National Egyptian Railway Industries Company (NERIC) and Egypt’s Transportation and Planning and Economic Development ministries have reportedly signed a memorandum of understanding (MoU) with South Korea-based company Hyundai Rotem.
This cooperation is aimed at facilitating the localisation of Egypt’s railway industry and the transfer of South Korean technology, reported Daily News Egypt.
The production of the transportation units will be executed in cooperation with the Egyptian firms.
Egypt will be delivering new trains for numerous metro lines over the next six years.
Transportation minister Kamel El-Wazir was quoted as saying by the publication: “We are proud to start today the first real manufacturing steps for the moving units of the metro and the means of electric traction with a local manufacturing percentage.
“President Al-Sisi directed for the localisation rate in local industry to reach up to 25% within two years, and 50% of the localisation after four years, and then up to 75% over six years. It ensures that mobile units are manufactured locally to secure Egypt’s requirements, and increase exports. When the company begins manufacturing, the priority will be to export especially to Africa.”
He added that the contract between Egypt’s SEMAF and Hyundai for the delivery of 32 new air-conditioned railcars for Cairo Metro’s Line 3 involves the local production of 25% of the ten trains.
The MoU is expected to bolster the local transportation manufacturing industry, driven by the transfer of advanced technology.
With the transfer of technology, the country will be able to provide more job opportunities, the report said.
Hyundai Rotem chairperson and CEO Yong-Bae Lee said that the company will introduce production factories in Egypt for metro cars, signalling systems, and control and driving equipment, as well as provide railway engineering services.