Egypt signs preliminary agreement with German Deutsche Bahn to operate electric railway

Ahram Online , Tuesday 16 Aug 2022

Egypt’s Ministry of Transport – represented by the National Authority for Tunnels (NAT) – has signed a preliminary agreement with a consortium of German railway company Deutsche Bahn (DB) and the Egyptian private-sector company El-Sewedi Electric on the management and operation of the country's first high-speed electric train network.

The agreement, dubbed the main contract document, defines the basic terms for the management and operation of the three-line, high-speed electric train network in Egypt that covers 2000 kilometres, according to a statement released by the transport ministry on Tuesday.

The step comes in preparation for signing a final contract to handover the management and operation of the network to the German company for a period of 15 years, extendable for another 15 years, the statement read.

The agreement guarantees the transfer of expertise, including training Egyptian engineers and technicians, Transport Minister Kamel El-Wazir, who attended the signing ceremony held earlier today, said.

The network will be operated based on the revenue-sharing system, with 90 percent of the project workforce to be Egyptians, El-Wazir added.

Egypt has plans to promote cooperation with the private sector, from one side, and to capitalise on international companies' know-how in the field of management and operation of modern transport projects, on the other, the transport minister stressed.

DB operates 34,000 kilometres of railways in Germany. It also operates railways in the US, the UK, Denmark, the Netherlands, Poland, Canada, Uruguay, India and the UAE.

FACTBOX: Egypt's high-speed rail network:

With a total cost estimated at EGP 360 ($23 billion), Egypt signed a contract with German Siemens Mobility in May 2022 to build about 2,000 kilometres of high-speed rail in the country.
The network, which will be accessible by around 90 percent of Egyptians, will include three lines and provide about 500 million journeys annually.
The rail lines will connect 60 cities nationwide via trains that can operate at up to 230 km/hour.
The first line will link Ain Sokna city on the Red Sea with both Alexandria and Marsa Matrouh and will extend for 660 kilometres.
The second line will stretch 1,100 kilometres, linking Cairo in the north with Aswan’s Abu Simbel in the south.
The third line will connect Luxor in Upper Egypt with Hurghada city on the Red Sea.
The project cost will start being paid for six years after the beginning of construction work over a period of 14 years.
The project will be the sixth largest of its kind in the world, according to the German train manufacturer.
The eco-friendly project is part of the country's effort to go green in order to tackle climate change impacts.