Egypt is poised to achieve a significant milestone in economic and industrial development with the establishment of a railway rolling stock production
Egypt is poised to achieve a significant milestone in economic and industrial development with the establishment of a railway rolling stock production facility in East Port Said, scheduled to begin operations in mid-2025.
This ambitious project reflects Egypt’s commitment to modernizing its transportation infrastructure, fostering industrial self-reliance, and boosting economic growth. The factory will be located in East Port Said, covering 300,000 square meters. It marks a strategic investment in Egypt’s industrial and transportation sectors.
The National Egyptian Railway Industries Company (NERIC) is collaborating with South Korea’s Hyundai Rotem. A three-phase construction plan ensures scalability and continuous capacity expansion. The initial phase will focus on producing metro cars and trains for major rail lines.
The first phase requires an investment of approximately $82 million. Key financial institutions, including the National Bank of Egypt, Commercial International Bank, and Arab African International Bank, are providing the necessary funding.
Benefits
The project will generate 5,000 jobs, significantly contributing to Egypt’s labor market. Within three years, localization of railway rolling stock manufacturing is expected to reach 75%, reducing dependence on imports and supporting domestic industries.
Initial cooperation between NERIC and Hyundai Rotem began with a memorandum in May 2021, followed by a formal partnership agreement later that year. The first phase is on track to ensure operations commence by mid-2025.
The factory will produce high-quality trains, trams, and monorails that meet international standards for reliability and efficiency. Future capabilities will include maintaining and repairing the existing fleet of rolling stock. Localization and advanced manufacturing techniques will position Egypt as a regional leader in railway production.