GE signs $ 575 million transportation agreement

CAIRO – 17 June 2017: The Egyptian National Railways signed an agreement to purchase 100 train engines worth $ 575 million from General Electric (GE), according to a statement from the Cabinet Saturday.

The signing ceremony was attended by Prime Minister Sherif Ismail; vice chairman of GE John Rice; Minister of Investment and International Cooperation Sahar Nasr; Minister of Transport Hisham Arafat; chairman of the Egyptian National Railways Medhat Shousha; US ambassador to Cairo Robert Stephen Beecroft, and a number of representatives of the company.

Sahar Nasr affirmed that the agreement came on the back of extensive negotiations by the ministries of investment and transportation with GE during the last period. She explained that the agreement contributes to the development of Egypt's investment market, especially as the deal will involve international institutions to create investment opportunities based on the principle of partnership.

Arafat said that this agreement would support the railways’ role in the transportation of goods benefiting from the strength of GE train engines up to 4,000 horsepower. He pointed out that the first shipment will include 25 train engines and are due to arrive in 2018.

The deal came in the framework of the Ministry of Transportation’s plan to develop the railway transport system to reduce the burden on road networks, Arafat said.

He added that the ministry seeks to transport 25 million tons of cargo per year through the railway network by 2022.

The minister noted that the agreement also included the maintenance and upgrade of 81 old train engines, the training of Egyptian labor on the maintenance of engines and providing spare parts.

For his part, Rice said the company is keen to boost its strategic partnership with Egypt, asserting that GE will work with the ministry of transportation and Egyptian Railways to train Egyptian technicians and develop the capabilities of the railway network.

Later in May, Ismail met with the GE CEO for North East Africa and discussed potential fields of bilateral cooperation.

The meeting included a delegation of GE representatives, and the ministers of electricity, transportation, international cooperation and investment. The meeting discussed the company’s ideas to develop railway lines and to improve the efficiency of services offered to citizens.