Ahram Online , Monday 27 Apr 2026
Egypt signed two agreements on Monday to manufacture and supply 500 air-conditioned passenger railcars and to establish a company to operate railway maintenance workshops, as part of efforts to localize transport industries, the transport ministry said.
Photo courtesy of Egypt's cabinet
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The deals, signed between the Egyptian National Railways Authority (ENR) and the National Egyptian Railway Industries Company (NERIC), represent part of a broader state strategy to boost domestic manufacturing, improve rail services, and expand private sector participation in the railway system.
Transport Minister Kamel Al-Wazir, who attended the signing alongside Labour Minister Hassan El-Raddad, said the first agreement covers the local manufacture and supply of 500 air-conditioned passenger coaches to support the modernization of ENR’s fleet and enhance service quality for passengers.
“The agreement comes within the framework of directives by President Abdel-Fattah El-Sisi to localize various industries, including transport manufacturing, to meet domestic demand and move towards exports,” Al-Wazir said.
He added that the contract builds on previous cooperation with NERIC, including a deal to manufacture 40 metro trains comprising 320 air-conditioned carriages in partnership with South Korea’s Hyundai Rotem for Cairo Metro Lines 2 and 3, as well as a contract to supply 21 trains for the Alexandria Metro project.
The second agreement involves establishing a specialized company to operate the Kom Abu Radi railway workshops, tasked with the overhaul, repair, and maintenance of different railcar models to improve efficiency and keep trains in service.
Al-Wazir said the move is part of a broader plan to involve the private sector in managing certain railway sectors, boosting competition, improving service standards, and preserving railway assets while increasing revenues.
Minister El-Raddad said the agreements would support job creation and skills development, noting that expanding local manufacturing of train components would help build a qualified workforce aligned with labour market needs.
NERIC Managing Director Ahmed El-Mofty described the 500-carriage contract as “a significant step” in developing rolling stock manufacturing in Egypt, adding that the Kom Abu Radi project reflects the company’s broader role in maintenance and operational support beyond manufacturing.
Egypt’s railway sector is undergoing one of its most extensive overhauls in decades, driven by a state-led strategy to modernize infrastructure, upgrade rolling stock, and improve service quality across the network.
The programme includes large-scale procurement of new passenger coaches, locomotives, and signalling systems, alongside the rehabilitation of tracks and stations, as part of efforts to enhance safety, reduce travel times, and accommodate growing demand.
A central pillar of this strategy is the localization of transport manufacturing to reduce reliance on imports and build domestic industrial capacity. The establishment of NERIC reflects this push, with the company positioned as a core vehicle for producing rolling stock in Egypt through partnerships with international firms, most notably South Korea’s Hyundai Rotem.
Previous agreements have already covered metro rolling stock for Cairo and Alexandria, signalling a shift toward domestic assembly and eventual full-scale manufacturing.
At the same time, the government has been expanding private sector participation in transport operations and maintenance, in line with broader economic reforms aimed at improving efficiency and competitiveness.
The move to establish a specialized company to operate Kom Abu Radi workshops aligns with this plan, as authorities seek to upgrade maintenance capabilities, extend asset lifecycles, ensure the sustainability of the railway system, and create skilled jobs while supporting technical training.
