Siemens Mobility, a unit of global technology major Siemens, has announced that its consortium with Orascom Construction and The Arab Contractors has secured a turnkey rail system contract worth $4.5 billion from the National Authority for Tunnels (NAT). 

 

As per the deal, Siemens Mobility consortium will deliver a comprehensive rail system featuring the first ever high-speed, electrified main and freight rail line that will transform the transportation sector in Egypt. 

 

The scope of work includes comprehensive turnkey services to design, install, commission, and maintain the systems for 15 years.

 

The deal also covers 660 km of modern, safe, and integrated rail system to link the Red and Mediterranean Sea for people and goods, said the statement from Siemens.

 

Of the total contract value, the German technology giant's share is around $3 billion. The vast majority of the order intake is expected to be booked in 2022 after financial closing. 

 

It is the first contract to be signed following the MoU agreed upon between NAT and Siemens Mobility, Orascom Construction and The Arab Contractors in January this year. 

 

The contract signed today covers the initial 660 km out of the 1800 km rail network planned. Additionally, it was agreed to discuss and finalize the agreements on the two other high-speed railway lines including rail infrastructure and trains, and maintenance in the coming months. 

 

On the key agreement, Lieutenant General Kamel El-Wazir, Egyptian Minister of Transport, said: "This high-speed train will strengthen the infrastructure of the areas it passes through and help achieve urban sprawl, in addition to linking the New Administrative Capital and new cities to the railway network for transporting passengers and goods."

 

"The project will also help promote tourism through a fast, modern, and safe means of transportation characterized by the highest levels of efficiency and safety to meet the needs and expectations of all Egyptians across the country which is considered a major leap in the field of rail transport. For its part, Siemens will provide its latest smart technology solutions, along with its continuous support to local skills development," he added.

 

Siemens President and CEO Roland Busch said: "We are proud to support the Egyptian government’s ambition to transform its transport sector by building its first high-speed electrical rail network. This landmark project will create jobs, boost economic growth, and improve quality of life for millions of people, by creating a more efficient, safe and sustainable transport system."

 

"As a long-standing partner to Egypt, we are committed to providing the most advanced technology and to supporting local skills development," he noted.

 

"We are honored and proud to become Egypt’s partner in constructing a state-of-the art rail system that will transform the everyday travel for millions of Egyptian people," he added.

 

For this project, Siemens Mobility will deliver its Velaro high-speed trains, Desiro high-capacity regional train sets, and Vectron freight locomotives. A safe and reliable signaling system based on the latest computer-based interlocking technology and European Train Control System (ETCS) Level 2 will be installed, as well as the power supply system that delivers efficient and continuous energy. 

 

Furthermore, Siemens will provide and integrate the latest communications, safety and security systems that will create a pleasant passenger experience. The trains as well as all subsystems are based on the most modern and proven products and platforms. Siemens Mobility’s consortium partners will install the tracks, while the customer will build the bridges and facilitate the sub construction.