Reem Leila reports on progress in replacing Egypt's fleet of ageing taxis Under traffic law 121/2008, which came into effect last August, owners of taxis older than 20 years have until the beginning of 2011 to replace their vehicles with newer, more environmentally friendly cars that run on natural gas. Yet even though the Ministry of State for Environmental Affairs estimates there are more than 40,000 taxis older than 25 years operating in Cairo alone till now no more than 5,000 taxi owners have so far applied for loans to renew their vehicles "They will buy the old taxi for a very cheap price and offer an extra LE5,000. The remaining price of the new car -- and they are more than LE60,000 -- will be in the form of a bank loan," says Mustafa Walid, owner of a 1979 Peugeot taxi. "Many taxi drivers will be forced out of the business." Walid, who also works at a public sector company, makes on average LE1,000 per month from his 30-year-old taxi. "This is double what I make from my government job. I am not going to change my car unless they force me to do so," he says. On 8 April the first 50 taxis, white with a chequered strap on both sides of the car, were delivered. A press release recently issued by the Ministry of Finance states that specified car traders are offering discounts of between LE2,000 and LE5,000 on the price of the new taxis in order to encourage more drivers to replace their vehicles. This is on top of the LE100 monthly allowance the ministry has granted the purchasers of new taxis to help with instalment payments. "It has been agreed with the banks that loans to buy new taxis will have a fixed interest rate of only 6.25 per cent. The ministry has also agreed a deal with advertising agencies. They will pay LE550 per month to place ads on taxis. The money will be deducted from the monthly instalments drivers pay. This means that a locally assembled 1300cc car will cost as little as LE390 a month, while 1600cc vehicles will cost LE1,205," says Nabil Rashdan, assistant to the minister of finance. Sherif Gomaa, assistant to the minister of interior, confirms that traffic authorities will no longer renew the licence of any taxi older than 20 years. The Russian-made Lada 1300s, Romanian Dacia 1300s, Italian Fiat 1300s, Egyptian Nasr, French Peugeot 504 and Turkish Shahins which now dominate Cairo's congested streets will soon be a thing of the past. "Most taxis on the road have been operating 24 hours a day for more than 20 years," says Gomaa. "Their brake systems are almost destroyed, the steering wheels can separate from the steering shaft. They cause a huge number of accidents." Taxi driver Ahmed Sayed believes it is unfair to judge a car solely on its year of production. Instead, he says, assessments should be based on the road worthiness of the vehicle regardless of the year it was made. "The state of any car depends on the taxi owner and driver, not the year of production. My car dates back to the 1970s but is in a better shape than most of the new cars." Salah El-Hadari, secretary-general of the Egyptian Automobile Manufacturers Association (EAMA), adds that it is unfair to value old cars at LE5,000 since many vehicles would command a higher market value. El-Hadari is also sceptical about the viability of the ministry's programme of financial incentives. He points out that when the price of gas, which ranges from between LE25 and LE50 per eight-hour shift, and taxi rent, which varies between LE30 to LE60, is taken into account, a driver's total expenses for the month are often over LE2,000. Taxi owners are also responsible for the cost of repairs. Most owners and drivers manage to take home a monthly profit ranging between LE900 to LE2,500, depending on their luck. And the trouble, says El-Hadari, is that earnings really do depend on luck. Even a LE390 payment could make it difficult for them to put food on the table in a bad month. The Ministry of State for Environmental Affairs expects the new environmentally friendly taxis to reduce emissions of carbon monoxide by more than 20,000 tonnes per year and nitrogen dioxide by 2,000 tonnes. They will also save the government more than LE300 million in subsidies. Ahmed Abul- Seoud, deputy to the minister of state for environmental affairs, points out that the government pays approximately LE1.5 per litre for petrol subsidies. It costs a fraction of that to finance natural gas. "The new system will help save 155 million litres of gasoline and 10 million litres of diesel per year," says Abul-Seoud. More than 40,000 families in Cairo depend on old taxis for their survival. Modernisation costs money and taxi drivers are going to bear most of the cost. Though new vehicles mean fewer breakdowns and perhaps fewer traffic hazards and congestion, most drivers are worried about losing a relatively stable income and ratcheting up their debts. Egyptian roads are among the most dangerous in the world. According to a recent World Health Organisation report Egypt is ranked third in international league tables listing countries with unsafe roads. Ministry of Interior figures show that 6,000 people a year die in road accidents and 30,000 are injured.
