In a decisive move poised to transform Egypt’s railway industry, the National Egyptian Railway Industries Company (NERIC) announced plans to inaugurate its state-of-the-art factory in the East Port Said Industrial Zone by mid-2025. This major project is backed by an investment of approximately EGP 4.2 billion, according to a recent cabinet statement.
The announcement was made by NERIC Project Manager Ahmed El-Mofty during the signing of a significant syndicated loan agreement with the National Bank of Egypt (NBE), Commercial International Bank (CIB), and Arab African International Bank (AAIB). This financial collaboration underscores the strategic importance of the project, which has received robust support from Egypt’s banking sector.
Minister of Industry and Transport Kamel El-Wazir emphasized that the project covers an expansive 300,000 square meters, divided into three phases of 100,000 square meters each. This strategic plan is part of President Abdel-Fattah El-Sisi’s broader initiative to localize and advance various industries across Egypt, a vision that aligns with the national goals outlined in Egypt’s Vision 2030.
El-Wazir elaborated that the first phase, currently under construction, will focus on producing railway and metro vehicles. In the subsequent phases, the factory will expand to manufacture rolling stock for monorails, high-speed trains, and light electric trains. The final stage will concentrate on refurbishing older metro and railway vehicles, ensuring the sustainable development of Egypt’s transportation infrastructure.
Once operational, the NERIC factory is set to manufacture 40 new metro trains in collaboration with South Korea’s Hyundai Rotem. These trains, comprising 320 air-conditioned metro vehicles, will enhance the Greater Cairo Metro’s second and third lines, elevating passenger comfort and transportation efficiency. Additionally, plans are underway to locally produce 500 railway vehicles in cooperation with a global transport company, marking a significant leap in Egypt’s manufacturing capabilities.
NERIC, a private joint venture formed in partnership with governmental entities, is at the forefront of Egypt’s efforts to bolster its industrial sector. The establishment of this rolling stock plant is anticipated to be a cornerstone in the nation’s industrialization strategy, contributing significantly to the growth of the rolling stock sector.
Industry specialists, such as Dr. Amr Adly, a prominent economist at the American University in Cairo, note that this project will not only enhance domestic capabilities but also position Egypt as a pivotal player in the regional transport industry. With the global rolling stock market expected to reach USD 75 billion by 2025, according to a report by ResearchAndMarkets.com, Egypt’s strategic investments are timely and potentially lucrative.
Furthermore, exclusive insights reveal that NERIC is exploring partnerships with international technology firms to integrate cutting-edge innovations in manufacturing processes. This initiative could set new standards for efficiency and sustainability in railway production, making Egypt a leader in transport technology in the Middle East.
As NERIC moves forward with its ambitious timeline, the project stands as a testament to Egypt’s commitment to modernizing its infrastructure and achieving long-term economic growth. The factory is not just a new industrial facility but a symbol of Egypt’s emerging role as a hub for innovation and industrial development in the 21st century.
