US-based Progress Rail and Egyptian National Railways have sealed contracts with a total value exceeding $235 million aimed at modernizing and upgrading Egypt’s rail system, boosting economic growth and creating jobs.
The contracts include the refurbishment of 1,000 diesel-electric locomotives, a deal valued at $185 million, along with a 15-year parts supply agreement for 141 locomotives valued at $42 million, and a technical assistance contract for the same number of locomotives, valued at $5 million, with an option for extension.
Economic boost
The signing ceremony, held at the Ministry of Transportation in the New Administrative Capital, underscores the growing collaboration between Egypt and the US. US Ambassador Herro Mustafa Garg expressed enthusiasm about the deals, emphasizing how they would strengthen economic ties and contribute to Egypt’s railway development, which is key to the nation’s broader economic stability and growth.
This partnership comes on the heels of other significant infrastructure projects, such as Alstom’s signalling upgrade for the Beni Suef-Assuyt railway line in May 2024, and the selection of British Steel to supply track for a segment of Egypt’s high-speed rail network. These developments are part of Egypt’s broader strategy to modernize its railway system, enhancing both passenger and freight transport capabilities across the country.