To support its plan to overhaul the national railway system, Egypt is establishing a value chain that includes train manufacturing. The project with Alstom is now taking shape.
Egypt has signed a usufruct agreement with French group Alstom for a 16.8-hectare (40 feddan) land reserve in Borg El Arab, as part of its local train manufacturing project, which also includes components and railway spare parts. The agreement was finalized on the sidelines of French President Emmanuel Macron’s official visit to Egypt.
Initially announced in July 2023 and confirmed through a memorandum of understanding in May 2024, the project involves the establishment of two factories. The first will specialize in railway electrical systems and components, such as signaling, control panels, wiring, and other infrastructure elements. The second will focus on manufacturing various types of rolling stock, including light rail transit (LRT) vehicles, monorails, and high-speed trains.
The initiative aligns with the Egyptian government’s policies to meet local and African market demands. It is expected to reduce national expenditures in a country that has launched large-scale infrastructure projects in recent years to modernize its railway system. The long-term vision includes a network of metro lines, high-speed rail, skyways, and more.
Beyond improving mobility, the initiative also aims to position the railway sector as a key link in Egypt’s global logistics chain. The country is home to the Suez Canal, a critical hub for global maritime trade. With significant ship traffic, Egypt is working to capitalize on its strategic location by developing port infrastructure, building dry ports, and establishing logistical and industrial hubs.
It is worth noting that, besides Alstom, Egypt has signed a similar agreement with South Korea’s Hyundai Rotem, which recently secured a contract in Morocco to locally manufacture railway vehicles. This makes Egypt and Morocco the main competitors in this sector in North Africa.
Source : Agence Ecofin
