The line can be lengthened to Libya's Benghazi through Egypt's Saloum town.
The total cost is LE360 billion.
The ministry signed with the American firm a deal worth $602.05 million.
Minister of Transport Kamel el Wazir announced on Friday that 22 new train coaches arrived at Alexandria Port.
That is to inhibit passengers from boarding without purchasing tickets.
The railway dubbed LRT extends over 90 kilometers and encompasses 16 stations.
The Egyptian Railway Authority (ERA) indicated in a statement Tuesday that the signaling systems all over Egypt are being modernized.
The batches are part of a contract with the Russian Transmach Holding Company.
A new batch carrying 22 Russian train vehicles has arrived Tuesday at Alexandria Port, as part of a 1,300 vehicle-deal; the largest deal in Egypt's historic railway system.
The railway extends with a length of about 900 km in both countries.
Egyptian Transport Minister Kamel el Wazir on Friday followed up the implementation rate of the electric train project (LRT) in the 10th of Ramadan City and the monorail project in the New Administrative Capital.
President Abdel Fattah el-Sisi stressed that joint development projects will be expedited as he met with Chairman of the Sovereignty Council of Sudan Abdel Fattah al-Burhan on Tuesday.
The company is aimed at renewing locomotives.
The project, in its first phase, will extend from Aswan to the south of Wadi Halfa, where this funding will be through coordination and cooperation between Egypt, Sudan and the Kuwait Fund for Economic Development.
By the end of October, Egypt is expected to receive 17 new locomotives.
Senior citizens above 70 years of age have been exempt from the metro ticket, while those above 60 will have a 50 percent discount upon showing their national ID.
A company was established under the name of “The Egyptian National Railways Industries” to undertake the establishment and the operation of the factory.
The vehicles have so far reached 81 out of a total 1,300 that should be imported as part of the deal.
President of Bombardier Inc. Danny Di Perna stated in a TV interview Sunday that he had met with Minister of Transportation Kamel al-Wazir.
The decision follows an incident that was videotaped by a passenger, and went viral on social media.