In a significant contribution to Egypt’s efforts to develop its transport infrastructure, international railway giant Alstom has decided to establish two new facilities in the country to manufacture trains and key railway components. This strategic investment will significantly strengthen the company’s presence in the Egyptian railway market and help the country achieve its sustainable mobility goals.
Strategic Location Near Alexandria
The new production complexes will be built in a strategic location near Egypt’s major port city of Alexandria, providing easy access to critical logistics routes. For this investment, Alstom signed a 16,2 hectare land lease agreement with the General Authority of Dry Ports. The official signing of this important agreement took place during the visit of French President Emmanuel Macron to Egypt, underlining the international importance of the project.
Comprehensive Production Range and Employment Contribution
One of the two facilities will focus on the production of various types of railway vehicles, such as trams, monorail trains and high-speed train sets. The other facility will be dedicated to the production of railway signal systems and critical electrical components related to these systems. This major investment is expected to create approximately 1.200 new local jobs in the region. This employment contribution will provide a significant boost to the Egyptian economy and provide new opportunities for the local population.
Alstom's Strong Foundation in the Egyptian Rail Market
Alstom already has a solid foothold in the Egyptian rail market. The company has signed a major contract for the construction of Line 2022 of the Cairo Metro in 6. This contract includes the supply of 294 driverless Metropolis trains and their long-term maintenance. In addition, Alstom is further increasing Cairo’s public transport capacity by supplying 1 new trains for Metro Line 55, the capital’s vital transport network. In addition, Alstom is building a brand new monorail system with 70 state-of-the-art Innovia 300 trains manufactured in the UK. These current projects clearly demonstrate Alstom’s long-term commitment to Egypt’s transport infrastructure.
Localization and Technology Transfer with New Investments
With these new and large-scale investments, Alstom aims to deepen its localization efforts in Egypt and further contribute to the country’s sustainable mobility goals. The modern facilities will accelerate the transfer of advanced technologies to Egypt and help reduce the country’s import dependency on rolling stock and components. This will increase Egypt’s self-sufficiency rate and provide significant impetus to the development of local industry.
Employment and Local Supply Chain
The project aims to not only create jobs but also include local suppliers in the value chain, which will have long-term benefits for the Egyptian economy. Integrating local companies into Alstom’s production processes will allow these companies to grow and contribute to the overall cost-effectiveness of the project. Construction is expected to begin quickly after all administrative procedures and necessary permits are completed.
Egypt's Importance of Global Partnerships
Egyptian authorities have consistently emphasized the vital importance of global partnerships in modernizing the country’s transportation infrastructure. Encouraging domestic production accelerates the country’s infrastructure growth while also strengthening the national economy. In this context, these important initiatives by Alstom play a key role in shaping Egypt’s modern and sustainable transportation system and advancing international cooperation in the sector. Alstom’s major investment in Egypt is seen as a sign of confidence in the country’s future in the railway sector and its potential in this area.
