Egypt signs strategic deals to build 500 railcars, expand rail workshops
Egypt on Monday signed agreements to manufacture 500 air-conditioned passenger railcars and set up a company to operate key railway workshops, as part of the government’s efforts to localise transport manufacturing and expand private-sector participation.
The deals, signed between the Egyptian National Railways (ENR) and the National Egyptian Railway Industries Company (NERIC), were witnessed by Transport Minister Kamel El-Wazir and Labour Minister Hassan El-Raddad.
The first agreement covers the production and supply of 500 railcars, part of broader efforts to modernise the passenger fleet and improve service quality. It builds on earlier contracts with NERIC, including a project to manufacture 40 metro trains — equivalent to 320 air-conditioned carriages — in partnership with South Korea’s Hyundai Rotem for Cairo Metro Lines 2 and 3, as well as a separate deal to supply 21 trains for the Alexandria metro.
El-Wazir said the agreement aligns with President Abdel Fattah El-Sisi’s directive to deepen local manufacturing of transport components, cut reliance on imports, and leverage infrastructure projects to build domestic industrial capacity.
“It also reflects efforts to leverage major transport projects across sectors to build industrial capacity, develop manufacturing expertise, and enable Egyptian-made products to compete with imports on quality and price,” he added.
“We are moving forward at a steady pace in this direction,” he said.
A second agreement provides for the establishment of a specialised company to operate the Kom Abu Radi railway workshops, which will handle overhaul, repair, and maintenance across the rolling stock.
The move is part of a broader plan to improve efficiency, increase fleet readiness, and support the long-term sustainability of railway services, while opening parts of the sector to private operators to boost competition and service quality.
Labour Minister El-Raddad said the agreements would support job creation and develop technical skills, as the government seeks to align vocational training with labour market needs.
NERIC Managing Director Ahmed El-Mofty said the railcar contract marks a step towards building Egypt’s rolling stock manufacturing industry, while the Kom Abu Radi project signals the company’s expansion into maintenance and operational services.
Attribution: Amwal Al Ghad English