Railway Rolling Stock Production to Begin in Egypt in 2025

Egypt will begin railway rolling stock production in mid-2025, marking a major economic development milestone. The new plant will be located in East Port Said, covering 300,000 square meters. This was reported by the railway transport news portal Railway Supply.

The National Egyptian Railway Industries Company (NERIC) is partnering with South Korea’s Hyundai Rotem. This collaboration will drive the project’s three-phase construction plan, ensuring continuous capacity expansion. Once the first phase finishes, the factory will produce metro cars and trains for major rail lines.

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Investments for the first phase total EGP 4.2 billion ($82 million), funded by key banks. The National Bank of Egypt, Commercial International Bank, and Arab African International Bank are supporting the project financially. These funds will ensure the facility begins operations within the specified timeframe.

Economic and Technological Development

The project will generate 5,000 jobs, helping to reduce unemployment across Egypt’s labor market. Additionally, localization of railway rolling stock manufacturing will reach 75% within three years. This progress will reduce Egypt’s dependence on importing rail equipment while boosting domestic industries.

NERIC and Hyundai Rotem signed their initial cooperation memorandum in May 2021. Six months later, the two companies formalized a partnership agreement to establish local production. Their joint efforts aim to create an advanced manufacturing base for railway rolling stock production in the region.

Improving Rail Infrastructure

The new factory will significantly upgrade Egypt’s rail transportation infrastructure by producing modern, high-quality trains. The facility will also support tram and monorail production, meeting international standards for reliability. Future production capabilities will include maintaining and repairing the existing rolling stock fleet.

Regional Impact and Future Benefits

Launching the factory for railway rolling stock production will strengthen Egypt’s regional leadership in the industrial sector. The project will create a foundation for modernizing the nation’s transport system. Investments in technology and infrastructure will drive long-term economic growth.

This ambitious project supports technological advancements and addresses growing demands for efficient rail transport. Egypt will benefit from new trains, trams, and monorails that improve passenger travel and cargo services. The facility will play a key role in developing sustainable transportation solutions nationwide.

In conclusion, the factory in East Port Said will bring technological progress and industrial independence. Egypt’s rail sector will thrive through localized production, advanced technology, and a skilled workforce. This initiative represents a significant step toward economic stability and transportation modernization.

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