GB Auto announced that the company has recently received a government contract for trailer overhauls. The programme will target a total of 35,000 trailers, of which 21,000 units are to be modified and 14,000 units, manufactured before 1990, are to be replaced by the end of 2012, according to Beltone Financials.
A number of banks will be involved in financing the trailer programme, which is similar to Egypt's current taxi replacement programme.
"We expect GB Auto to have a market share of 30 per cent, as the management target for the new trailer programme," Beltone commented. Should GB Auto indeed capture their targeted market share, the company could potentially see revenues of LE630 million over 2011 and 2012, and a potential increase of LE82 million to its gross profit, Beltone added.
As reflected by the news of the trailer overhaul contract, the Egyptian government has been eager to upgrade road transport in an effort to improve the deteriorating road safety.