Egypt is set to bring 125 out-of-operation locomotives back to life — under a USD 297 mn agreement with Canada’s INPS Group, which includes its rail aftermarket parts and overhauls firm, Advanced Power Dynamics (APD), a senior government source told EnterpriseAM on Thursday. The 12-year contract to rehabilitate and upgrade 180 aging Henschel locomotives — including 55 already in service — plays into the government’s wider strategy of maximizing the efficiency of its existing fleet to support its push into freight transport and logistics.

The Transport Ministry also signed a EUR 54.9 mn agreement with Italy’s Salcef to modernize 300 km of railway lines. Spain’s Indra Sistemas also bagged a EUR 12.4 mn contract to upgrade contactless ticketing for Metro Lines 1 and 2.

Why it matters

Resurrecting the ghost fleet: By rehabilitating 125 units, the move becomes more than a maintenance contract — it’s a massive capacity injection. It also comes as part of a push to localize train manufacturing, spare parts production, and overhaul activities –– reducing reliance on imports, the source said.

A larger rehab theme is at play: Egyptian National Railways signed three contracts worth over USD 235 mn with US-based Progress Rail last year to upgrade and maintain the country’s locomotive fleet. This included a USD 42 mn contract to supply spare parts for 141 units over 15 years.

What’s next?

We can expect a heavy focus on localization — with the government using these contracts to push for the local production of spare parts and maintenance activities to reduce the long-term FX drain from importing railway components.

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