Egypt is looking for opportunities to upgrade the rail infrastructure. Hence, the government in Cairo has stepped up several railway investments to improve its safety. To implement its 2018 plans of developing new tracks the Egyptian Railway Authority (ERA) will purchase 1,300 railcars.
As a part of the efforts to improve railway in Egypt, the Egyptian Railway Authority issued an international tender in November 2017 in order to choose the company that will manufacture and supply 1,300 railcars. This will support and develop both passengers and freight transport.
Approximately 12 international companies were invited to this tender. Offers were submitted by companies from Russia, Hungary, China, Italy and Spain to manufacture and provide the railcars. The carriages should be delivered within 40 months after signing the contract.
In the first quarter of 2018, the national railway authority will determine which companies will be chosen to sign the contract.
We remind that in August 2017, Egypt signed a USD 575 million agreement with General Electric to provide 100 new multi-purpose locomotives, 15 years technical support and spare parts, and to maintain and upgrade 81 trains bought by Egyptian railways in 2008 (as part of a plan to transport 25 million freight tonnes by rail, by 2022).
The delivery of the first 25 General Electric locomotives would take place in 2018.
In addition, the European Bank for Reconstruction and Development (EBRD) has provided the Egyptian Railways a USD 290 million financing to supply the acquisition of the entire fleet of 100 new locomotives.
Furthermore, EBRD will help Egyptian Railways with technical assistance to develop and implement a comprehensive freight reform program to separate the freight operations from rail passenger services.
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