Egypt signs 8 billion euro deal with Siemens for high-speed rail system | News | DW
German industrial group Siemens said on Saturday evening that it had reached an agreement to build 2,000 kilometers (1,243 miles) of high-speed rail lines across Egypt.
The deal, worth 8.1 billion euros ($8.7 billion), is the largest order in the Munich-based company’s 175-year history.
The contract includes, in addition to the railway lines, 41 high-speed trains, 94 regional trains, 41 freight trains and eight depots and freight stations. It also stipulates that Siemens will be responsible for maintenance for 15 years.
The megaproject aims to connect 60 cities by train, at speeds of up to 230 kilometers per hour, providing rail access to around 90% of the population, according to Siemens.
Egyptian President Abdel Fatah el-Sissi called the network project “the beginning of a new era for the railway system in Egypt, Africa and the Middle East”, during the contract signing ceremony.
Sixth largest rail network in the world
“Thanks to our latest technology in rolling stock, signaling and maintenance, Egypt will have the sixth largest and most modern high-speed rail network in the world,” said Siemens CEO Roland Busch, during the ceremony.
The project will be carried out under the Siemens mobility branch of the group in cooperation with two partner companies.
The cost of the deal includes the 2.7 billion euros that was agreed last year for the first section of track, the so-called “Suez Canal on Rails”, which will stretch 660 kilometers from the port city of Ain Sochhna in Marsa Matruh. and Alexandria on the Mediterranean coast.
The company promises 40,000 jobs
The second section of track, totaling 1,100 kilometers, will connect the capital Cairo to the southern city of Abu Simbel, near the border with Sudan, and will pass through settlements along the Nile.
The third will stretch from the central city of Luxor to the coastal city of Hurghada, covering some 225 kilometers, facilitating the transport of goods from the Mediterranean to the key port of Safaga.
Siemens said the project will create some 40,000 jobs in Egypt, as well as an additional 6,700 jobs in related industries.
The company also claimed that the fully electrified network would reduce CO2 production by around 70% compared to journeys made by bus or car.
ab/jcg (dpa, AFP)