Alexandria’s Tram Replacement Falters as Drivers Wait Two Months for Payment

Expenses of EGP 7.8 million against revenues of 1.56 million in a single month, and cheques without funds for drivers who left their governorates to work in Alexandria’s tram replacement system, which ran into financial trouble only weeks after it began.
Picture of Aya Yasser

Aya Yasser

In early February, coinciding with the partial suspension of the Alexandria tram in preparation for its upgrade under government plans, the National Authority for Tunnels announced the provision of alternative means of transport, including buses, “minibuses” and “microbuses”, operating on three main axes: the Corniche axis, the route parallel to the tram, and Abu Qir Street.

Less than a month after the new system began operating, by March, appeals for help poured in from drivers and owners of the vehicles working in it, over delays in paying their dues in wages and vehicle rent, as a result of the financial difficulties of the company Fast Bus Transport, according to the drivers and administrative staff at the company who spoke to us.

According to documents obtained by Zawia3, the company is one of the firms operating in the field of mass transport, holding commercial register number 18721 and tax card number (709432518). It began its activity in Alexandria in 2009, when it introduced double-decker buses carrying 72 passengers on the Corniche line, and applied the same experiment in Smart Village in 2012. In February 2018, the company announced a project to transport students of Sohag University.

Recently, the company obtained a licence from the Internal and International Land Transport Regulatory Authority to work among the alternative companies for the Raml Tram project in Alexandria, operating as a substitute for the tram on the axis of the tram route and El-Horreya Road between Victoria and Raml Station, with minibuses and microbuses holding trip licences. The company operates about 90 buses and microbuses within the system, according to the documents.

Zawia3 contacted a number of the company’s workers. Ibrahim Gohar, a driver and the owner of a number of “minibuses”, says he lived in Toukh district in Qalyubia Governorate before travelling to Alexandria Governorate to work within the system, coinciding with the suspension of the tram, after he signed a contract with the company to rent out eight 2002-model minibuses he owns, for EGP 50,000 per month for each vehicle, in addition to a monthly salary of EGP 5,000 for each driver in return for working eight hours, on the line running between Victoria, Bakos and Raml Station via Abu Qir Street and the tram line.

Gohar confirms to Zawia3 that he has not received his dues, estimated at about EGP 80,000, for February and part of March, pointing out that a number of vehicle owners received a combined cheque from the company worth EGP 191,000 for February’s dues, before it later became clear to them that it had no funds behind it.

The driver explains that the company had provided apartments for drivers from outside the governorate on the basis of one month’s deposit and another month paid in advance, but the period ended, and the owners demanded that they pay the rent or vacate the units, noting that about 20 to 25 drivers working within the system are currently trying to find alternative housing amid the financial crisis.

He says: “A large proportion of the drivers and supervisors have left work because they did not receive their dues, which affected the regularity of the system, while others are holding on and staying temporarily in the hope of recovering their rights, after two months of working away from their families and amid existing financial obligations.”

He adds: “We are currently working under a new system based on a percentage estimated at about 10% of the daily revenue, which is not enough compared with the long working hours, which stretch from six in the morning until after midnight, divided into two shifts.”

He points out that the drivers are still waiting for a solution to their crisis, and that they have received official promises from government officials at the Ministry of Transport and Alexandria Governorate, but these have not been carried out so far.

 

His account is echoed by Ahmed El-Sayed, a driver in the system who lives in Alexandria. He confirms that from the start they faced problems relating to the calculation of working days and dues, explaining that they worked throughout February but were surprised that the full month was not counted and that actual working days were deducted, in addition to financial deductions he described as illogical, ranging between EGP 5,000 and EGP 6,000 per vehicle.

He tells Zawia3: “The company delayed paying February’s dues until mid-March, which pushed some drivers to continue working during March in the hope of receiving their dues in full, but so far they have not been paid for this month, and they do not know the value of their final dues given the continuing deductions and the failure to count some working days.”

He points out that the operating system later changed: it is no longer based on fixed salaries but on something resembling a “daily commission”, whereby the drivers or vehicle owners pay in return for using the route and the permits and bear all the expenses themselves, which he considered a breach of the contract that places the entire operating risk on them without guarantees.

El-Sayed explains that the system relied on contractors, one of whom was responsible for about 49 vehicles, each operated by two drivers, while the number of workers in it was large, exceeding 100 drivers, which makes an accurate count of those affected difficult, especially with vehicles entering and leaving the system within short periods.

He believes that the operating model itself was built on inaccurate calculations, in terms of both costs and expected revenues, which was reflected in the system’s ability to meet its obligations; the figures on the basis of which the contracts were concluded appeared exaggerated, whether in relation to vehicle rents or drivers’ wages, compared with the actual return, which he attributes to the absence of accurate feasibility studies before the project was launched, stressing that the absence of clear institutional oversight and leaving operations to private companies without sufficient controls worsened the problems.

The crisis, which has hit the owners of the buses and vehicles rented to the company and the drivers working on them, has also extended to supervisors and monitors, and those who spoke to us confirm that they have not been paid their wages since they began working for the company.

A former supervisor in the alternative transport system for the tram in Alexandria and an employee of the Public Transport Authority, Mostafa Seddik, explains that he began working for the company in early February 2026, as supervisors from the authority were brought in to guide the new drivers and familiarise them with the routes, the working mechanisms and the tickets, especially since many of them lacked experience in regular transport.

He tells Zawia3 that in its first days the system saw notable confusion, both in the distribution of lines and in drivers’ compliance, noting that he later moved to work in inspection after violations relating to fare collection were detected.

He says: “Some drivers were handing over amounts far lower than the actual revenue, which prompted the management to assign supervisors to prepare reports on the violations, according to his account, and some of them were leaving the designated routes to work on other routes with a higher fare, which worsened the shortage of vehicles on the main lines and leads to continuous complaints from passengers.”

He adds: “These reports were later used to deduct large amounts from the dues of drivers and vehicle owners, reaching thousands of pounds, at the same time as the payment of dues was delayed from the end of February, despite repeated promises of payment,” pointing out that some workers were receiving limited payments to get by, without a comprehensive settlement of their dues.

He continues that the crisis worsened when some vehicle owners were given cheques that later turned out to have no funds behind them, which pushed those affected to make repeated attempts to contact the company’s management, to no avail; the matter even extended, according to his account, to closing the company’s headquarters or avoiding meeting the workers.

He also refers to a meeting that brought together those affected with officials inside the Public Transport Authority, on the sidelines of an official event, where the complaints were raised and the company’s management was asked to pay the dues quickly, but the promises were not implemented on the ground.

Seddik notes that the company has not stopped working, but it has changed its operating mechanism by relying on new drivers under the daily percentage system, which he considered an attempt to start a new operating cycle without settling the dues of previous workers.

He stresses that the crisis is still ongoing, with continued delays in the dues of a large number of workers and a growing withdrawal of vehicle owners from the system, in the absence of a clear solution so far.

In early February, the Ministry of Transport began implementing a comprehensive project to rehabilitate and upgrade the Raml Tram in Alexandria, which it said aims to turn it into a green, fast, smart means of transport 21.7 km long, to cut the journey time to 35 minutes and the headway to 3 minutes, and to increase capacity to more than 13,000 passengers per hour, amid a phased shutdown plan that began in early 2026.

During the first days of the trial operation of the alternative transport system, social media saw a wave of repeated complaints over the relatively high fares compared with the previous tram prices and the lack of consideration for the elderly and people with special needs, as well as overcrowding and traffic congestion, both inside the vehicles and at waiting stations, especially on the Corniche, Abu Qir Street and parallel routes.

Citizens’ complaints also included a shortage in the number of vehicles and their irregularity, especially during peak hours, which led to noticeable delays and difficulties in reaching workplaces and schools, along with demands to provide safer alternatives for students, as well as some drivers’ failure to stick to the designated routes, the splitting of routes and the collection of excess fares; the traffic police investigations unit recorded 139 violations during the first five days after its launch.

In response, Alexandria Governorate announced in February a reduction in full-distance ticket prices for the alternative means of transport to between EGP 8 and EGP 9, with the introduction of a half-distance ticket at EGP 5 and EGP 6, the addition of new routes (from Bakos to Victoria), and an increase in the number of vehicles to 185, along with a reduction in fares on the governorate’s public transport buses (Corniche line / Abu Qir line), making them free for elderly people over 70 and half-fare for elderly people over 60.

 

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Drivers Without Protection

“Lease contracts” signed between Mohamed Mohamed Mahmoud Amer, in his capacity as general manager of Fast Bus Transport, and a number of “minibus” owners, obtained by Zawia3, provide for the rental of the vehicles in return for a fixed monthly rent, with the lessee bearing all operating costs, including fuel and the management of drivers.

The contracts start on 1 February 2026 and end in January 2027, and are supposed to be renewed automatically for a similar period or until the end of the Raml Tram upgrade project, whichever is sooner, unless either party notifies the other of its wish not to renew at least thirty days before the end of the original term.

The contract obliges the lessee company to pay EGP 50,000 per month for each vehicle, paid in weekly instalments of EGP 5,000, with a monthly settlement to pay the remaining amounts.

The contracts include other clauses that go beyond the idea of a traditional lease, as they oblige the lessee to work according to the company’s instructions, within the scope of a specific project, and within daily working hours stretching from 5:30 am until midnight, working two shifts for 16 hours, which places the second party in a position closer to that of a worker without insurance rights, since it exempts the company from social insurance and health insurance obligations.

According to the contracts, the lessee bears all operating costs, including fuel, EGP 2,200 per month for oil changes, and drivers’ salaries (EGP 5,000 per driver) in addition to 10% of the revenue, with a weekly advance paid and a monthly settlement.

In return, the lessor undertakes to deliver the vehicles in good technical condition and equipped with the necessary licences, and to work according to the lessee’s instructions daily, while the contracts regulate breakdowns so that nothing is deducted from the rent if the repair time does not exceed 4 hours, and a proportional deduction applies if the period is longer or breakdowns recur; they also stipulate a daily delay penalty of up to 5% and fixed compensation of EGP 10,000 upon termination of the contract.

Commenting on the crisis, lawyer Mohamed Fattouh tells Zawia3 that a number of drivers have filed an official police report against the company’s management after their dues were delayed for a long time, considering that resorting to the Public Prosecution is the natural path to settle the dispute and enable each party to obtain its rights.

He explains that the contractual relationship exists between the drivers and the company in its capacity as a “contractor” that contracted with government bodies to deliver the service, which places responsibility for paying the dues on the company, even if it is waiting for its own financial dues from some government body.

He adds: “Issuing a cheque without funds is a crime punishable by law,” advising those affected to take early legal action to guarantee their rights, with the possibility of reconciliation later if the dues are paid.

The lawyer sees a need for the workers to escalate legally, alongside exerting legitimate pressure on the relevant authorities, especially in the absence of clear oversight of the implementation of contracts, noting that he is in the process of reviewing the contracts concluded between the company and the drivers to determine their legality and the extent to which they guarantee their rights.

Regarding what is being said about a new company entering the system, he affirms that Fast Bus, according to the available information, is still operating, with a change of workforce, which he described as a recurring pattern of “employing new workers without settling the dues of previous ones”.

Caesar Clean Energy Transport announced on 10 April the launch of a new mass transport line of environmentally friendly buses in Alexandria, as an alternative to the Raml Tram, as part of the trial operation, at prices it said start from just EGP 7, announcing the allocation of a vehicle for women called “Fiyonka Pink”, supervised by female ticket collectors, to ensure privacy and comfort.

According to the company, the new line runs from Raml Station to Victoria over 11 km and covers 19 main stations on the same tram route, serving the same vital areas, with full official operation due to begin during the second half of April.

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The Company’s Response

Zawia3 contacted Mohamed Amer, general manager of Fast Bus Transport, the operator of the tram replacement system in Alexandria, who stated that the relationship with the drivers is based on vehicle rental contracts separate from the drivers’ wages, noting that it had been agreed at the start of operation that drivers would receive a basic wage plus a percentage of revenue, before the company decided during February to pay a fixed salary of EGP 12,000 to each driver, owing to weak demand at the start of operation, as he put it.

He reveals that the system faced major challenges during the first two months, as a result of the partial operation of the tram line and weak demand, as well as violations by some drivers, including lateness and failure to adhere to operating times, in addition to violations relating to not issuing tickets to passengers, which caused major financial losses for the company.

He acknowledges that the company deducted sums from the dues of some drivers against whom, he said, documented violations had been proven, adding that “the company recorded multiple incidents of tickets not being collected even though the vehicles were full of passengers, a direct waste of revenue.”

Regarding the delay in paying dues, Amer acknowledged financial difficulties the company has suffered since mid-March, attributing them to delays in cash flows on which the company had been relying, and considering that these difficulties are temporary and that work is under way to end them.

He adds: “The drivers received cheques for their full dues, and the funds needed to cash them will be made available within a period of between a week and 10 days.”

He continues: “Since 19 March, drivers have been allowed to work and keep the full daily revenue without handing it over to the company, as a temporary solution until the crisis is overcome.”

Regarding the housing crisis, he stated that the company provided housing units for workers from outside the governorate, but with the halt in the flow of revenue to the company, the drivers were asked to cover the rent from the revenue they receive during this period.

On the other hand, Amer denies that the company has received any financial support from Alexandria Governorate or the Ministry of Transport, explaining that the company pays fees and deposits in return for the licence, and that its main income depends solely on revenue from ticket sales.

He reveals that the project incurred large losses at the outset, with expenses during a single month of operation reaching about EGP 7.8 million, against revenues that did not exceed EGP 1.56 million, which he described as a large financial gap resulting from weak operation and the violations.

He denies that his company has withdrawn from the project, considering what has been raised about “Caesar” entering independently to be inaccurate, and saying that the latter operates a limited number of vehicles under the umbrella of “Fast Bus”.

Asked about the stumbles in the trial operation of the tram alternative, he stated that the company is working in coordination with the Land Transport Regulatory Authority to address the operational problems, in preparation for applying a more efficient operating system from May, aimed at reducing the headway to about 5 minutes between one vehicle and the next, stressing that what is happening is a “temporary stumble” within a large project that is still in the trial operation phase.

For his part, MP Ahmed El-Derby, secretary of the Transport Committee in the House of Representatives, affirms that he will follow up on what has been raised about “Fast Bus”, the operator of the tram replacement system in Alexandria, to verify the circumstances of the complaints in circulation.

He tells Zawia3 that the Transport Committee will begin studying the crisis and contacting the relevant authorities to establish the truth of the situation, stressing that the committee is keen to ensure the regularity of the service and to protect the rights of workers and citizens, especially in vital projects linked to public transport.

It is worth noting that the estimated cost of the Raml Tram upgrade project in Alexandria is about $534 million, and it is financed mainly through a loan from the French Development Agency (AFD), in addition to the National Authority for Tunnels seeking to borrow about EGP 9 billion from a consortium of local banks.

The project, whose implementation is expected to take about two years, faces architectural and environmental criticism on the grounds that it will change the visual character of the city, especially in areas of historical value near the Corniche, as well as concerns about the felling of trees surrounding the tram route.

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Aya Yasser
Egyptian journalist, writer, and novelist holding a Bachelor's degree in Media from Cairo University.

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