Egypt signs rail deals to localize coach production
Agreements cover 500 air-conditioned railcars and new maintenance firm to modernize fleet and boost domestic industry
CAIRO, Egypt (MNTV) — Egypt has signed two major railway agreements aimed at expanding local manufacturing and improving maintenance capacity, as part of broader efforts to modernize its national rail system.
The deals were concluded between Egyptian National Railways and the National Egyptian Railway Industries Company (NERIC), in the presence of Transport Minister Kamel al-Wazir and Labor Minister Hassan Shehata.
The first agreement focuses on the domestic production of 500 air-conditioned passenger coaches, a step intended to upgrade the country’s rail fleet and enhance service quality.
Officials say the move aligns with government plans to reduce reliance on imports while building competitive industrial capacity.
The initiative builds on previous collaborations involving metro train manufacturing, including projects carried out with international partners for Cairo and Alexandria’s urban transit systems.
A second agreement establishes a dedicated company to manage and operate the Kom Abu Radi railway workshops, a key facility responsible for maintenance and repair of rolling stock.
The new entity is expected to improve efficiency, strengthen fleet readiness, and support the long-term sustainability of rail services.
Al-Wazir said the agreements reflect a wider strategy to localize key industries under directives from President Abdel Fattah el-Sisi, while also encouraging private sector participation to enhance service standards and optimize state assets.
Officials added that expanding domestic production in the railway sector is likely to generate skilled employment and support workforce development in line with evolving technological demands.
NERIC representatives described the agreements as a milestone for Egypt’s transport manufacturing ambitions, noting that the company is also seeking to expand its role into maintenance and refurbishment services.
The deals highlight Egypt’s push to modernize its railway infrastructure while positioning itself as a regional center for rail industry development.
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