International and Local Alliances Bid for Renovation of Key Egyptian Railway Line Valued at $285 Million

Monday, September 30, 2024

Four international and local alliances have presented technical and financial proposals to the Egyptian Railways Authority for the renovation of the Rubiki-10th of Ramadan-Belbeis railway line, a project valued at approximately $285 million, as confirmed by government officials to Asharq Bloomberg.

The 10th of Ramadan railway is part of a strategic initiative by the Egyptian Ministry of Transport, marking the second of seven planned logistical corridors to be developed over the next five years. These corridors aim to connect Egypt’s Mediterranean and Red Sea ports to inland dry ports and logistical areas, encouraging the use of railways for freight transport instead of traditional trucking methods. This initiative is designed to enhance the efficiency of freight transportation, reduce road congestion, and lower carbon emissions.

The bidding alliances include:

1. A consortium of France’s Alstom, Concrete Plus, and Egypt’s Pioneers of Modern Engineering.
2. The Dhaka Bangladesh Group.
3. GTS, part of the Spanish CBS Group, partnering with Orascom Construction of Egypt.
4. A consortium comprising France’s Hitachi, Italy’s Mermec and Salchev, and Egypt’s Al-Hazq.

The project costs are divided into two segments: the first segment, totaling $220 million, covers external components, including upgrading railway infrastructure, signaling systems, and enhancing safety measures. This will be financed through soft loans from the French Development Agency and the European Bank for Reconstruction. The second segment, exceeding EGP 3 billion, will be funded locally by the Egyptian Railways Authority, focusing on local labor and materials to boost the economy.

In addition to improving freight logistics, this renovation project aims to create job opportunities, stimulate local economies, and promote the use of sustainable transport methods. The entire project is expected to be completed within three years from the contract signing, with an anticipated start date for construction in early 2025.

This ambitious initiative aligns with Egypt’s broader economic goals, which include enhancing transportation networks, promoting trade, and supporting sustainable development within the region. The successful implementation of the Rubiki-10th of Ramadan-Belbeis railway line renovation could set a precedent for future infrastructure projects across the country.