Planes, (a lot of) trains, and automobiles: Two days into the ongoing TransMEA 2023 industry event in Cairo, the state-run National Authority For Tunnels (NAT) has already signed a heap of contracts, framework agreements, and MoUs with Chinese, European, and local companies, the Transport Ministry said in a statement yesterday. Chinese firms seem to be set to continue spearheading much of our light-rail transit (LRT) project, Orascom Construction was chosen to help build a section of Metro Line 4, and the Madbouly government’s bid to localize manufacturing seem to be chugging along.

#1- LIGHT RAIL- All aboard the LRT: AVIC International Holding Corporation (AVIC INTL) and China Railway Major Bridge Engineering Group Co. inked a framework agreement to design and construct in collaboration with local subcontractors the 16-km fourth phase of Cairo’s LRT project that will extend the route into Tenth of Ramadan City. The value of the contract for the fourth phase will be the same as for the third phase contract, the statement said, without providing further details. AVIC — the main contractor for the LRT project — also signed an MoU for the fifth phase of the project that will reach into the new capital as well as an MoU for an light electric train that will link Al Rehab to the new capital.

Remember: AVIC has spearheaded the construction of the LRT from the start and has been working alongside a number of local contractors including Hassan Allam Holding, Orascom Construction, Concord, Arab Contractors, General Nile Company for Roads and Bridges, Egyptian Company for Maintenance of Roads and Airports, and Petrojet.

#2- HIGH SPEED RAIL- We may be getting a new high-speed rail line between Port Said and Abu Qir: Egypt-focused contractor El Didi Group and the Chinese Railway Group Limited (CREC) inked an MoU for a planned 250-km long high-speed rail line between Port Said and Abu Qir. The project will be carried out under a built-operate-transfer agreement, and the financing will be arranged by the contractors rather than the state, the statement said. No further details were provided

Déjà vu? Almost exactly a year ago, El Didi Group signed a similar MoU, which fell through due to changes in the financing arrangement.

ALSO- A number of local and international companies signed contracts to design, supply, and install the electromechanical systems for the 1.8k km national high-speed railproject led by Siemens.

  • Orascom Construction, Elsewedy Electric and Arab Contractors secured the contract for the first line running between Ain Sokhna and Marsa Matrouh.
  • Siemens Mobility, Orascom Construction, and Arab Contractors will install the systems for the second Sixth of October-Aswan line and the third Hurghada-Luxor line.

#3- METRO- Orascom Construction on board for Metro Line 4: Orascom Construction inked a contract to build the civil works for the stretch of Metro Line 4 between Giza and Fustat, it said in a statement (pdf). Details of the cost and terms of the contract were not disclosed, but the company said that a large part of the project will receive funding from the Japan International Cooperation Agency, which committed USD 733 mn to the project in April. The 40+ km line will connect Sixth of October to New Cairo and is expected to take six years to build.

#4- Local manufacturing also got another boost: The Egyptian Railways Authority inked a terms and conditions agreement with the Egyptian National Railway Industries Company (NERIC) to assemble 500 rolling stock, along with their maintenance and spare parts, over the span of 15 years, a second statement from the Transport Ministry said. NERIC also linked up with Spain’s CBS group through its subsidiary GTS to set up a local manufacturing plant for signaling devices.

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