EGYPT –Semaf For Trading & Engineering Services, an Egypt-based company affiliated to the Arab Organization for Industrialization (AOI, has signed a contract with the Egyptian Railway Authority (ERA) for the supply of 100 locomotives.
The locomotives from Semaf will provide support to the imported locomotives that are operating on the long lines.
The new deal with Semaf builds on a number of other deals that the Egyptian Railway Authority (ERA) has entered with railway manufacturers for the supply of new locomotives for its extensive rail network.
Earlier, Egypt had signed a contract worth €125.6 million with Talgo for the Spanish company to supply six trains that will be operated on long lines.
The deal includes 90 railcars, six engines, 30 first-class air-conditioned railcars, 48 second-class air-conditioned railcars, six power railcars and six cabooses. The first batch will arrive in March next year.
ERA also signed a contract worth €1.065 billion with Transmashholding for supply 1,300 railcars.
The rail cars are comprised of 500 third-class air-conditioned railcars, 180 second-class air-conditioned railcars, 90 first-class air-conditioned railcars, 500 third-class dynamic-ventilation railcars, and 30 air-conditioned cabooses.
The contract termed as the largest that ERA has ever signed is funded by a soft loan worth €1.02 billion granted by Hungarian Export-Import Bank (EXIM) and State Specialized Russian Export- Import Bank (Eximbank of Russia).
The 1,300 railcars shall be delivered over batches within 40 months. The Hungaray-Russia company is expected to complete delivery by the end of 2021.
According to contract terms of €1.02 billion, out of the total rail cars to be delivered, 150 will be manufactured by Egypt under the supervision of Transmashholding.
For train engines, ERA signed a contract worth US$602.05 million with General Electric for the company to supply 110 train engines, rehabilitate 81 others of the current fleet at Tebin Workshop in Cairo, and supply spare parts for 15 years, in addition to offering technical support.
An Egyptian locomotive factory will also be established as part of a plan to localize the locomotive industry in Egypt and transfer the know-how to workers, technicians, and engineers in the sector.
To this end, Egypt has partnered with Bombardier International, to explore possibilities of establishing a new factory to manufacture railway vehicles, metros and monorails.
Bombardier is one of the world’s largest companies in the rail vehicle and equipment manufacturing and servicing industry.
The company’s rail equipment division, Bombardier Transportation, is based in Berlin German and produces a wide range of products including passenger rail vehicles, locomotives, bogies, propulsion and controls.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE