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Siemens Mobility Signs Historic Contract For Turnkey Rail System In Egypt

posted on 1st Sep 2021 13:09

On 31 August 2021, Siemens Mobility has signed a contract with the National Authority for Tunnels (NAT) to deliver a comprehensive rail system that will feature the first ever high speed line that will transform transportation in the Arab Republic of Egypt. Together with partners Orascom Construction SAE and The Arab Contractors, Siemens Mobility will provide its comprehensive turnkey services to design, install, commission, and maintain the systems for 15 years.

The total contract value is approximately 4.5 billion USD, of which Siemens Mobility’s share is around 3 billion USD. It is the first contract to be signed following the MoU agreed upon between NAT and Siemens Mobility, Orascom Construction and The Arab Contractors in January 2021. The contract covers the initial 660 km out of the 1,800 km rail network planned, which will also be used by freight trains. Additionally, it was agreed to discuss and finalise the agreements on the two other HSLs including infrastructure and trains, and maintenance in the coming months.

Siemens will deliver its Velaro high speed trains, Desiro HC EMUs, and Vectron (freight) locomotives, all with on-board ETCS Level 2. Furthermore, Siemens will provide and integrate the latest communications, safety and security systems that will create a pleasant passenger experience. Siemens Mobility’s consortium partners will install the tracks, while the customer will build the bridges and facilitate the sub construction. 

We asked Siemens, how many Velaros, Desiros and Vectrons will be delivered? The company answered us: "Thank you for the question, but we‘re not disclosing contract details on that."

The 660 km line will connect the port cities of Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean, creating a Suez Canal type of link on the tracks. The Egyptian government has an ambitious plan to invest heavily in a reliable and sustainable 1 800 km state-of-the-art high speed rail network, that will provide efficient, safe, and affordable transportation for all Egyptians, as well as goods across the country. The two additional lines will connect the Greater Cairo region from 6th October City along the Nile River with Aswan, and Luxor via Hurghada to Safaga.

Already the first line will be very beneficial for Egypt’s society and environment. The consortium will directly create more than 15,000 jobs in Egypt, with an additional 3,800 at Egyptian suppliers and indirectly through the wider Egyptian economy. It is anticipated that many more jobs will be created as soon as the other lines are ready for implementation. In addition to jobs, the project will also contribute to a significant local, technical training and qualification program that Siemens Mobility intends to support, which will provide the needed skill development to complement the project. 

The new network will transport more than 30 million people annually and save up to 50 % travel time, which will strongly increase the productivity of workforce. It will link Cairo to the new urban communities being developed. Cairo’s population has doubled in size since 1980 and today approximately 20 million people call Cairo home. 
The additional benefit of a comfortable and affordable commuter system around Cairo will reduce travel time from east to west. Furthermore, the line will connect both sea and dry ports which will improve the overall efficiency of moving freight. Specifically, the total inland freight transported on rails will be increased by 15 %.

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