Egypt’s Ministry of Transport has overseen the signing of two landmark agreements between Egyptian National Railways and the National Egyptian Railway Industries Company (NERIC), advancing efforts to localize railway manufacturing and strengthen maintenance capacity.
The agreements were signed at NERIC’s manufacturing facility in the presence of Transport Minister Kamel Al-Wazir and Labor Minister Hassan Shehata. They cover the local production of 500 modern air-conditioned passenger railcars and the creation of a specialized company to operate and manage the Kom Abu Radi railway workshops.
Minister Al-Wazir said the deals align with President Abdel Fattah El-Sisi’s directives to localize strategic industries, particularly in transport. He stressed that Egypt is steadily building domestic manufacturing capabilities to meet local demand and eventually compete in export markets.
The first agreement focuses on producing 500 passenger coaches, supporting the government’s plan to upgrade the national railway fleet and improve passenger service quality. It builds on earlier contracts with NERIC, including the production of 40 metro trains (320 cars) in partnership with Hyundai Rotem for Cairo Metro Lines 2 and 3, and the supply of 21 trains for the Alexandria Metro project.
The second agreement establishes a dedicated company to manage the Kom Abu Radi workshops, a key maintenance hub. The initiative aims to enhance overhaul, repair, and maintenance operations across rolling stock, improving efficiency, fleet readiness, and service sustainability.
Al-Wazir noted that the move reflects a broader strategy to involve the private sector in railway operations, fostering competition, raising service standards, and maximizing the value of state-owned assets. He added that the system would also benefit railway employees by improving working conditions and boosting productivity.
Labor Minister Shehata described the agreements as a significant step in strengthening Egypt’s industrial base and creating quality jobs. He emphasized that expanding local manufacturing in the railway sector will support skills development and align workforce capabilities with evolving technological demands.
NERIC Managing Director Ahmed El-Mofty said the 500-coach contract marks a milestone in Egypt’s rolling stock industry. He added that the Kom Abu Radi project reflects NERIC’s vision to expand beyond manufacturing into maintenance and refurbishment, supporting the railway ecosystem more comprehensively.
Together, the agreements underscore Egypt’s drive to modernize its railway system while positioning itself as a regional hub for transport manufacturing.
