Alstom to set up domestic railway production unit in Egypt, agreement signed

Cairo, Egypt (Metro Rail Today): Egypt's Minister of Transport, Mr. Kamel Al-Wazir, has inked a memorandum of understanding (MoU) with France's Minister of Economy and Finance, Mr. Bruno Le Maire, signaling a significant step towards establishing local production of rolling stock and railway equipment in Egypt. This milestone agreement underscores the collaborative efforts between the two nations to bolster Egypt's railway infrastructure and stimulate economic growth.

The MoU follows the Egyptian cabinet's provisional approval in July 2023 of a proposal presented by Alstom, a leading railway manufacturer, to construct two factories in Alexandria. These factories are poised to generate approximately 1200 local jobs, offering a significant boost to the country's economy. One factory will focus on producing metro trains, Light Rail Vehicles (LRVs), monorail cars, and rolling stock for mainline operations, while the other facility will specialize in manufacturing components, electrical systems, and equipment essential for railway operations, including signals, panels, and wiring.

During his visit to France, Minister Al-Wazir provided insights into Egypt's ambitious metro expansion plans, highlighting the first phase of the new metro Line 6 in Cairo, extending from Al Khusous in Qalyoubiya to Maadi in Cairo. The subsequent phase will further extend Line 6 to the New Administrative City (NAC), facilitating seamless connectivity to key destinations, including the high-speed station at Mohamed Naguib and Narguis on the East of Nile Line monorail.

Alstom's involvement in Egypt's metro development endeavors dates back to November 2022 when the company was awarded a framework agreement to design, build, and maintain the 34km Line 6, slated to become Cairo's first driverless metro. The partnership between Egypt and France extends beyond railway infrastructure, encompassing funding commitments from the French Development Agency (AFD) totaling €900m. These funds, representing 25% of AFD's total financing for Egypt, support various transport projects undertaken by the National Authority for Tunnels (NAT), including extensions of Cairo metro Line 1 and Line 3, construction of the Alexandria metro, and upgrades to the Ramal Tram network.

Egyptian National Railways (ENR) also benefits from AFD funding, particularly for investment projects such as track-doubling initiatives aimed at enhancing connectivity and efficiency across key railway corridors.

Minister Al-Wazir lauded the collaboration between Egypt and France in the transport sector, emphasizing its pivotal role in advancing sustainable development and urban mobility initiatives. The continued support from AFD underscores the shared commitment to fostering growth and prosperity through strategic partnerships and collaborative endeavors.

This partnership between Egypt and France heralds a new era of cooperation in railway development, positioning Egypt for sustainable growth and enhanced connectivity in the years to come.