Siemens Mobility has signed a contract with Egypt’s National Authority for Tunnels (NAT), to deliver a ‘comprehensive rail system’ that will feature the first ever high-speed electrified main and freight rail line and ‘transform transportation in the Arab Republic of Egypt’.
Together with partners Orascom Construction SAE and The Arab Contractors, Siemens Mobility will provide its turn-key services to design, install and commission the systems, and maintain them for 15 years.
The total contract value is about $4.5 billion, of which Siemens Mobility’s share is around $3 billion. The vast majority of the order intake is expected to be booked in 2022 after ‘financial closing’. It is the first contract to be signed from the MoU agreed upon between NAT and Siemens Mobility, Orascom Construction and The Arab Contractors in January 2021.
The contract recently signed covers the initial 660km of the 1,800km rail network planned. Additionally, it was agreed to discuss and finalise in the coming months the agreements on the two other high-speed railway lines, including rail infrastructure and trains, and maintenance.
Roland Busch, president and CEO of Siemens AG, said: “We are proud to support the Egyptian government’s ambition to transform its transport sector by building its first high-speed electrical 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; and in addition to benefitting passenger travel, the first fully electric mainline rail network in Egypt will create thousands of local jobs and open up huge possibilities for freight transport.”
For this project, Siemens Mobility will deliver its Velaro high-speed trains, Desiro high-capacity regional trains, and Vectron freight locomotives. A signalling system featuring the latest computer-based interlocking technology and European Train Control System (ETCS) Level 2 will be installed, as well as the power supply system. Siemens will also provide and integrate the latest communications, safety and security systems.
The 660km 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.
For this first part of the project 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.