports on related issues of theselected group of companies like demand and
supply of different services, operational characteristics, fare structure, rules and
regulations, competition with other operators, administrative problems etc thus
identifying bottlenecks either operational, financial, technical, managerial, or elsewise
c- Proposed plan to improve operational and financial status of the company to
the level requned to attract the interest of the private sector
d- To support efforts to secuic financial and technical assistance that might be
required to solve specific bottlenecks
e- To workjointly with concerned companies in implementing these plans to
reach the ultimate goals
3- Activities
a- The SRCUwill review all previous studies and reports, conduct visits, meetings and
descussions with all concerned partners and prepare a standing paper outlining the present
status and the mam issues requiring thorough investigation
b- After identifying selected group of companies that will be set as an example for
speeding up the structural reform piogiam, a moie in depth analysis will be undertaken
covering all activities within the company in order to identify problem areas that are
hampering company progress
10
c- The SRCU will prepare different action plans for tackling different issues confronting
each company
d- The SRCUwill be jointly involved in implementation of these plans and in monitoring
and preparing reports on the following up
e- Most of these activities will be undertaken directly by the MCU team members
However for some specific issues an additional input from outside consultant offices ( local
or expatriate ) might be required
E- INPUTS
1- Host Government Inputs
Appropriate number of office accommodation, including all required
equipment, supplies and services, as required for effective implementation of
the project
Secretaries, research assistants and non-technical local staff
Computer facilities as may be required
Adequate transportation facilities for local travel on project assignment
2- USAID/UNDP Inputs Cost to Cover
Project Director and Deputy Director (See Job Description Annex 1)
International and local experts
International and local consultants
International travel
3- ESCWA Input
Professional services throughout the duration of the project (to be decided later)
F- WORK PLAN
A tentative work plan and its requirement is outlined in Annex 2 However, the preparation
ofthe detailed work plan will bethefirst task to beprepared by theunit director and deputy director
11
The recruiting of appropiiate candidates for the two posts will take place as a first step under the
responsibility of the UNDP in consultation within MPES
G- RISK
Delays in selecting and recruiting the professionals required for the MCU will impede the
success of the project All possible efforts will be made by either party to fulfill its obligations so as f
not to jeopardize the attainment of the project objectives
H- PRIOR OBLIGATIONS AND PERQUISITES
None
I- PROJECT REVIEW. REPORTING AND EVALUATION
The project will be evaluated in accordance with UNDP procedures In this regard the
organization, TOR and timetables of the evaluation will be decided in consultation with the MPES
J- BUDGETING:
A tentative budged scheme is outlined in appendix 1
A-
B-
C-
12
Annex1
SRCU- TRANSPORT SECTOR
I- MAN POWER REQUIREMENT
Post InL Local
Advisors
1- Unit Director
2- Deputy Director
Experts
3- Rd Freight Transport
4- Intel -city passengei Transport
5- River Transport
6- Maritime Transport
7- Shipping & Forwaiding Agents
8- Repair and Maintenance
Vehicles
Ships (River + Mant)
9- Cargo Handling
10- Container Terminal Operation
11- Port Management
12- Transport Co Management
13- Privatization
14- Cost Accounting
15- Computerization
Suppc)rtmi? Staff
36 ( locally recruited )
36 ( locally recruited )
72
1 5 12
1 5 12
1 5 6
2 2
2 2
3 3
3 3
2 4
2 4
1 2
2 6
3 3
12
12
24 5 83
16- Administration 1x3 6
17- Research Assistant 3x36
18- Secretaries 2x36
19- Non-Technical 2x36
288
13
Budget Estimate
A Advisors , Experts , Supporting staff
B
a/ Advisors
b/ Experts
Int
local
c/ Supporting staff
M/m
72
24 5
83
36
108
72
72
Local Consultants
( for surveys )
Approximate lump sum
Offices Requirements
Rent 36x2x3000
Running expenses 36 x 1000
Miscelleneous antf
iate (000)
$ LE
5 -
10 _
2 -
2000
1500
0 75
0 300
Total (000)
$ LE
360 -
245 _
166
72
162
54
21 6
771
771
69
840
309 6
200
216
36
761*6
76 4
838.0
14
Annex 2
STRUCTURAL REFORM PROGRAM
TRANSPOR T SECTOR
TENTATIVE WORK PLAN OF SRCU
A- ACTIVITIES
1- Activity 1
i- Foimulating Detailed Work Plan
li- Team Formulation
- Preparing TOR for each expert including job decription, functions, qualifications and experience
- Selection of candidates
- Job assignment
2- Activity 2
Selection of designated companies
- An overview on the status of public sector enterprises operating in the field of
transport, cargo handling, logistics and maintenance and repair
- Detailed sub-sector report on each gi oup of companies operating in each field
- Proposals for companies to be selected (4) to be covered by the program
3- Activity 3
Problems identification (for each company )
- Demand and supply of relevant services and the role of the company in providing
such services
- Competition with other operators
- Financial structure Assets/ liabilities/ opeiating costs/ revenues/ tariff structures
- Technical matters
- Operational characteristics
15
- Management issues
- Man power resources
- Resource utilization
- Legal framework ( rules and regulations )
- Identification of bottlenecks
4- Activity 4
Strategic issues Options and Scenarios
- Experience of other countries in privatization
- Define role of private sector
- Setting of strategic goals- management strategy
- Setting objectives and mission definition
5- Activity 5
Operational Management Improvement
- Optimum operational management type, shape, stmcturc Define best practices to
achieve these objectives
- Streamline the flow of mfoimation ( computerization and MIS )
- Computeiization of data, accounting, billing, operation, caigo allocation, storage,
maintenance etc
- Cost accounting setting up costs and revenues centers
- Set up target and goals of productivity for the lower management
- Set up efficiency indicators and targets that would be reported and reviewed
within the MIS by various management levels
- Set up productivity indicatois
- Set up training program foi improving management efficiency
16
6- Activity 6
Implement Improvement Plans
- Set up a detailed time " action plan " for implementing the proposed improvement
- Work jointly with conceined companies in implementing these plans to reach the
ultimate goals
- Measure performance levels achieved
- Adjust plans if necessary and leport
B- TIME ALLOCATION
Activity Duration (
1- Formulating detailed work
plan and team formulation 2
2- Selection of designated companies 2
3- Problem identification 6
4- Strategic issues 4
5- Operational Management Improvement 10
6- Implement Improvement Plan 11
Total 36
w

لغة:العربية
نتيجة: 1498424.2
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