Minister of Trade and Industry Amr Nassar discussed with CEO of Transmash Kirill Lipa the possibility of manufacturing railway vehicles in Egypt.
This came during a meeting on Saturday on the sidelines of the St. Petersburg International Economic Forum (SPIEF).
The two parties discussed future cooperation projects, which the company plans to implement in the Egyptian market during the coming period as well as plans to shift towards the African continent through Egypt.
Nassar said that the company plans to manufacture railway and tram vehicles, as well as modernize railway lines and signaling in cooperation with the Hungarian Export-Import Bank (EXIM). “The company is expected to supply Egypt with 1300 train cars,” Nassar added.
The signed agreement includes the construction of a production line in Egypt for the joint manufacture of vehicles with a local component of not less than 40 percent, as well as the restoration of the railway workshops at Kom Abu Radi Industrial Zone at a cost of € 30 million of the total cost of the deal for the maintenance of these vehicles.
“We are currently negotiating with the company to sign a contract of vehicles’ maintenance for 15 years, in addition to providing training programs for workshop staff,” he pointed out.
On his part, Lipa stressed the company is keen to enter into the Egyptian market through joint manufacturing projects or supply of railway vehicles and maintenance work.
He added that the contract with the Egyptian government includes the supply of air-conditioned first and second railway vehicles and carriers.
The Egyptian government has signed a supply and manufacturing contract last year between the Russian-Hungarian alliance led by Transmash and the Ministries of Transportation and Military Production.
Transmash is the largest manufacturer of trains and rail equipment in Russia.