Egypt to launch Rolling Stock Production Plant in 2025

Cairo, Egypt (Metro Rail Today): Egypt is set to take a major step forward in its railway sector with the construction of its first-ever rolling stock manufacturing plant. Scheduled to open by mid-2025 in East Port Said, this state-of-the-art facility will be operated by the National Egyptian Railway Industries Company (NERIC) in collaboration with Hyundai Rotem, marking a pivotal moment in the country's railway industry.

Key Highlights of the Rolling Stock Manufacturing Project:

• Phased Construction: The plant will cover 300,000 square meters and be built in three phases. The first phase will focus on the production of metro cars and mainline trains, set to begin in 2025. Future phases will expand the facility’s capabilities to include the production of monorail systems, trams, and high-speed rolling stock, as well as maintenance services.

• Investment & Financing: The initial phase of the project will require an investment of 4.2 billion Egyptian pounds (approximately $82 million), backed by a syndicated loan from leading Egyptian banks. This funding will help establish the infrastructure necessary to support the country’s expanding transport needs.

• Job Creation & Localized Production: This landmark project is expected to create around 5,000 jobs for Egyptians, with a focus on local production. Within three years, the plant aims to achieve a 75% localization rate for its manufacturing processes, bolstering Egypt's domestic industrial capabilities and reducing dependency on foreign suppliers.

Significance for Egypt’s Railway Sector

The establishment of this rolling stock plant is a significant step toward transforming Egypt’s railway sector, which has long relied on imported equipment for its operations. With the ability to manufacture critical railway components domestically, Egypt will not only reduce costs and improve supply chain resilience but also position itself as a key player in the regional transportation industry.

This project aligns with the broader vision of modernizing Egypt’s railway infrastructure and enhancing its capacity to meet the growing demand for efficient, sustainable public transport systems. The rolling stock produced at the plant will serve both domestic needs and potential export markets across the Middle East and Africa.

The new manufacturing facility underscores the potential for growth in Egypt’s transport sector, particularly as the country continues to invest in large-scale infrastructure projects, including high-speed rail systems, metro networks, and urban transit solutions.

Looking Ahead

As the construction of the plant progresses, Egypt’s railway industry is poised to undergo a significant transformation, not only through the creation of local manufacturing capabilities but also through the development of a more competitive and self-sufficient transportation ecosystem. The project will play a crucial role in meeting the country's rising demand for modern, sustainable transport solutions while fostering long-term economic growth and job creation.

By 2025, Egypt will begin to produce high-quality rolling stock, taking another major step toward building a world-class railway infrastructure that can serve the needs of its people and future generations.