Siemens Mobility has signed a contract to deliver an Egyptian rail system that will feature the country’s first high-speed, electrified main and freight rail line.
This follows on from a memorandum of understanding between Egypt’s National Authority for Tunnels (NAT) and a consortium made up of Siemens Mobility, Orascom Construction and The Arab Contractors in January 2021.
The total contract is valued at value roughly 4.5bn USD (3.79bn euros) of which Siemens Mobility will receive approximately 3bn USD (2.52bn euros).
Together with its partners, Siemens Mobility will design, install and commission the systems and maintain them for 15 years.
This contract covers the initial 660 kilometres of the planned 1,800km rail network. This will link Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean, and the vast majority of the order intake is expected to be booked in 2022 after financial closing.
Agreements regarding the two other high-speed railway lines, connecting the Greater Cairo region from 6th October City along the Nile River with Aswan, and Luxor via Hurghada to Safaga, are expected in the coming months.
When complete, the new rail system will transport more than 30 million people per year and save up to 50 percent travel time. It will also improve connections between sea and dry ports, which will increase the total inland freight transported on rails by 15 percent.
The fully electrified system will reduce primary energy usage and overall air pollution by cutting carbon emissions by 70 percent in comparison to the current emissions from car and bus transportation, Siemens Mobility says.
“This high-speed train will strengthen the infrastructure of the areas it passes through and help achieve urban sprawl, in addition to linking the New Administrative Capital and new cities to the railway network for transporting passengers and goods.
“The project will also help promote tourism through a fast, modern and safe means of transportation. This will be characterised by the highest levels of efficiency and safety to meet the needs and expectations of all Egyptians across the country, which is considered a major leap in the field of rail transport. For its part, Siemens will provide its latest smart technology solutions, along with its continuous support to local skills development.”
As part of this project, Siemens Mobility will deliver its Velaro high-speed trains, Desiro high-capacity regional train sets and Vectron freight locomotives.
A safe and reliable signalling system based on the latest computer-based interlocking technology and European Train Control System (ETCS) Level 2 will be installed, as well as the power supply system that delivers efficient and continuous energy.
The other members of the consortium will install the tracks, while the Egyptian government will build the bridges and arrange construction.
The goal of this new rail system is to re-establish Egypt as a regional leader for transportation. It will impact different economic sectors, empowering both smaller and midsized businesses, and will provide an overall boost to the economy.
The consortium will directly create more than 15,000 jobs in the country, with an additional 3,800 at Egyptian suppliers and indirectly through the wider economy with this project, and many more new jobs are anticipated as the other lines become ready for implementation.
In addition to jobs, the project will also contribute to a significant local, technical training and qualification program that Siemens Mobility intends to support, which will provide the needed skill development to complement the project.
“We are proud to support the Egyptian government’s ambition to transform its transport sector by building its first high-speed electrical rail network. This landmark project will create jobs, boost economic growth, and improve quality of life for millions of people, by creating a more efficient, safe and sustainable transport system.”
