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Siemens Mobility and their turnkey rail system deal in Egypt

Siemens Mobility and their turnkey rail system deal in Egypt
photo: Siemens mobility press materials/Siemens Mobility
11 / 11 / 2021

Siemens Mobility is honored to announce that it has signed a contract with the National Authority for Tunnels (NAT), accompanied by the Egyptian Prime Minister and Minister of Transport and the German Ambassador in Egypt to deliver a comprehensive rail system, that will feature the first high-speed, electrified main and freight rail line that will transform transportation in the Arab Republic of Egypt. Together with partners, Siemens Mobility will provide its extensive turnkey services to design, install, commission, and maintain the systems for 15 years. The total contract value is about USD 4.5 billion, of which Siemens Mobility’s cut is around USD 3 billion. The majority of the order intake is to be filed in 2022 after the end of the fiscal year.

 It is the first contract that is supposed to be signed from the MoU agreed upon between NAT, Siemens Mobility, Orascom Construction, and The Arab Contractors in January 2021.

In addition, it was mutually agreed to consider and finalize the arrangements on the two other high-speed railway lines including rail infrastructure and trains, and support in the upcoming months. 

This Turnkey railway project is going to include 

  • 660 km of modern, safe, and integrated rail system to link the Red and the Mediterranean Sea for people and goods
  • First-ever high-speed and electrified main rail line in Egypt 
  • Siemens Mobility to provide high-speed and regional trains, locomotives, rail infrastructure, and related services
  • To complete all aspects of the project and the consortium will create more than 15,000 local jobs
  • The contract covers the initial 660 km out of the 1800 km rail network planned

The connection will transport more than 30 million travelers annually and save up to 50 percent of travel time, which will strongly boost the productivity of the workforce. It will connect Cairo with the new urban communities that are being developed. Cairo’s population has doubled in size since 1980. As of today, approximately 20 million people consider Cairo home. Hence, to ease the congestion, new cities are currently being developed around Cairo city. The further benefit of a comfortable and affordable passenger system around Cairo will reduce travel duration from east to west. The line will unite both sea and dry ports, which will improve the overall efficiency of moving freight. Precisely, the total non-coastal freight transported on rails will increase by 15%.

“We are proud to support the Egyptian government’s ambition to transform its transport sector by building its first high-speed electric rail network. This landmark project will create jobs, boost economic growth, and improve quality of life for millions of people, by creating a more efficient, safe and sustainable transport system,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “As a long-standing partner to Egypt, we are committed to providing the most advanced technology and to supporting local skills development."