Econostrum | Economic News in the Mediterranean

Egypt launches high-speed rail with Siemens Mobility

Written by Eric Apim on Tuesday, May 31st 2022 à 16:15 | Read 750 times

Egypt will have a 2,000km high-speed rail system serving 60 cities across the country, thanks to the signing of an €8.1bn contract with Siemens Mobility.

Siemens will supply 41 high-speed trains, 94 regional trains and 41 freight locomotives (photo: Siemens)
Siemens will supply 41 high-speed trains, 94 regional trains and 41 freight locomotives (photo: Siemens)
EGYPT. The Egyptian National Authority for Tunnels (NAT) finalised on Monday 30 May 2022 a turnkey contract for the installation, commissioning and maintenance for 15 years of a 2,000 km high-speed rail system in Egypt with the German Siemens Mobility. It is worth a total of €8.1 billion, of which €2.7 billion had already been initialled by the two partners in September 2021 for a first line.

Associated with the Egyptians Orascom Construction and The Arab Contractors, the transport division of the German group Siemens (which attempted to merge with the French Alstom at the beginning of 2019) will link sixty cities (covering 90% of the Egyptian population) by rail with trains capable of running at up to 230 km/h. This network will offer 500 million journeys per year. The project includes three lines: "Suez Canal on rails", already announced for a €2.7 billion investment in September 2021, and two new ones.

The first, "Suez Canal on rails", will serve the port cities of Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean, a total of 660 km of track.
The other two cover a distance of 1,100 km and 225 km respectively. One will link Cairo to Abu Simbel, near the Sudanese border, and thus ensure a better connection between the capital and the economic centres of the south of the country. The other will link the archaeological sites of Luxor to Hurghada on the Red Sea and will also be used to transport goods and materials between the port of Safaga and the interior.

40,000 direct jobs created in Egypt

Siemens Mobilty will build three new lines (iconography: Siemens)
Siemens Mobilty will build three new lines (iconography: Siemens)
"The fully electrified network will reduce carbon emissions by 70% compared to current car and bus transport, contributing to Egypt's efforts to transform its mobility into a more sustainable one," said a statement from the German manufacturer.

Siemens Mobility will also deliver forty-one eight-car Velaro high-speed trains, ninety-four four-car Desiro high-capacity regional trains and forty-one Vectron freight locomotives.

The consortium will create up to 40,000 jobs in Egypt directly, plus an additional 6,700 jobs with Egyptian suppliers and indirectly in the Egyptian economy to fulfil the entire contract.

It will be the sixth largest high-speed rail system in the world and "the largest order in Siemens' history", as Roland Busch, CEO of Siemens AG, points out. "The new electrified train network consolidates the successful cooperation between Egypt and Germany in the field of infrastructure and will be a valuable addition to the rail transport system in Egypt, Africa and the Middle East," commented Egyptian President Abdel Fattah al-Sissi.


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