That is in addition to carrying out maintenance and supplying parts for 15 years.
Egypt used to have a shortage of 600 railcars but that is no longer the case.
It will extend over 21 kilometers and include 20 stations.
The minister noted that Egyptian railways like other facilities affiliated to the ministry have been affected badly by negligence and abandonment for long.
There are four of them.
The deal is financed by the European Bank for Reconstruction and Development (EBRD) with €290 million.
Both ministers began by discussing ways of acquiring funding to finance the feasibility studies.
Investments in the railway sector are projected to be LE142 billion over one decade between 2014 and 2024.
The company will manufacture and supply 100 locomotives to support air-conditioned trains operating on long lines.
Thirty-three railcars had been delivered over two batches in May and July.
The Ministry of Transportation implemented a plan to develop railways in 2017.
The Ministry of Transportation aims to increase the railway network’s share in cargo transport