Egypt will have its first major rolling stock production plant under an agreement signed in Cairo on Tuesday for the creation of a joint venture with a capital of $240 million.
The General Authority for Suez Canal Economic Zone (SCZone) and the Sovereign Fund of Egypt signed an agreement with several private-sector companies for the establishment of the National Egyptian Railway Industries Co. (NERIC) in East Port Said, a key Egyptian export terminal on the Mediterranean Sea.
Local media, and statements by planning and transport ministry said the private partners comprise Samcrete Investments Holding, Hassan Allam Holding, Orascom Construction, and Connect Information Technology.
Planning and Economic Development Minister Hala Al-Saeed said a refurbishment plant is expected to start operation in the fourth quarter of 2021, while the locomotive factory would begin its operations by the end of 2022.
Investments in the joint venture are expected to reach $10 billion over the coming 10 years, she added.
Transport Minister Kamel Al-Wazir said 40 percent of the components of the rolling stock would be locally produced and that the plant would target both the domestic and foreign markets, adding that it also aims to attract technology and capital by global firms.
He said the factory, spread over 300,000 square metres, would be built in two stages and would have the capacity to produce 300 units per year.
"This is one of the most important industrial projects in Egypt," the Zone's Chairman Yehya Zaki said. "The project is expected to boost the Zone's international rating and create large investment opportunities."
(Writing by Nadim Kawach; Editing by Anoop Menon)
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