The General Authority for Suez Canal Economic Zone (SCZone) in cooperation with the sovereign fund and representatives of the private sector started a project to establish the first company to manufacture railroad cars. It is expected to reach revenues of $ 1.7 billion within 10 years.
It is one of the projects included in SCZone's plan during the next five years.
Sources revealed that the expected savings due to operating the railway production plant amount to $ 1.7 billion over 10 years of operation. This is supposed to contribute to increasing the gross domestic product by about 28 billion pounds.
The integrated industrial complexes aim to implement the state's plans to localize the main industries in Egypt and provide employment opportunities.
One of the most important goals achieved by such projects is the expected savings as a result of reducing the volume of Egyptian imports. Consequently, it will relieve the pressure on Egypt's monetary reserves.
Sources said that the new company's capital amounts to one billion and 200 million pounds. The founders' shares are pided between 7 parties:
The General Authority for the Development of the Economic Zone of the Suez Canal Zone by 12%
The sovereign fund by 2%
Hassan Allam Holding Company by 15%
Orascom Construction Company with 15%
Samcrete Engineers & Contractors company by 15%
Connect Information Technology Company by 15%
East Port Said Development Company (EP) by 16%.
Studies have estimated that more than 60% of the market size in the Middle East region is concentrated in 5 countries that have strong commercial relations with Egypt. This is in addition to the expected demand for new units to serve future projects to connect Egypt's railways with neighboring countries.
The Economic Authority has used international consulting offices to carry out financial, technical, engineering, legal, and commercial studies.
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Egyptian National Railways[/caption]
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