Spanish train manufacturer Talgo has signed a framework agreement with Arab Organization for Industrialization (AOI) to improve rolling stock across all rail segments in Egypt.

As per the agreement, the Spanish train manufacturer will collaborate with Semaf, the railway equipment subsidiary of AOI, to explore options for the joint manufacturing of rolling stock.

The partners will produce rolling stock for different operating segments, including long-distance rail services.

Talgo CEO Jose Maria Oriol Fabra and SEMAF Factory chairman Esmail Nagdy signed the agreement at the Talgo headquarters in Madrid.

The latest agreement follows Egyptian National Railways (ENR) awarding a €158m contract to Talgo for six inter-city trainsets through an open competitive process in April.

The contract involves the delivery of six Talgo trainsets, each comprising a diesel-electric locomotive, a technical car or power car and 14 passenger cars.

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By GlobalData

It also includes integral maintenance of the vehicles for a minimum of eight years.

Once delivered, the trains will be used to provide services on the main route of the country, connecting Alexandria, the Egyptian capital Cairo and the southern city of Aswan.

Recently, Talgo commissioned very high-speed trains for the Haramain railway in Saudi Arabia.

The $7.87bn Haramain Railway high-speed line connects Mecca and Medina with Jeddah and King Abdullah Economic City.

The line spans 450km and is expected to transport 60 million passengers a year.

Furthermore, the line is set to connect to a new terminal at Jeddah airport, which is the main point of entry for Hajj pilgrims.