Egypt, Hyundai Rotem ink contract to locally manufacture carriages for Cairo Metro

Nada Nader, Wednesday 24 Aug 2022

Egypt’s Prime Minister Moustafa Madbouly oversaw on Wednesday the signing of a contract with South Korea’s Hyundai Rotem to locally manufacture and import 320 new air-conditioned metro carriages.

Rotem officials, Egyptian Ministers at the cabinet headquarter in New Alamein city.
Rotem officials, Egyptian Ministers at the cabinet headquarter in New Alamein city.


The deal was signed between the National Authority for Tunnels (NAT), Hyundai Rotem, and the National Egyptian Railway Industries Company (NERIC).

The deal aims to add a total of 40 new metro trains to the Cairo Metro’s second and third lines by 2028, at a total cost of $656 million, according to a statement by the Ministry of Transport. 

The contract stipulates a two-year guarantee and eight years of maintenance work after the expiration of the guarantee period.

Chairperson of the NAT Sherif Hassan, CEO of Hyundai Rotem Yong-Bae Lee, and the Managing Director of NERIC Ahmed Fikry Abdel-Wahab signed the agreement.

The contract is an implementation of an MoU signed in April 2021 by the three parties.

Madbouly said the deal is in accordance with President Abdel-Fattah El-Sisi’s directives to localise heavy industries in Egypt, including manufacturing mobile units in accordance with the international standards.

Minister of Transport Kamel El-Wazir, who also attended the signing ceremony, said the contract represents the first step in making Egypt one of the major industrial countries in this field. He added that the contract aims to localise advanced technology and increase the national income by exporting to various countries around the world, especially in Africa.

El-Wazir added that the Egyptian government has drafted a plan to develop and upgrade the underground metro and electric trains to support economic growth and urban expansion.

The Cairo underground metro system serves more than 4 million passengers daily throughout the capital and surrounding areas.

The minister noted that around 30 percent of metro carriages will be locally manufactured to absorb the daily number of passengers.

El-Wazir lauded the long and fruitful cooperation with Hyundai Rotem, as the South Korean company had previously exported a large number of trains for the Cairo Metro.

Chairman of the General Authority for the Suez Canal Economic Zone (SCZONE) Walid Gamal El-Din, who also attended the signing ceremony, said the project covers an area of 300,000 square meters, which reflects the seriousness of the SCZone in localising manufacturing.

Gamal El-Din said that NERIC aims to localise the railway industry in Egypt, which will open the gate for other industries.

In January 2022, Korean President Moon Jae-In toured Cairo Metro Line 3, which is being built with assistance from the South Korean government and companies.

During his tour, the Korean president was briefed about the contribution of the South Korean government to the project, including a 2018 contract with Hyundai Rotem to manufacture and supply Egypt with 32 air-conditioned train cars.

According to the 2018 contract, the company will also oversee the maintenance of the trains for eight years. The value of the contract is EGP 640 million (about $40.7 million), in addition to $317.7 million in financing from the South Korean government.

In November 2021, Cairo and Seoul signed an MoU valued at $650 million to localise the railway industry in Egypt.

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