Egyptian National Railways signed three contracts with US-based Progress Rail to upgrade and maintain parts of the country’s locomotive fleet, according to a statement from the Transport Ministry, another from the US Embassy in Cairo, and a statement from Progress Rail. The agreements are worth over USD 235 mn.

The details: The agreement with the Caterpillar subsidiary covers the refurbishment of 100 diesel-electric locomotives at a cost of USD 185 mn, a USD 42 mn contract to supply spare parts for 141 units over 15 years, and a USD 5 mn technical support agreement for the same units over five years, with an option to extend for another five. The contracts also cover installation of new engines, advanced control systems, high-voltage electrical cabins, air compressors, low-pressure cabins, air brake systems, and cooling systems.

The goal: “This locomotive modernization program will extend the existing assets’ useful life by up to 20 years, while updating the control and engine system to achieve significant fuel savings and reduced greenhouse gas emissions,” VP Jack Zhang noted in a statement. The move looks to reduce the locomotives’ oil consumption by some 50%.

We knew this was coming: The cabinet approved the transaction during one of its weekly meetings late last month.

Not the pair’s first collaboration: The ENR inked four contracts worth a combined USD 466.3 mn with Progress Rail in 2019 to supply 50 new locomotives, upgrade 50 others, completely overhaul 41 old locomotives, and provide maintenance for all 141 for 15 years.

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