Minister of Planning and Economic Development Hala Al-Saeed and Minister of Transport Kamel Al-Wazir witnessed the signing of a contract establishing the National Egyptian Railway Industries Company (NERIC) in East Port Said, the project's organizers said in a joint press release on Tuesday.
The agreement was signed between the General Authority for Suez Canal Economic Zone (SCZone), Egypt’s Sovereign Wealth Fund (SWF) and several private sector companies -- including Samcrete Investments Holding, Hassan Allam Holding, Orascom Construction and Connect Information Technology -- on the sidelines of the third edition of the Smart Transportation and Logistics Fair and Forum for the Middle East and Africa (Trans MEA 2020).
The project aims to localize the railway industry in Egypt and increase its regional and international exports.
The first phase of NERIC will cost around EGP 2.8 billion ($178.9 million), while the second phase, to be implemented over the next ten years, will cost around EGP 3 billion.
The new company will consist of two plants in East Port Said, northeast of Cairo, the first with annual capacity to build 425 railway and metro carriages, and the second set to make parts, said its director Ahmed Fikry Abdel Wahab.
The parts factory is expected to start operation in the fourth quarter of 2021, while the metro cars factory is expected to be operational by the fourth quarter of 2022.
The SWF aims to achieve sustainable financial returns in the long term through a balanced and diversified portfolio, with investments in NERIC expected to reach $10 billion over the coming ten years, Al-Saeed said.