Siemens is building the first electric railway network in Egypt. The group is already supplying ICE and regional trains, signal boxes and signaling technology for three billion dollars in the first step. The contract for the first 660 kilometers of the planned, 1,800-kilometer high-speed network has now been signed, said CEO Roland Busch on Wednesday in Cairo. The overall project has three times the volume. In addition to Siemens, two Chinese consortia and the French Alstom group had applied for the major order. A project of this magnitude cannot be done without political support, said Busch.
As a first step, Siemens wants to work with partner companies Orascom Construction and Arab Contractors to build a 660-kilometer route from Alexandria on the Mediterranean to the port city of Ain Sukhna on the Red Sea for passenger and freight traffic. In a video conference with journalists, Siemens CEO Busch described the project as a “Suez Canal on rails” for the country’s economy.
Siemens accounted for two thirds of the total order volume of 4.5 billion dollars in the consortium, said Group Mobility boss Michael Peter. The trains are built in Krefeld, the locomotives for freight traffic in Krefeld and Munich, and the signaling technology comes from Braunschweig. The Egyptians bought “the most modern of the modern”.
The contract includes turnkey installation and maintenance for 15 years. The two additional routes are to connect the capital Cairo with its 20 million inhabitants along the Nile with Aswan and Luxor via Hurghada with Safaga.
Negotiations on this should be concluded in the coming months. Busch said: “This lighthouse project will create jobs, stimulate economic growth and improve the quality of life for millions of people.” Even the first route is designed for 30 million passengers and 1.3 million ton kilometers per year. The travel time will be cut by around half. The first line is to be gradually put into operation between 2023 and 2027.
The consortium will create more than 15,000 jobs locally, said Busch. Half of the added value comes from Germany. The Egyptian Minister of Transport, General Kamel El-Wazir, said: “The project will also help promote tourism through a fast, modern and safe means of transport.”