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Mon August 15 2022

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Siemens team finalises 2,000km Egyptian rail contract

30 May A consortium of Siemens Mobility, Orascom Construction and Arab Contractors has signed a contract to create a 2,000 km high-speed rail network in Egypt.

Siemens will provide eight-car high-speed trains, four-car regional train sets and freight locomotives for the project
Siemens will provide eight-car high-speed trains, four-car regional train sets and freight locomotives for the project

The integrated system for people and goods will link 60 cities across the country with trains that can operate at up to 230km/h. The consortium will design, install, commission and maintain the entire system for 15 years. It estimates that completion of all aspects of the project will create up to 40,000 local jobs.

Siemens Mobility’s share of the combined contract – the biggest in the company’s history - is €8.1bn and includes an initial contract of €2.7bn for the first line signed in September 2021. It will provide 41 Velaro eight-car high-speed trains, 94 Desiro high-capacity four-car regional train sets and 41 Vectron freight locomotives.

Orascom Construction’s share of the newly signed phase is US$1.2bn, which brings its total share of all three lines to US$1.8bn.

The contract is with the Egyptian National Authority for Tunnels (NAT), a governmental authority under the jurisdiction of the Ministry of Transport of Egypt.

The high-speed network will consist of three lines. The ‘Suez Canal on rails’ line had already been announced - a 660km connection between the port cities of Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean. One of the two newly signed lines is a 1,100km route between Cairo and Abu Simbel near the Sudan border, linking the mega city to rising economic centres in the south. The third line will be 225km long and will connect the world heritage archaeological sites in Luxor with Hurghada by the Red Sea. In addition, this rail link will significantly improve the efficiency and sustainability of freight transport for goods and materials between Safaga harbour and inland locations.

Approximately 90% of Egyptians will have access to the integrated rail system. With a modal shift to train transport, the fully electrified network is expected to cut carbon emissions by 70% compared to current car or bus transport.

President of Egypt Abdel Fattah El-Sisi said: “The new electrified train network comes as a consolidation of the fruitful cooperation between Egypt and Germany in the field of infrastructure and will represent a valuable great addition to Egypt’s transportation system, marking the beginning of a new era for the railways system in Egypt, Africa, and the Middle East.

Siemens AG president and chief executive officer Dr Roland Busch said: “The opportunity to provide Egypt with a modern, safe, and affordable transportation system that will transform the everyday for millions of Egyptians, create thousands of local jobs and reduces CO2 emissions in transport is an honour for us. Not only will it promote economic growth, it will also enable Egypt to take a leap forward in rail transportation. With our latest technology in rolling stock, signalling and maintenance services, Egypt will have the sixth largest and most modern high-speed rail network in the world. In addition, it is the biggest order in the history of Siemens!”

Siemens Mobility CEO Michael Peter added: “This landmark transportation project is truly historic for both Egypt and Siemens and we are honoured to partner with the Ministry of Transport to reimagine the future of transportation in Egypt. The extensive 2,000km high-speed rail network will connect 60 cities and enable around 500 million journeys a year. It will link the country like never before, fight pollution and global warming, while also providing an effective and reliable method for the movement of goods. Together with our partners, we will develop from scratch a complete and state of the art rail network that will offer a blueprint for the region on how to install an integrated, sustainable, and modern transportation system.”

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