The Know How: Localizing the Locomotive Industry in Egypt

In the framework of the journey Egypt has embarked on to develop the railway network, the government seeks to localize the locomotive industry in partnership with the private sector to curb import in the future. Hence, the Ministry of Transport has signed several deals with global companies to build factories that would produce various locomotive products locally.

Alstom

The Egyptian Cabinet approved in principle in July an investment plan by French company Alstom to establish two factories in Alexandria that would create 1,200 job opportunities for Egyptian engineers and technicians.

One factory would be dedicated to the production of electrical systems and railway components such as signals, panels, electrical circuits for control, and electrical braids, among others. The other would manufacture all types of mobile units of metro lines, trams, LRT, monorail, express trains, and other means of transport.

Talgo

In March, a cooperation protocol was signed between the Egyptian Railway Authority (ERA) and Spain’s Talgo for the company to build a factory in Egypt for the production of railcars. 

Minister of Transport Kamel El-Wazir stated that the plant would be built in Beni Suef's Kom Abou Rady on a surface area spanning over 20 feddans (90,000m2) next to the railway workshops. 

Each of the first and second phases of the plant comprises the manufacturing of 50 trains by Egyptian engineers and workers, but under the supervision of Spanish experts. Also, the local component is planned to be 45%.